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Toronto Dominion Bank (TSE:TD)
TSX:TD
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Toronto Dominion Bank (TD) AI Stock Analysis

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TSE:TD

Toronto Dominion Bank

(TSX:TD)

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Neutral 61 (OpenAI - Gpt-5.6Sol)
Rating:61Neutral
Price Target:
C$177.00
â–²(7.44% Upside)
Action:Reiterated
Date:08/28/26
The score is primarily supported by a strong, confident earnings-call outlook (record results, improving credit, margin expansion, and cost/AI execution) but is held back by softer recent financial-statement momentum (TTM revenue decline, margin compression, high leverage, and volatile cash-flow history). Technical signals are neutral with limited near-term momentum, and valuation (P/E ~19.7 with a ~2.58% yield) appears average rather than compelling.
Positive Factors
Diversified business growth
TD’s broad mix across Canadian and U.S. banking, wealth, insurance and wholesale services supports earnings resilience. Recent growth in deposits, lending, wealth accounts and wholesale revenue provides multiple durable avenues for client and revenue expansion.
Negative Factors
Recent revenue and margin contraction
The recent contraction in revenue and profitability shows that earnings momentum has not been consistently sustained. Continued pressure on spreads, fees or business volumes could limit the bank’s ability to convert its strong quarterly performance into durable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business growth
TD’s broad mix across Canadian and U.S. banking, wealth, insurance and wholesale services supports earnings resilience. Recent growth in deposits, lending, wealth accounts and wholesale revenue provides multiple durable avenues for client and revenue expansion.
Read all positive factors

Toronto Dominion Bank (TD) vs. iShares MSCI Canada ETF (EWC)

Toronto Dominion Bank Business Overview & Revenue Model

Company Description
The Toronto-Dominion Bank, or TD, delivers an extensive array of financial products and services to clients across Canada, the United States, and on a global scale. Its business operations are segmented into three primary divisions: Canadian Retai...
How the Company Makes Money
TD primarily makes money by earning net interest income and generating non-interest (fee-based and trading-related) revenue across its business lines. 1) Net interest income (spread-based revenue): A core driver of TD’s earnings is the difference...

Toronto Dominion Bank Earnings Call Summary

Earnings Call Date:Aug 27, 2026
(Q3-2026)
|
% Change Since: |
Next Earnings Date:Dec 03, 2026
Earnings Call Sentiment Positive
The call conveyed strong positive momentum across multiple businesses with record earnings, expanding margins, improving credit metrics and clear execution on strategic initiatives (AI, branch expansion, wealth/wholesale growth). The primary headwinds are execution and cost of the U.S. AML remediation program, trade/policy uncertainty and near-term expense pressure from card conversion and investments. Overall, highlights materially outweigh the challenges, with management signaling confidence in capital flexibility and medium-term targets.
Positive Updates
Record Earnings and EPS
Reported record net earnings of $4.7 billion and record diluted EPS of $2.77; total revenue grew 8% year-over-year.
Negative Updates
Ongoing U.S. AML Remediation and Associated Costs
U.S. AML remediation remains the top priority under consent orders; expected remediation expense for the year is approximately $550 million and the consent order is still in place, representing regulatory and execution risk despite progress.
Read all updates
Q3-2026 Updates
Negative
Record Earnings and EPS
Reported record net earnings of $4.7 billion and record diluted EPS of $2.77; total revenue grew 8% year-over-year.
Read all positive updates
Company Guidance
TD's guidance emphasized disciplined growth and capital management: total PCLs are now expected near the lower end of the prior 40–50 bps FY‑2026 range, with the bank’s ACL at ~96 bps (including ~US$500M reserved for policy/trade risks); fiscal 2026 expense growth is targeted at 3–4% (U.S. Banking mid‑single‑digit, with U.S. AML remediation ~US$550M); U.S. Banking net income is expected at ~US$2.9B for FY‑2026; net interest margins are expected to modestly increase in Q4 (Canadian NIM rose 3 bps q/q this quarter; U.S. NIM was 3.47%, +6 bps q/q); three quarters into FY‑26 TD has essentially hit its $200M AI value target; the bank remains on track for $2.0–$2.5B medium‑term structural cost reductions (already delivered $900M in FY‑26) with an efficiency ratio net of ISE of 55.2% (wealth 53%); ROE was 16% this quarter and TD expects to significantly outperform its 6–8% EPS growth and 13% ROE targets for FY‑26 if macro conditions hold; CET1 was 14.3% at quarter end and TD expects to reach ~13% CET1 by H2 FY‑2027 (or end FY‑2027) — potentially returning over $13B of capital in FY‑2027 — and plans to open 100 new U.S. branches by end of calendar 2028.

Toronto Dominion Bank Financial Statement Overview

Summary
Income statement trends are mixed: TTM revenue declined (-11.8%) and margins compressed versus 2025, though profitability remains solid (TTM net income ~$16.2B) and improved from the weaker 2024 level. The balance sheet is large and earnings-supportive, but structurally high leverage (debt-to-equity ~5.6) and cooling ROE (~11.9% TTM vs ~16.1% in 2025) weigh on quality. Cash flow is currently strong (TTM OCF ~$26.0B; FCF ~$23.5B; FCF/net income ~0.85) but historically volatile with deeply negative years, reducing confidence in consistency.
Income Statement
58
Neutral
Balance Sheet
49
Neutral
Cash Flow
55
Neutral
BreakdownTTMOct 2025Oct 2024Oct 2023Oct 2022Oct 2021
Income Statement
Total Revenue112.77B115.84B119.17B102.25B59.44B47.72B
Gross Profit61.27B56.78B52.00B48.59B44.70B42.49B
EBITDA21.62B25.81B12.86B14.80B22.19B19.20B
Net Income16.19B20.54B8.84B10.63B17.43B14.30B
Balance Sheet
Total Assets2.11T2.09T2.06T1.96T1.92T1.73T
Cash, Cash Equivalents and Short-Term Investments6.81B156.06B230.49B116.51B156.98B194.67B
Total Debt297.86B663.58B662.56B568.66B502.06B400.86B
Total Liabilities1.98T1.97T1.95T1.84T1.81T1.63T
Stockholders Equity127.02B127.83B115.16B112.07B111.38B99.82B
Cash Flow
Free Cash Flow23.46B-71.79B52.76B-67.15B37.49B49.00B
Operating Cash Flow25.99B-69.65B54.94B-65.30B38.95B50.13B
Investing Cash Flow-23.41B86.19B-45.42B76.23B-31.89B-45.27B
Financing Cash Flow-1.34B-15.50B-9.81B-12.85B-4.82B-5.04B

Toronto Dominion Bank Technical Analysis

Technical Analysis Sentiment
Positive
Last Price164.75
Price Trends
50DMA
168.90
Negative
100DMA
160.54
Positive
200DMA
143.56
Positive
Market Momentum
MACD
-0.06
Negative
RSI
51.63
Neutral
STOCH
84.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TD, the sentiment is Positive. The current price of 164.75 is below the 20-day moving average (MA) of 167.56, below the 50-day MA of 168.90, and above the 200-day MA of 143.56, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 51.63 is Neutral, neither overbought nor oversold. The STOCH value of 84.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TD.

Toronto Dominion Bank Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
C$150.81B15.5115.44%2.57%0.14%26.17%
70
Outperform
C$404.17B18.3316.11%2.26%4.67%19.97%
68
Neutral
C$159.80B16.7911.41%3.42%-3.29%43.84%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
65
Neutral
C$84.39B17.9914.36%2.29%7.97%17.60%
64
Neutral
C$169.24B19.7410.58%2.75%-1.74%7.63%
61
Neutral
C$284.24B17.9712.83%2.57%-10.53%-20.00%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TD
Toronto Dominion Bank
168.24
68.28
68.31%
TSE:BMO
Bank Of Montreal
242.76
73.10
43.09%
TSE:BNS
Bank Of Nova Scotia
129.65
45.11
53.36%
TSE:CM
Canadian Bank of Commerce
162.75
58.24
55.73%
TSE:RY
Royal Bank Of Canada
291.48
97.10
49.95%
TSE:NA
National Bank of Canada
217.91
76.04
53.60%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 28, 2026