The second consecutive beat-and-raise quarter confirms accelerating demand across both Professional and Residential segments. With raised guidance implying ~8% EPS growth at the midpoint and expanding margins, the stock should re-rate higher. Monitor the earnings call for commentary on tariff exposure and consumer sentiment in the Residential segment.
Price Chart
Executive Summary
Toro Co. reported strong fiscal Q2 2026 results with net sales up 8.1% YoY to $1.42B and adjusted EPS up 12.7% YoY to $1.60, exceeding expectations. The company raised full-year guidance for both net sales growth (4.0%-6.5% from 3.0%-6.5%) and adjusted EPS ($4.50-$4.62 from $4.40-$4.60), driven by broad-based demand and margin expansion. This marks a second consecutive beat and raise, reinforcing positive momentum.
Key Financial Metrics
Key Facts
- Q2 net sales $1.42B, up 8.1% YoY (organic +5.7%)
- Reported EPS $1.50, up 9.5% YoY; adjusted EPS $1.60, up 12.7% YoY
- Professional segment sales +9.1% to $1.11B; Residential segment sales +4.4% to $310.4M
- Gross margin expanded 80bps to 33.9%; adjusted gross margin +110bps to 34.5%
- Full-year guidance raised: net sales growth 4.0%-6.5% (prev. 3.0%-6.5%), adj. EPS $4.50-$4.62 (prev. $4.40-$4.60)
- Returned $228M to shareholders YTD via dividends and buybacks
- Free cash flow $265.5M in H1, up from $84.7M YoY
Financial Impact
Q2 revenue beat consensus by ~$35M (2.5%); adjusted EPS $1.60 vs consensus $1.50 (6.7% beat). Full-year adj. EPS guidance midpoint raised to $4.56 from $4.50.
Risk Factors
- Inflationary pressures on materials, manufacturing, and freight costs persist
- Residential segment faces macro uncertainty and consumer sentiment headwinds
- Geopolitical and tariff dynamics could impact guidance achievability
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000737758-26-000016 |
| Document: ttc-20260604.htm | 0000737758-26-000016 |
| Document: 0000737758-26-000016-index-headers.html | 0000737758-26-000016 |
| Document: 0000737758-26-000016-index.html | 0000737758-26-000016 |
| Document: 0000737758-26-000016.txt | 0000737758-26-000016 |
| 8-K Data (Synthetic) | 0000737758-26-000016 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 3, 2026 29d ago | 8-K | $92.37 $92.72 | ▲ +0.38% | ▲ +1.53% | $98.65 (+6.80%) |
Jun 29, 2026 13w ago | Insider Cluster | $97.42 $97.06 | ▼ −0.37% | ▼ −0.97% | $98.65 (+1.26%) |
Jun 17, 2026 15w ago | Insider Cluster | $90.87 $94.78 | ▲ +4.30% | ▲ +5.34% | $98.65 (+8.56%) |
Jun 15, 2026 15w ago | Insider Cluster | $88.84 $92.19 | ▲ +3.77% | ▲ +5.15% | $98.65 (+11.04%) |
Jun 4, 2026 17w ago | 8-K | $88.83 $92.21 | ▲ +3.81% | ▲ +6.36% | $98.65 (+11.05%) |
Mar 10, 2026 29w ago | Insider Cluster | $98.51 $94.51 | ▼ −4.06% | ▼ −3.16% | $98.65 (+0.14%) |
US Market Status
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