Toro Co beats Q2 revenue estimates on broad-based demand, raises FY adj. EPS outlook

Toro Co

04/06/2026 13:42

Overview
U.S. outdoor equipment maker's fiscal Q2 net sales rose 8.1%, beating analyst expectations
Adjusted EPS for fiscal Q2 rose 12.7%, beating analyst expectations
Company raised full-year net sales and adjusted EPS guidance

Outlook
Toro raises full-year net sales growth outlook to 4.0%-6.5% from 3.0%-6.5%
Company now sees full-year adjusted EPS at $4.50-$4.62, up from $4.40-$4.60
Toro expects to capitalize on opportunities in underground construction, landscape contractor and golf markets

Result Drivers
BROAD-BASED DEMAND - Toro said strong demand across its portfolio drove Q2 results
PRICE REALIZATION & PRODUCTIVITY - Margin improvement was primarily due to price realization and productivity gains, partially offset by higher material, manufacturing, and freight costs
TORNADO ACQUISITION & HIGHER SHIPMENTS - Professional segment growth was driven by price realization, the Tornado acquisition, and higher shipments of underground construction equipment and zero-turn mowers

Company press release: ID:nBwwLB00a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$1.42 bln
$1.39 bln (5 Analysts)
Q2 Adjusted EPS
Beat
$1.60
$1.50 (5 Analysts)
Q2 EPS
 
$1.50
 
Q2 Adjusted Net Income
 
$155.40 mln
 
Q2 Net Income
 
$145.40 mln
 
Q2 Gross Margin
 
33.90%
 
Q2 Gross Profit
 
$482.70 mln
 
Q2 Operating earnings
 
$195 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"
Wall Street's median 12-month price target for Toro Co is $117.00, about 28.6% above its June 3 closing price of $90.95
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago

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.)