GET DAILY SIGNALSToronto-Dominion Bank (TD) Delivers +21% Adjusted EPS Growth in Q2
Key Takeaways
- Reported diluted earnings per share reached $2.43 for the quarter ended April 30, 2026, compared with $6.27 a year earlier that included a large gain on the sale of Charles Schwab shares.
- Adjusted diluted earnings per share rose 21% year-over-year to $2.38, with adjusted net income increasing 15% to $4.168 billion.
- Canadian Personal and Commercial Banking, Wealth Management and Insurance, and Wholesale Banking each delivered record quarterly earnings.
- U.S. Banking showed momentum with adjusted net income up 8% year-over-year on a reported basis, supported by core lending growth.
- The bank raised its quarterly dividend to $1.12 per share from $1.08 and reported a Common Equity Tier 1 (CET1) capital ratio of 14.3%.
- Revenue totaled $15.80 billion, down from $22.94 billion a year ago due to the absence of the prior Schwab gain.
Earnings Context and Why It Matters
Toronto-Dominion Bank reports results on a fiscal year ending October 31, with the second quarter covering the three months ended April 30. This report provides investors with an early read on 2026 performance following the bank’s U.S. balance sheet restructuring and the completed sale of its Schwab stake. Strong adjusted results across core Canadian and wholesale businesses, combined with continued progress on U.S. remediation efforts, signal operational resilience amid moderating credit loss provisions and disciplined capital management. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
Reported diluted earnings per share for the second quarter were $2.43, down from $6.27 in the same period last year due to the one-time Schwab gain in the prior year. Adjusted diluted earnings per share increased 21% to $2.38 from $1.97. Reported net income totaled $4.251 billion versus $11.129 billion a year ago, while adjusted net income rose 15% to $4.168 billion from $3.626 billion. Revenue declined to $15.80 billion from $22.94 billion, reflecting the absence of the Schwab-related gain. The bank exceeded analyst expectations on an adjusted basis and raised its quarterly dividend to $1.12 per share. Key items of note included amortization of acquired intangibles and adjustments related to the terminated First Horizon acquisition and U.S. strategic cards portfolio.
Market Reaction and Investor Sentiment
Shares of TD rose modestly following the release, reflecting investor focus on the solid adjusted earnings beat and dividend increase despite the year-over-year reported decline tied to the prior Schwab gain. Sentiment remained constructive on the bank’s record segment results and capital strength, with analysts highlighting positive operating leverage and progress on U.S. priorities as key positives heading into the remainder of fiscal 2026.
Using AI Tools to Track Segment Performance
One thing that stands out when reviewing these results is the consistency across the bank’s core Canadian operations and wholesale businesses. I turned to Tickeron’s AI tools to quickly scan peer banks and confirm how TD’s adjusted growth stacks up against sector trends. From what I see, the combination of record earnings in Canadian Personal and Commercial Banking, Wealth Management and Insurance, and Wholesale Banking, alongside U.S. lending momentum, gives a clearer picture of underlying strength.
Forward Outlook and Key Factors to Monitor
Investors will watch for continued execution on U.S. anti-money laundering remediation, which remains the bank’s top priority. Management highlighted ongoing investments in talent, innovation, and artificial intelligence, alongside efforts to simplify operations and restructure the cost base.
Segment performance offers additional visibility. Canadian Personal and Commercial Banking continues to benefit from loan and deposit growth plus higher margins. Wealth Management and Insurance saw record assets and new client tools, while Wholesale Banking delivered strong revenue across Global Markets and Corporate and Investment Banking.
Broader factors include credit loss trends, U.S. lending momentum in middle-market and credit card portfolios, and any updates on capital return strategies such as share buybacks. The Common Equity Tier 1 ratio of 14.3% provides flexibility for future actions. I’m watching this closely as the bank moves through the second half of the year.
Disclaimer
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Disclaimers and LimitationsContributor
Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
TD in upward trend: 10-day moving average crossed above 50-day moving average on October 22, 2026
The 10-day moving average for TD crossed bullishly above the 50-day moving average on October 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 64%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
TD moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +1.15% 3-day Advance, the price is estimated to grow further. Considering data from situations where TD advanced for three days, in 175 of 345 cases, the price rose further within the following month. The odds of a continued upward trend are 51%.
The Aroon Indicator entered an Uptrend today. In 197 of 364 cases where TD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 54%.
Bearish Trend Analysis
The 10-day RSI Indicator for TD moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In 17 of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at 44%.
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TD as a result. In 34 of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 44%.
The Moving Average Convergence Divergence Histogram (MACD) for TD turned negative on November 06, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In 27 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 53%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 50%.
TD broke above its upper Bollinger Band on October 21, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 3 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 13 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 24 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 20, placing this stock worse than average.
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. TD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 66 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.757) is normal, around the industry mean (1.500). P/E Ratio (13.063) is within average values for comparable stocks, (11.703). Projected Growth (PEG Ratio) (1.006) is also within normal values, averaging (2.139). Dividend Yield (0.026) settles around the average of (0.035) among similar stocks. P/S Ratio (4.318) is also within normal values, averaging (3.867).
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