Toll Brothers (NYSE:TOL) Posts Quarterly Earnings Results, Beats Expectations By $996.43 EPS

Key Points

• Toll Brothers reported quarterly earnings that beat Wall Street expectations, posting $999.00 EPS versus the consensus estimate of $2.57. The article says the company also delivered a 16.83% return on equity and a 12.26% net margin.
• The stock fell 2.5% on the day, trading at $123.85 despite the earnings report. Shares also remain below both the 50-day and 200-day moving averages, reflecting weak recent momentum.
• Toll Brothers raised its quarterly dividend to $0.26 per share from $0.25, implying a $1.04 annualized payout and a 0.8% yield. Analysts still rate the stock a “Moderate Buy” on average, with a target price of $164.44.

Toll Brothers (NYSE:TOL - Get Free Report) issued its quarterly earnings results on Tuesday. The construction company reported $999.00 earnings per share for the quarter, beating the consensus estimate of $2.57 by $996.43, Zacks reports. Toll Brothers had a return on equity of 16.83% and a net margin of 12.26%.

Toll Brothers Stock Down 2.5%

NYSE:TOL traded down $3.12 on Tuesday, hitting $123.85. The stock had a trading volume of 1,831,921 shares, compared to its average volume of 1,216,287. The business's fifty day moving average is $139.03 and its 200 day moving average is $141.70. The company has a market cap of $11.73 billion, a PE ratio of 8.85, a P/E/G ratio of 0.99 and a beta of 1.39. The company has a quick ratio of 0.62, a current ratio of 4.57 and a debt-to-equity ratio of 0.32. Toll Brothers has a 52 week low of $100.92 and a 52 week high of $168.36.

Toll Brothers Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, April 24th. Shareholders of record on Friday, April 10th were issued a $0.26 dividend. The ex-dividend date was Friday, April 10th. This is an increase from Toll Brothers's previous quarterly dividend of $0.25. This represents a $1.04 annualized dividend and a yield of 0.8%. Toll Brothers's dividend payout ratio is currently 7.43%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on TOL. Oppenheimer reissued an "outperform" rating and issued a $180.00 price target (up from $177.00) on shares of Toll Brothers in a research note on Thursday, February 19th. Citigroup upped their target price on Toll Brothers from $141.00 to $162.00 and gave the company a "neutral" rating in a research report on Thursday, February 26th. Citizens Jmp restated a "market outperform" rating and set a $175.00 target price on shares of Toll Brothers in a research report on Wednesday, February 18th. Seaport Research Partners restated a "neutral" rating on shares of Toll Brothers in a research report on Tuesday, April 7th. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of Toll Brothers in a research report on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Toll Brothers presently has an average rating of "Moderate Buy" and an average target price of $164.44.

More Toll Brothers News

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

• Positive Sentiment: Toll Brothers reported fiscal second-quarter results, and the headlines suggest the company beat expectations on earnings, which can support the stock if investors view it as a sign of resilient luxury-home demand. Toll Brothers Reports FY 2026 Second Quarter Results
• Positive Sentiment: Recent commentary says luxury homes are still selling despite a tough housing market, which is a favorable sign for Toll Brothers’ order trends, pricing power, and margins going into earnings. Luxury homes are selling in a tough market. That’s a good sign for Toll Brothers’ earnings.
• Positive Sentiment: Housing-data coverage noted that pending home sales for April could mark a third straight month of growth, a constructive backdrop for homebuilders like Toll Brothers. Housing Data Enters the Chat: NAHB, HD, TOL
• Neutral Sentiment: The company also announced new community openings in Georgia and California, which shows continued development activity but is unlikely to move the stock on its own. Toll Brothers Announces Model Home Grand Opening at Toll Brothers at South Main Community in Milpitas, California
• Neutral Sentiment: Analysts were expecting Q2 EPS of about $2.58 and revenue of $2.42 billion, so investors will likely focus on whether Toll Brothers can sustain margins and demand rather than just the headline earnings beat. Toll Brothers Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Negative Sentiment: The stock had been falling into earnings amid concerns about the housing backdrop and the possibility of a post-earnings selloff, reflecting cautious sentiment heading into the report. Will Toll Brothers Stock Break its Post-Earnings Curse?

Insider Activity at Toll Brothers

In other Toll Brothers news, Director Stephen F. East sold 1,000 shares of the stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $139.70, for a total value of $139,700.00. Following the transaction, the director owned 13,442 shares in the company, valued at approximately $1,877,847.40. This represents a 6.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Douglas C. Jr. Yearley sold 45,116 shares of the stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $160.42, for a total value of $7,237,508.72. Following the completion of the transaction, the chief executive officer owned 321,256 shares in the company, valued at approximately $51,535,887.52. The trade was a 12.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.37% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Compound Planning Inc. boosted its holdings in Toll Brothers by 5.1% in the fourth quarter. Compound Planning Inc. now owns 4,372 shares of the construction company's stock worth $591,000 after acquiring an additional 214 shares in the last quarter. TMB Capital Partners LLC purchased a new stake in shares of Toll Brothers in the fourth quarter worth approximately $240,000. Invesco Ltd. raised its stake in shares of Toll Brothers by 5.5% in the fourth quarter. Invesco Ltd. now owns 270,713 shares of the construction company's stock worth $36,606,000 after purchasing an additional 14,180 shares during the last quarter. Axxcess Wealth Management LLC purchased a new stake in shares of Toll Brothers in the fourth quarter worth approximately $203,000. Finally, Corient Private Wealth LLC raised its stake in shares of Toll Brothers by 95.5% in the fourth quarter. Corient Private Wealth LLC now owns 9,168 shares of the construction company's stock worth $1,240,000 after purchasing an additional 4,478 shares during the last quarter. Institutional investors own 91.76% of the company's stock.

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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