Toll Brothers (TLK) Q3 2026 Earnings Report

The call conveyed a largely positive tone: the company beat both revenue and earnings guidance, improved margins modestly versus guidance, increased share repurchases, grew selling communities and maintained a strong balance sheet with lower leverage and strong liquidity. Management acknowledged persistent macro headwinds — elevated mortgage rates, muted consumer confidence, regional softness and some input-cost pressure — but emphasized disciplined pricing, a resilient luxury move-up customer base, reduced finished spec inventory, and operational efficiency. Given the scale and significance of the beats, upgraded guidance items, capital return increase and balance sheet improvements relative to the manageable set of operational and market challenges, the overall message was optimistic about the company’s positioning and ability to deliver through a tough market and outperform when conditions improve.

Toll Brothers reaffirmed and tightened guidance for fiscal 2026, forecasting Q4 deliveries of 3,450–3,550 homes with an average delivered price of $995,000–$1.005 million and a Q4 adjusted gross margin of ~26.0%; for the full year they now expect 10,500–10,600 settlements, average delivered price $995,000–$1.0 million (a midpoint lift that adds roughly $53 million of revenue), home sales revenue of ~ $10.5 billion, a full‑year adjusted gross margin of 26.1%, SG&A of ~10.1% (Q4 SG&A ~8.1%), interest and cost of sales of ~1.1%, other/unconsolidated/land income of ~$30 million in Q4 and ~$120 million for the year, a full‑year tax rate of ~25.2% (Q4 ~26.0%), weighted average share count of ~94 million in Q4/~95 million for the year, increased share repurchases to $700 million (up from $650 million; $433 million completed through Q3), expected year‑end community count of 480–490 (8%–10% growth vs FY25), and continued strong liquidity (~$3.3 billion) and low leverage (net debt‑to‑capital ~15.6%).