Toast Inc

Toast expanded its partnership with Google to power agentic food ordering through Ask Maps, a conversational feature in Google Maps. The integration connects AI agents directly to restaurant ordering systems that run on Toast, allowing users to place orders from within Google Maps. Toast is a co-developer of the Universal Commerce Protocol for Food, an open standard designed to govern how AI agents interact with restaurant commerce online. The move positions Toast as a key participant in setting technical rules for AI driven ordering, while aiming to help restaurants keep greater control over their digital channels. Toast's gross payment volume was US$215b across about 180,000 locations in the 12 months to 30 June 2026.

Toast posted second-quarter 2026 results that exceeded expectations, adding a record 9,500 net new locations to reach approximately 180,000 total locations, up 22% year over year. Annualized Recurring Run-Rate grew 25% to $2.4 billion, while recurring gross profit streams increased 28% to $595 million on a non-GAAP basis. Adjusted EBITDA reached $221 million, including a $10 million one-time tariff refund, and GAAP operating income was $152 million, a 26% margin. The company raised its full-year 2026 recurring gross profit guidance to $2.325 billion to $2.355 billion, representing 23% to 25% growth, and adjusted EBITDA guidance to $805 million to $825 million, reinvesting the tariff refund into growth initiatives. CEO Aman Narang highlighted the rapid scaling of the Toast IQ Grow marketing agent, on track to become the fastest product to reach $10 million in ARR, and expansion into new markets including enterprise, international, and retail, with new-market ARR projected to nearly double to $200 million in 2026.

Toast reported second-quarter 2026 results that exceeded analyst expectations on both revenue and earnings, while also raising its full-year outlook and unveiling new AI-driven partnerships with Google and BWH Hotels. The company's share price has rallied 17.3% over the past 30 days and 38.6% over 90 days, though the one-year total shareholder return remains down 23.9%. At $34.72, the stock trades near a widely followed fair value estimate of $34.73, but its price-to-earnings ratio of 41.3 times stands well above the 16.8 times for the US Diversified Financial industry and a fair ratio of 22.5 times, suggesting investors are paying a significant premium.

Toast announced an expanded integration with Google that lets diners order directly from Toast restaurants through Ask Maps, a conversational AI feature in Google Maps. When a guest searches for a restaurant or specific food, Ask Maps can surface a Toast restaurant's menu and carry the request through to a completed order, turning discovery into demand with no extra work for operators. The experience is powered by Toast's co-development of the Universal Commerce Protocol for Food, an open standard defining how AI agents discover, order from, and check out with restaurants across Google surfaces like Search, Maps, and Gemini. Orders placed through Ask Maps flow through Toast's first-party ordering system, helping operators grow order volume without third-party commission fees. To drive early adoption, Toast is funding a promotional offer of $5 in Toast Cash for guests who place an order of $30 or more through Ask Maps, redeemable in the Toast Local app, with the feature expected to begin rolling out in late August.

Toast, Inc. has received a Zacks Rank #1 (Strong Buy), indicating it may outperform the broader market in the near term. The restaurant software provider's consensus earnings estimate for the current quarter stands at $0.32 per share, up 33.3% from a year ago, and has been revised 1.9% higher over the past 30 days. For the current fiscal year, the estimate of $1.35 per share reflects a 51.7% increase and a 1.8% upward revision over the same period. Toast shares have returned 14.5% over the past month, while the Zacks Internet - Software industry lost 3.6% and the S&P 500 composite declined 1.4%.

Shares of Elastic, Toast, and Nutanix rose in afternoon trading after the United States and Iran agreed to halt military exchanges, easing fears of a wider Middle East conflict. Elastic gained 2.6%, Toast jumped 3.7%, and Nutanix climbed 3.6%. The de-escalation reduced oil prices and inflation concerns, lowering the odds of a Federal Reserve rate hike and benefiting high-growth software stocks. The rally also built on a chip-to-software rotation triggered by a report that OpenAI may delay its IPO, which softened fears that AI labs would quickly disrupt incumbent software companies.

Toast shares climbed 6.6% following the announcement that the company will join the S&P MidCap 400 index effective July 1. The inclusion reflects Toast's growing relevance among mid-sized U.S. companies and is expected to prompt index-tracking funds to adjust their holdings. Toast operates a cloud-based restaurant platform and has been expanding into adjacent areas such as grocery and gas stations. The company recently completed a rollout across all Hungry Howie's locations, highlighting its traction with larger multi-unit brands. While the index inclusion may support near-term liquidity and attention, the core investment narrative remains focused on execution in product expansion and enterprise wins, with risks tied to industry pressure on same-store sales and gross payment volume per location.

A bullish thesis on Toast Inc. argues the market underestimates its competitive advantages and growth potential. The company, known for point-of-sale solutions for restaurants, reported revenue growth of approximately 20% year over year and gross profit up 27% in its most recent quarter, recently achieving profitability. The thesis highlights Toast's purpose-built, ruggedized hardware as a key differentiator creating a sticky ecosystem, and notes expansion into adjacent verticals like grocery stores and gas stations. With the stock trading at roughly 37 times trailing earnings and about 18 times forward earnings, the valuation is viewed as attractive given the growth profile.

Zacks Investment Research has identified five technology stocks that have posted double-digit negative returns this year even as the Information Technology Select Sector SPDR, one of the 11 broad-sectors of the S&P 500 Index, is the best-performing sector with a return of 33.2% year to date. The five stocks, each carrying a Zacks Rank of 1 (Strong Buy) or 2 (Buy), are Palantir Technologies, Atlassian, Toast, Unity Software, and Roper Technologies. Palantir is expected to grow revenue and earnings by 71.8% and 98.7% respectively for the current year, while Atlassian's next-year estimates have been revised upward by 13.3% over the last 60 days. Toast and Unity Software also show strong growth projections, and Roper Technologies benefits from strength across its application and network software segments.