Zacks Research Expects Increased Earnings for Toll Brothers

Key Points

• Zacks Research raised Toll Brothers’ FY2026 EPS estimate to $12.70 from $12.63, while projecting FY2027 EPS of $14.27. However, it lowered several quarterly estimates and cut its FY2028 forecast to $16.74 from $16.84.
• Toll Brothers exceeded quarterly expectations, reporting $2.97 EPS versus the $2.93 consensus and $2.66 billion in revenue versus $2.62 billion expected. Revenue still declined 9.7% year over year.
• Analyst sentiment remains favorable, with 14 Buy, four Hold, and one Sell rating and a consensus price target of $167.27; institutional investors own 91.76% of the company’s shares.

Toll Brothers Inc. (NYSE:TOL - Free Report) - Research analysts at Zacks Research boosted their FY2026 earnings per share (EPS) estimates for shares of Toll Brothers in a note issued to investors on Tuesday, September 8th. Zacks Research analyst Team now anticipates that the construction company will post earnings of $12.70 per share for the year, up from their prior forecast of $12.63. The consensus estimate for Toll Brothers' current full-year earnings is $12.81 per share. Zacks Research also issued estimates for Toll Brothers' Q4 2026 earnings at $4.82 EPS, Q1 2027 earnings at $1.88 EPS, Q2 2027 earnings at $3.16 EPS, Q3 2027 earnings at $3.56 EPS, Q4 2027 earnings at $5.68 EPS, FY2027 earnings at $14.27 EPS, Q1 2028 earnings at $2.30 EPS, Q2 2028 earnings at $3.85 EPS, Q3 2028 earnings at $4.45 EPS and FY2028 earnings at $16.74 EPS.

TOL has been the topic of several other reports. Argus set a $170.00 price target on shares of Toll Brothers in a research report on Tuesday, June 2nd. Weiss Ratings raised shares of Toll Brothers from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, July 17th. Oppenheimer lowered Toll Brothers from an "outperform" rating to a "market perform" rating in a research note on Tuesday, June 9th. Citigroup raised their target price on Toll Brothers from $176.00 to $179.00 and gave the stock a "buy" rating in a report on Friday, August 21st. Finally, Truist Financial lifted their target price on Toll Brothers from $165.00 to $170.00 and gave the company a "buy" rating in a research report on Thursday, August 20th. Fourteen investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $167.27.

Toll Brothers Stock Performance

Shares of NYSE TOL opened at $136.56 on Wednesday. Toll Brothers has a 12-month low of $123.14 and a 12-month high of $168.36. The firm has a market capitalization of $12.58 billion, a price-to-earnings ratio of 10.96, a price-to-earnings-growth ratio of 1.14 and a beta of 1.34. The company has a current ratio of 4.53, a quick ratio of 0.55 and a debt-to-equity ratio of 0.32. The firm has a 50 day moving average of $148.81 and a 200 day moving average of $145.24.

Toll Brothers (NYSE:TOL - Get Free Report) last issued its quarterly earnings data on Tuesday, August 18th. The construction company reported $2.97 earnings per share for the quarter, topping the consensus estimate of $2.93 by $0.04. The firm had revenue of $2.66 billion for the quarter, compared to analysts' expectations of $2.62 billion. Toll Brothers had a net margin of 11.14% and a return on equity of 14.21%. The business's quarterly revenue was down 9.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.73 EPS.

Institutional Investors Weigh In On Toll Brothers

Large investors have recently made changes to their positions in the company. California State Teachers Retirement System raised its holdings in shares of Toll Brothers by 16,116.7% during the 2nd quarter. California State Teachers Retirement System now owns 17,926,118 shares of the construction company's stock worth $2,953,328,000 after acquiring an additional 17,815,577 shares in the last quarter. BlackRock Inc. bought a new position in shares of Toll Brothers in the 2nd quarter valued at about $1,610,696,000. Price T Rowe Associates Inc. MD grew its position in Toll Brothers by 2,067.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 3,303,915 shares of the construction company's stock worth $446,756,000 after acquiring an additional 3,151,509 shares in the last quarter. Norges Bank bought a new stake in Toll Brothers during the fourth quarter worth approximately $168,312,000. Finally, Bamco Inc. NY bought a new stake in Toll Brothers during the second quarter worth approximately $166,250,000. 91.76% of the stock is owned by institutional investors.

Insider Activity

In other Toll Brothers news, COO Robert Parahus sold 7,500 shares of the company's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $149.66, for a total value of $1,122,450.00. Following the completion of the transaction, the chief operating officer directly owned 23,457 shares in the company, valued at $3,510,574.62. This represents a 24.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Chairman Douglas C. Jr. Yearley sold 77,957 shares of the firm's stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $156.58, for a total transaction of $12,206,507.06. Following the transaction, the chairman directly owned 321,256 shares of the company's stock, valued at $50,302,264.48. The trade was a 19.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.37% of the company's stock.

Toll Brothers Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were paid a $0.26 dividend. The ex-dividend date of this dividend was Friday, July 10th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.8%. Toll Brothers's dividend payout ratio is 8.35%.

Key Headlines Impacting Toll Brothers

Here are the key news stories impacting Toll Brothers this week:

• Positive Sentiment: Zacks raised Toll Brothers’ FY2026 EPS estimate to $12.70 and FY2027 estimate to $14.27, indicating modestly improved expectations for annual earnings. The firm also increased Q3 2027 EPS to $3.56 and Q4 2027 EPS to $5.68. Toll Brothers analyst estimates
• Neutral Sentiment: Toll Brothers announced a new building release at Iron Creek, a luxury townhome community in Charlotte, North Carolina. The four-story homes feature rooftop terraces and expand the company’s presence in the Charlotte market, but the announcement does not provide sales or earnings guidance. Iron Creek building release
• Negative Sentiment: Zacks reduced EPS forecasts for Q4 2026, Q1-Q2 2027, Q1 2028, Q2 2028 and Q3 2028. Its FY2028 estimate also fell to $16.74 from $16.84. These cuts may weigh on sentiment because they point to softer earnings expectations in several reporting periods, despite the increases elsewhere.

About Toll Brothers

Toll Brothers, Inc is a publicly traded homebuilding company that focuses on designing and constructing luxury residential properties. The company's core business encompasses a broad range of housing products, including custom single-family homes, upscale condominium communities and rental apartment ventures. Toll Brothers emphasizes high-end finishes and architectural craftsmanship, positioning itself in the premium segment of the U.S. housing market.

In addition to traditional homebuilding, Toll Brothers operates specialized divisions to address evolving consumer preferences.

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