Toll Brothers reported fiscal third-quarter 2026 results that beat Wall Street expectations, with earnings per diluted share of $2.97 versus the consensus estimate of $2.93. Home sales revenues reached $2.65 billion from 2,662 deliveries, and net income totaled $280.1 million, while adjusted home sales gross margin hit 25.6%, exceeding guidance by 35 basis points. Net signed contracts rose 5% year-over-year to 2,508 homes valued at $2.52 billion, and the company raised its full-year share repurchase target to $700 million. Analysts responded positively, with UBS raising its price target to $195 and Citi to $179, both maintaining Buy ratings. The company faces a debate on whether its affluent, cash-heavy customer base can withstand high mortgage rates, with about 25% of buyers paying cash, but also faces risks from margin compression and rising land write-offs. Investors should watch community expansion targets of 480–490 by year-end and Q4 delivery guidance of 3,450–3,550 units.
Toll Brothers IncBeat Q3 estimates, raised buyback target, and analysts raised price targets.
Citigroup Inc.
UBS Group AG