Toll Brothers Q3 results fall on lower deliveries

Toll Brothers

18/08/2026 21:46

Overview
U.S. luxury homebuilder's fiscal Q3 revenue and EPS declined yr/yr amid challenging market
Company grew net signed contract value 5% yr/yr despite lower deliveries
Toll Brothers repurchased $206.8 mln in shares, raises FY 2026 buyback target to $700 mln

Outlook
Toll Brothers reaffirms FY 2026 guidance, including home sales revenue of about $10.5 bln
Company expects Q4 deliveries of 3,450-3,550 units and FY 2026 deliveries of 10,500-10,600 units
Toll Brothers raises projected FY 2026 share repurchases to $700 mln from $650 mln

Result Drivers
CONTRACT GROWTH - Co said net signed contract value grew 5% yr/yr, despite lower home deliveries
OPERATIONAL EFFICIENCY - CEO cited focus on operational efficiency as supporting Q3 performance
LOWER DELIVERIES – Q3 home sales revenue fell 8% as deliveries dropped to 2,662 from 2,959, partly offset by a higher average delivered price

Company press release: ID:nGNX4CNjrk

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Home Sales Revenues
 
$2.65 bln
 
Q3 EPS
 
$2.97
 
Q3 Home Sales Adjusted Gross Margin
 
25.6%
 
Q3 Operating Income
 
$359.2 mln
 
Q3 Pretax Profit
 
$374.8 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the homebuilding peer group is "buy"
Wall Street's median 12-month price target for Toll Brothers Inc is $175.00, about 20.3% above its August 17 closing price of $145.45
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Aug 17 - US home builder sentiment ticks up in August but remains weak overall
Aug 18 - US July housing starts data
Aug 18 - Home Depot rides steady repair demand as housing market remains subdued

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(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.)