Toll Brothers (TOL) Earnings Date & Reports

Key Takeaways

• Toll Brothers reported net income of $260.6 million and diluted earnings per share of $2.72 for the second quarter of fiscal 2026.
• Home sales revenue reached $2.51 billion from 2,491 deliveries, with net signed contract value rising to $2.81 billion.
• Adjusted home sales gross margin came in at 26.2%, exceeding company guidance, while SG&A expenses as a percentage of revenue improved to 10.3%.
• The company raised its full-year fiscal 2026 guidance across deliveries, average delivered price, and margins based on year-to-date performance.
• Backlog stood at $6.32 billion with 5,394 homes, and Toll Brothers repurchased approximately 1.2 million shares for $175.4 million.

Earnings Context and Why It Matters

Toll Brothers, the nation’s leading luxury homebuilder, operates on a fiscal year ending October 31. Its second quarter of fiscal 2026 ended April 30, 2026. This report arrives amid ongoing housing market challenges, including elevated mortgage rates and affordability pressures. Investors closely monitor these results for insights into demand trends, margin trends, and forward guidance, as Toll Brothers’ performance often serves as a bellwether for the broader residential construction sector and consumer spending on high-end homes.

Reported Results

Toll Brothers reported home sales revenue of $2.51 billion for the second quarter of fiscal 2026, down from $2.71 billion a year earlier, reflecting 2,491 deliveries compared with 2,899 in the prior-year quarter. Net income totaled $260.6 million, or $2.72 per diluted share, versus $352.4 million, or $3.50 per share, last year. Adjusted home sales gross margin reached 26.2%, 70 basis points above guidance, while selling, general, and administrative expenses improved to 10.3% of home sales revenue, 40 basis points better than expected. Net signed contracts rose to $2.81 billion from $2.60 billion year over year.

AI Screener

The AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. AI Screener

Market Reaction and Investor Sentiment

Shares of Toll Brothers traded higher following the release of second-quarter results on May 19, 2026, as investors focused on the company’s ability to exceed internal guidance on margins and expenses while raising its full-year outlook. The positive reaction reflected relief that demand held up better than feared despite a challenging interest-rate environment, with particular attention paid to the increase in net signed contracts and the company’s continued share-repurchase activity.

Forward Outlook and Key Factors to Monitor

Management raised its full-year fiscal 2026 guidance, now expecting deliveries of 10,400 to 10,700 homes, an average delivered price between $985,000 and $1,000,000, and an adjusted home sales gross margin of 26.10%. For the third quarter, the company projects 2,600 to 2,700 deliveries at an average price of $965,000 to $985,000.

Investors will watch upcoming housing market indicators, including mortgage rates and consumer confidence, for signs of sustained demand. Additional factors include the pace of new community openings, land acquisition costs, and any updates on margin pressure from labor or material expenses.

Continued execution on the company’s land strategy and potential further capital returns through dividends or buybacks remain important areas of focus heading into the second half of the fiscal year.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.