Toast Q2 revenue beats analyst estimates on customer growth, AI offerings

Toast

04/08/2026 21:39

Overview
Restaurant technology platform's Q2 revenue rose, beating analyst expectations
Net income for Q2 more than doubled year-over-year to $154 mln
Company repurchased 19 mln shares for $486 mln year-to-date

Outlook
Toast expects Q3 non-GAAP subscription services and financial technology solutions gross profit of $615 mln-$625 mln
Company sees Q3 adjusted EBITDA of $210 mln-$220 mln
Toast raises 2026 full-year non-GAAP gross profit growth outlook to 23%-25%, up from 21%-23%
Company lifts 2026 adjusted EBITDA forecast to $805 mln-$825 mln, up from $790 mln-$810 mln

Result Drivers
CUSTOMER GROWTH - Added a record 9,500 net new locations in Q2, boosting recurring revenue streams
ENTERPRISE PARTNERSHIPS - Secured new and expanded deals with enterprise clients including BWH Hotels and TGI Fridays
AI OFFERINGS - Rapid adoption of Toast IQ Grow, the company's fastest-growing new product, contributed to growth

Company press release: ID:nBw8RHpzRa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.91 bln
$1.87 bln (25 Analysts)
Q2 Net Income
 
$154 mln
 
Q2 Annual Recurring Revenue
 
$2.40 bln
 
Q2 Gross Profit
 
$516 mln
 
Q2 Operating Expenses
 
$364 mln
 
Q2 Operating Income
 
$152 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Toast Inc is $35.00, about 6.7% above its August 3 closing price of $32.79
The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 32 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)