EarningsQ3 2026 Earnings Report
MX:TOL Q3 2026 EPS Results
Actual EPS$53.74
Consensus EPS$53.09
Beat/MissBeat by +$0.65
One Year Ago EPS$67.50
MX:TOL Q3 2026 Revenue Results
Actual Revenue$48.11B
Expected Revenue$47.38B
Beat/MissBeat by +$731.18M
YoY Revenue Growth-9.72%
Earnings Announcement Details
QuarterQ3 2026
Date08/18/2026
TimeAfter Close
Conference CallTuesday, August 18, 2026
MX:TOL Upcoming Earnings
Toll Brothers's next earnings date is estimated for December 14, 2026, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:TOL Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
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.Company Guidance
Strong Quarterly Deliveries and Revenue
Delivered 2,662 homes and generated $2.65 billion of home sales revenue in Q3, beating the midpoint of guidance on both units and dollars.
Earnings and Margin Outperformance
Generated $280.1 million of net earnings ($2.97 per diluted share) and an adjusted gross margin of 25.6%, 35 basis points better than guidance.
Order Growth and Improved Contract Activity
Signed 2,508 net agreements in the quarter, up 5% in units and 4% in dollars year-over-year; net signed contracts increased 5% versus prior-year quarter.
Price Realization and Guidance Upgrade
Average delivered price in the quarter was approximately $996,000 (above the high end of guidance); full-year settlements range narrowed to 10,500–10,600 homes and full-year average delivered price increased to $995,000–$1,000,000, expected to add ~ $53 million of revenue versus prior guidance.
Community Count Growth and Land Position
Selling from 471 communities vs. 420 a year ago (≈12% increase); company remains on track for 8%–10% community count growth in fiscal 2026 and expects similar growth into fiscal 2027; owns/controls ~75,500 lots (58% optioned) and spent ~$452 million on land in the quarter.
Capital Returns and Share Repurchases Increased
Returned ~ $231 million to stockholders in the quarter (dividends and repurchases) and increased full-year share repurchase guidance to $700 million (up from $650 million); completed $433 million of repurchases through Q3.
Strong Liquidity and Lower Leverage
Ended the quarter with approximately $3.3 billion of liquidity (≈$1.1 billion cash and $2.2 billion revolver availability); net debt-to-cap ratio improved to 15.6% from 19.3% a year ago (down 3.7 percentage points).
Inventory and Operational Efficiency Improvements
Reduced finished spec inventory to an average of 1.9 homes per community (down from 2.0 in Q2 and 2.8 at start of FY26) and maintained build-to-order cycle time ~9 months; upgrades, structural options and lot premiums averaged $207,000 (≈24% of average base sales price), accretive to margins.
Lower Cancellation Rates
Cancellation rate was 2.6% of beginning-quarter backlog (vs. 3.2% prior year) and 5.4% as a percentage of signed contracts (vs. 7.5% prior year), highlighting strong buyer attachment and commitment.
MX:TOL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed