Overview
Toll Brothers Inc. (NYSE:TOL) posted third‑quarter 2026 results that beat analyst forecasts on earnings per share and revenue, yet revenue declined 8% year‑over‑year, leading to a modest 0.4% dip in the share price after the market close.
Financial Performance
- Adjusted earnings per share were $2.97, exceeding the consensus estimate of $2.92 by $0.05. Net income was $280.1 million, or $2.97 per diluted share, down from $369.6 million, or $3.73 per diluted share, in the comparable quarter last year.
- Revenue totaled $2.66 billion, topping the $2.62 billion consensus, but representing an 8% decline from $2.88 billion recorded in the same quarter of fiscal 2025.
- Adjusted home‑sales gross margin came in at 25.6%, lower than the 27.5% recorded a year earlier, though it was 35 basis points above the company’s internal guidance.
Operations
- The builder delivered 2,662 homes at an average selling price of $996,400. This compares with 2,959 homes delivered in the third quarter of fiscal 2025.
- Net signed contract value rose 5% year‑over‑year to $2.52 billion, reflecting 2,508 contracted homes versus 2,388 in the prior‑year quarter.
- Backlog value stood at $6.24 billion at quarter‑end, modestly down from $6.38 billion a year earlier.
Outlook and Guidance
- For the fourth quarter, Toll Brothers projects delivery of 3,450 to 3,550 units at an average price range of $995,000 to $1,005,000.
- The company reaffirmed its full‑year guidance of approximately $10.5 billion in home‑sales revenue and an adjusted gross margin of 26.1%.
Capital Allocation
- The fiscal‑2026 share‑repurchase program was increased from $650 million to $700 million. During the quarter the company repurchased roughly 1.4 million shares for $206.8 million.
- A quarterly dividend of $0.26 per share was paid.
Management Commentary
- CEO Karl K. Mistry said the results demonstrated a solid performance in a challenging market and noted that the company exceeded the midpoint of its guidance with $2.65 billion of home‑sales revenue.