Toronto Dominion BankTD
▲ PositiveCapitalrelevance
Record Q3 earnings and EPS growth, with all segments up, though regulatory and trade risks temper outlook.
Impact on stocks 1
Financials
Toronto Dominion BankToronto-Dominion Bank reported a record third quarter with adjusted net income of $4.7 billion, up 21% year over year, and adjusted diluted EPS of $2.77, up 26%, as all major business segments grew earnings simultaneously. However, management flagged ongoing trade uncertainty and a still-active US anti-money laundering consent order, with roughly $500 million set aside for trade and policy risk and about $550 million in expected remediation costs for the fiscal year. The bank's US Banking net income jumped 41% to $1,074 million, while Wholesale Banking surged 87% to $743 million, and Wealth Management and Insurance rose 20% to $841 million. CEO Raymond Chun highlighted total loans turning positive sequentially in the US as an inflection point, and the bank has already banked $900 million of its targeted structural cost cuts for fiscal 2026. Despite the strong results, hedge fund ownership of TD fell from 33 to 30 funds, and the stock trades at a forward P/E of 15.48, suggesting the market has not fully credited the acceleration, with management pointing to as much as $13 billion in potential capital return for fiscal 2027.
Toronto Dominion BankRecord Q3 earnings and EPS growth, with all segments up, though regulatory and trade risks temper outlook.