The 8% YoY revenue decline and 24% net income drop signal fundamental weakening despite a modest EPS beat. Watch for further margin compression and community count growth execution; the increased buyback may provide a floor but does not offset declining earnings. Monitor the housing market and mortgage rate environment for continued demand pressure.
Price Chart
Executive Summary
Toll Brothers reported Q3 2026 EPS of $2.97, a 1.5% beat vs. $2.93 consensus, but home sales revenues of $2.65B declined 8% YoY from $2.88B. Adjusted gross margin compressed 190bps to 25.6%, and net income fell 24% YoY to $280M, reflecting a challenging housing market. The company reaffirmed full-year guidance and increased its share repurchase target to $700M, but the YoY revenue and earnings decline makes this a bearish report despite the modest EPS beat and contract growth.
Key Financial Metrics
Key Facts
- EPS of $2.97 beat consensus of $2.93 by 1.5%
- Home sales revenues of $2.65B declined 8% YoY from $2.88B
- Net income fell 24% YoY to $280.1M from $369.6M
- Adjusted home sales gross margin compressed to 25.6% from 27.5% YoY
- Net signed contracts grew 5% YoY to $2.52B
- Backlog value declined 2% YoY to $6.24B
- Full-year guidance reaffirmed: ~$10.5B home sales revenues, 26.1% adjusted gross margin
- Share repurchase target increased from $650M to $700M for FY 2026
- SG&A as a % of home sales revenues rose to 10.0% from 8.8% YoY
- Quarter-end cash and equivalents $1.06B, down from $1.26B at FYE 2025
Financial Impact
Revenue down $230M YoY (-8%), net income down $89.5M (-24%), adjusted gross margin down 190bps
Risk Factors
- Further revenue and margin compression if housing demand weakens
- Rising SG&A as a percentage of revenue indicates operating deleverage
- Backlog value declining suggests future revenue headwinds
- Increased share repurchases reduce equity base but do not address operational decline
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3347263 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 18, 2026 6w ago | Press Release | $148.58 $134.32 | ▲ +9.60% | ▲ +7.65% | $136.29 (+8.27%) |
Jul 29, 2026 9w ago | Press Release | $150.03 $145.13 | ▲ +3.27% | ▲ +7.23% | $136.29 (+9.15%) |
May 19, 2026 19w ago | 8-K | $136.29 $149.66 | ▲ +9.81% | ▲ +9.85% | $136.29 (+0.00%) |
May 13, 2026 20w ago | 8-K | $131.46 $147.10 | ▲ +11.89% | ▲ +12.75% | $136.29 (+3.68%) |
Apr 21, 2026 23w ago | Press Release | $147.94 $124.14 | ▼ −16.09% | ▼ −19.25% | $136.29 (−7.87%) |
Mar 11, 2026 29w ago | Press Release | $137.95 $140.01 | ▲ +1.49% | ▼ −0.48% | $136.29 (−1.20%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access