Toro (NYSE:TTC) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Toro (NYSE:TTC) announced its quarterly earnings results on Thursday. The company reported $1.33 EPS for the quarter, beating analysts’ consensus estimates of $1.31 by $0.02, FiscalAI reports. The firm had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.19 billion. Toro had a net margin of 7.64% and a return on equity of 31.86%. The firm’s revenue for the quarter was up 8.4% compared to the same quarter last year. During the same quarter last year, the firm earned $1.24 EPS. Toro updated its FY 2026 guidance to 4.600-4.650 EPS.

Here are the key takeaways from Toro’s conference call:

• Toro raised full-year guidance, increasing expected net sales growth to 6.3%-6.6% and adjusted EPS to $4.60-$4.65, supported by broad-based demand and productivity gains.
• Third-quarter net sales rose 8.4% to $1.23 billion and adjusted EPS reached $1.33. Professional and residential sales both grew more than 8%, while residential adjusted operating margin expanded 400 basis points to 5.9%.
• The AMP productivity program is expected to exceed its $125 million run-rate savings target by year-end, with additional benefits carrying into fiscal 2027; working-capital improvements helped generate $425 million of year-to-date free cash flow and supported $358 million of share repurchases.
• Toro highlighted strong growth opportunities in underground construction, including data-center and utility infrastructure, pipe relining, and Tornado products, while Ditch Witch capacity expansion and potential acquisitions remain high capital-allocation priorities.
• Professional-segment operating margin declined 40 basis points year over year because of product mix and higher manufacturing costs, and residential sales are expected to be approximately flat in the fourth quarter as the company laps strong prior-year snow demand; tariff refund timing and winter weather remain variables.

Toro Stock Performance

Shares of Toro stock opened at $93.45 on Friday. The company has a 50 day moving average price of $96.21 and a 200 day moving average price of $94.98. The firm has a market capitalization of $8.90 billion, a P/E ratio of 24.99 and a beta of 0.70. The company has a quick ratio of 0.74, a current ratio of 1.58 and a debt-to-equity ratio of 0.72. Toro has a 52 week low of $67.64 and a 52 week high of $105.18.

Toro News Summary

Here are the key news stories impacting Toro this week:

• Positive Sentiment: Toro reported fiscal Q3 revenue of $1.23 billion, up 8.4% year over year and above the $1.19 billion consensus estimate. Adjusted earnings of $1.33 per share also exceeded analyst expectations and rose from $1.24 a year earlier. Toro Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: The company raised fiscal 2026 adjusted EPS guidance to $4.60-$4.65, from $4.50-$4.62, and increased its revenue-growth outlook to 6.3%-6.6%. The new earnings range is broadly in line with the $4.61 consensus estimate. Toro Reports Higher Earnings and Raises FY26 Outlook
• Positive Sentiment: Growth was broad-based, with Professional segment sales increasing 8.8% and Residential segment sales rising 8.6%. Gross margin improved to 34.1% from 33.7%, while Toro returned $110 million to shareholders during the quarter.
• Positive Sentiment: DA Davidson maintained a Buy rating and reduced its price target modestly to $115 from $117, still implying substantial upside from the referenced trading level.
• Neutral Sentiment: Although earnings and revenue beat estimates, reported GAAP diluted EPS was $0.81, reflecting the impact of items that distinguish it from the $1.33 adjusted EPS figure highlighted in market coverage. Toro Fiscal 2026 EPS Guidance
• Negative Sentiment: Insider activity was heavily weighted toward selling, including a substantial sale by Chairman and CEO Richard Olson. This may raise caution about management’s view of near-term valuation, despite the stronger operating results.

Insiders Place Their Bets

In other Toro news, VP Kurt Svendsen sold 6,600 shares of Toro stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $93.09, for a total transaction of $614,394.00. Following the completion of the sale, the vice president owned 12,166 shares of the company’s stock, valued at approximately $1,132,532.94. The trade was a 35.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Edric C. Funk sold 527 shares of the business’s stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $97.97, for a total value of $51,630.19. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 12,934 shares of company stock valued at $1,204,933. Insiders own 1.88% of the company’s stock.

Institutional Investors Weigh In On Toro

A number of large investors have recently bought and sold shares of TTC. Russell Investments Group Ltd. boosted its holdings in shares of Toro by 11.0% in the 3rd quarter. Russell Investments Group Ltd. now owns 125,215 shares of the company’s stock valued at $9,541,000 after acquiring an additional 12,380 shares during the last quarter. Campbell & CO Investment Adviser LLC increased its stake in shares of Toro by 425.6% in the fourth quarter. Campbell & CO Investment Adviser LLC now owns 64,783 shares of the company’s stock worth $5,100,000 after acquiring an additional 52,457 shares during the period. Captrust Financial Advisors raised its holdings in shares of Toro by 16.6% during the third quarter. Captrust Financial Advisors now owns 52,879 shares of the company’s stock worth $4,029,000 after purchasing an additional 7,511 shares during the last quarter. Empowered Funds LLC raised its holdings in shares of Toro by 9.8% during the first quarter. Empowered Funds LLC now owns 38,840 shares of the company’s stock worth $2,826,000 after purchasing an additional 3,464 shares during the last quarter. Finally, Horizon Investments LLC lifted its position in Toro by 88.4% during the third quarter. Horizon Investments LLC now owns 29,392 shares of the company’s stock valued at $2,229,000 after purchasing an additional 13,789 shares during the period. Hedge funds and other institutional investors own 87.95% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Robert W. Baird decreased their target price on Toro from $105.00 to $100.00 and set a “neutral” rating for the company in a research report on Friday, June 5th. Weiss Ratings upgraded Toro from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, August 4th. DA Davidson decreased their price objective on Toro from $117.00 to $115.00 and set a “buy” rating for the company in a report on Friday. Finally, Wall Street Zen lowered shares of Toro from a “strong-buy” rating to a “buy” rating in a research note on Saturday. One investment analyst has rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $101.67.

Toro Company Profile

The Toro Company (NYSE: TTC) specializes in the design, manufacture and marketing of a broad range of outdoor environment equipment for residential, commercial and professional markets. Its product portfolio includes lawn mowers, utility vehicles, snow throwers, irrigation systems and landscape maintenance equipment. Toro’s offerings span walk-behind and ride-on mowers, zero-turn radius mowers, snow blowers, sprinklers, drip irrigation products, spreaders and specialty turf maintenance machines tailored to golf courses, sports fields and municipal parks.

Founded in 1914 and headquartered in Bloomington, Minnesota, Toro has built a century-long legacy of innovation in the grounds-care industry.