Toll Brothers (NYSE:TOL) Issues Earnings Results

Key Points

• Toll Brothers beat quarterly expectations, reporting EPS of $2.97 versus the $2.93 consensus and revenue of $2.66 billion versus estimates of $2.62 billion.
• Shares fell $2.94 to $142.51 following the results. The company also declared a quarterly dividend of $0.26 per share, equivalent to a 0.7% annualized yield.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $164.88, though higher mortgage rates and a legal dispute that could delay an Ann Arbor project pose risks.

Toll Brothers (NYSE:TOL - Get Free Report) announced its quarterly earnings data on Tuesday. The construction company reported $2.97 EPS for the quarter, beating the consensus estimate of $2.93 by $0.04, FiscalAI reports. The business had revenue of $2.66 billion during the quarter, compared to analyst estimates of $2.62 billion. Toll Brothers had a return on equity of 15.47% and a net margin of 11.66%.

Toll Brothers Stock Performance

Shares of NYSE TOL traded down $2.94 during trading on Tuesday, reaching $142.51. 1,548,705 shares of the company traded hands, compared to its average volume of 1,150,303. The firm has a 50 day simple moving average of $151.85 and a 200-day simple moving average of $146.43. The company has a quick ratio of 0.59, a current ratio of 4.67 and a debt-to-equity ratio of 0.33. The stock has a market capitalization of $13.32 billion, a PE ratio of 10.78, a P/E/G ratio of 1.23 and a beta of 1.35. Toll Brothers has a 52-week low of $123.14 and a 52-week high of $168.36.

Toll Brothers Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Friday, July 10th. Toll Brothers's dividend payout ratio (DPR) is presently 7.87%.

Trending Headlines about Toll Brothers

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

• Positive Sentiment: Analysts expect relatively strong quarterly results, with projected earnings per share of $2.93 and revenue of approximately $2.62 billion. Better-than-expected results or an upbeat outlook could support the stock. Wall Street Forecasters Revise Toll Brothers Expectations
• Positive Sentiment: Toll Brothers’ affluent customer base and roughly $1 million average home price may provide some insulation from broader housing weakness, making luxury-home demand a key potential advantage in the earnings report. Toll Brothers Earnings Will Offer Read on Luxury Home Demand
• Positive Sentiment: New luxury communities in Franklin, Tennessee, and Reno, Nevada, expand Toll Brothers’ pipeline and indicate continued development activity, although the near-term financial impact is likely limited. Franklin Ridge Model Home Grand Opening Rivercrest Model Home Grand Opening
• Neutral Sentiment: Analyst opinions and price-target revisions are mixed ahead of the report. Investors will likely watch orders, cancellations, margins, deliveries, and management’s guidance more closely than the headline EPS figure. Toll Brothers Q3 2026 Earnings Preview
• Negative Sentiment: Rising Treasury yields could push mortgage rates higher, potentially reducing affordability and weighing on demand across home builders, including Toll Brothers. Home Builder Stocks and Bond Yields
• Negative Sentiment: A judge temporarily blocked Toll Brothers from building on a disputed easement near Ann Arbor, creating a potential project-delay and legal-risk overhang. Judge Blocks Toll Brothers Construction Near Ann Arbor

Wall Street Analyst Weigh In

TOL has been the subject of a number of recent research reports. Keefe, Bruyette & Woods raised shares of Toll Brothers from a "market perform" rating to an "outperform" rating and lifted their price target for the company from $158.00 to $161.00 in a research report on Tuesday, June 9th. Evercore reiterated an "outperform" rating and set a $185.00 target price on shares of Toll Brothers in a report on Thursday, May 21st. Barclays upped their price target on Toll Brothers from $115.00 to $122.00 and gave the stock an "underweight" rating in a research note on Tuesday, July 14th. Oppenheimer cut Toll Brothers from an "outperform" rating to a "market perform" rating in a research note on Tuesday, June 9th. Finally, Piper Sandler cut Toll Brothers from an "overweight" rating to a "neutral" rating in a research note on Tuesday, June 9th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $164.88.

Insider Buying and Selling

In related news, Chairman Douglas C. Jr. Yearley sold 77,957 shares of the stock in a transaction that occurred 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 owned 321,256 shares in the company, valued at $50,302,264.48. This represents a 19.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Robert Parahus sold 7,500 shares of the firm'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 transaction of $1,122,450.00. Following the completion of the sale, the chief operating officer owned 23,457 shares in the company, valued at $3,510,574.62. This represents a 24.23% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 1.37% of the company's stock.

Institutional Investors Weigh In On Toll Brothers

Hedge funds have recently added to or reduced their stakes in the stock. Sivia Capital Partners LLC purchased a new position in shares of Toll Brothers in the 2nd quarter worth $705,000. Brown Advisory Inc. lifted its holdings in Toll Brothers by 4.6% in the second quarter. Brown Advisory Inc. now owns 4,212 shares of the construction company's stock valued at $481,000 after acquiring an additional 186 shares during the period. NewEdge Advisors LLC lifted its holdings in Toll Brothers by 5.8% in the second quarter. NewEdge Advisors LLC now owns 6,203 shares of the construction company's stock valued at $708,000 after acquiring an additional 340 shares during the period. Sei Investments Co. boosted its position in Toll Brothers by 164.9% in the second quarter. Sei Investments Co. now owns 38,556 shares of the construction company's stock worth $4,400,000 after purchasing an additional 24,001 shares during the last quarter. Finally, Treasurer of the State of North Carolina boosted its position in Toll Brothers by 1.5% in the second quarter. Treasurer of the State of North Carolina now owns 46,208 shares of the construction company's stock worth $5,274,000 after purchasing an additional 700 shares during the last quarter. 91.76% of the stock is currently owned by hedge funds and other institutional investors.

Toll Brothers Company Profile

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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