Toll Brothers (NYSE:TOL) Releases Earnings Results, Beats Estimates By $0.14 EPS

Toll Brothers (NYSE:TOL) posted its quarterly earnings results on Tuesday. The construction company reported $2.19 EPS for the quarter, beating the consensus estimate of $2.05 by $0.14, FiscalAI reports. The business had revenue of $2.15 billion during the quarter, compared to analyst estimates of $1.86 billion. Toll Brothers had a net margin of 12.26% and a return on equity of 16.99%. The company’s quarterly revenue was up 15.4% on a year-over-year basis. During the same period in the previous year, the business posted $1.75 EPS.

Toll Brothers Stock Performance

Shares of TOL stock opened at $159.92 on Thursday. The firm has a market cap of $15.15 billion, a P/E ratio of 11.42, a PEG ratio of 1.29 and a beta of 1.47. The stock’s 50-day moving average is $145.45 and its two-hundred day moving average is $139.09. The company has a debt-to-equity ratio of 0.34, a current ratio of 4.38 and a quick ratio of 0.64. Toll Brothers has a fifty-two week low of $86.67 and a fifty-two week high of $168.36.

Toll Brothers Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, January 23rd. Stockholders of record on Friday, January 9th were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Friday, January 9th. Toll Brothers’s payout ratio is currently 7.37%.

Key Toll Brothers News

Here are the key news stories impacting Toll Brothers this week:

• Positive Sentiment: Q1 results beat expectations — Toll reported $2.19 EPS and $2.15B revenue, both above consensus, with net income and revenue rising year?over?year; management emphasized profitable momentum on the call. GlobeNewswire: Q1 Results
• Positive Sentiment: Management reiterated FY26 guidance and set clear targets — the company is targeting 8%–10% community count growth for 2026 while maintaining a ~26% gross margin outlook, which signals confidence in demand and margin discipline. MSN: Growth & Margin Targets
• Positive Sentiment: Analyst support and favorable technical setup — brokers (e.g., Citizens JMP) reaffirmed/maintained bullish ratings and $175 target(s), and MarketBeat/sector coverage points to Toll as a homebuilder leader approaching a technical breakout. Benzinga: Analyst Rating
• Neutral Sentiment: Management commentary and call transcript give more color on land sales and backlog; investors should read the call highlights and transcript for execution details. Yahoo Finance: Q1 Earnings Call Highlights
• Neutral Sentiment: Sector rotation into homebuilders is supporting valuations — analysts note the group has outperformed YTD, which helps Toll’s multiple despite macro uncertainty. MarketBeat: Homebuilders Theme
• Negative Sentiment: Signed?contract weakness and per?home price disappointment — reports and the call transcript show fewer contracts than expected and softer per?home price trends, which raise concerns about near?term sales velocity and backlog quality. Seeking Alpha: Per?Home Price Disappoints
• Negative Sentiment: Margin pressure and softer backlog flagged by some outlets — analysts warned that cost pressures and a softer backlog could temper upside even after the beat. Zacks: Margin & Backlog Risks
• Negative Sentiment: Insider selling and some institutional rebalancing noted — reported insider sales and mixed fund flows have been cited as additional near?term headwinds that can add selling pressure after earnings. QuiverQuant: Insider Activity & Post?Earnings Move

Insiders Place Their Bets

In other news, Director Paul E. Shapiro sold 3,965 shares of the business’s stock in a transaction on Thursday, January 15th. The shares were sold at an average price of $146.68, for a total value of $581,586.20. Following the completion of the sale, the director directly owned 118,680 shares in the company, valued at approximately $17,407,982.40. The trade was a 3.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.37% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Toll Brothers

A number of hedge funds have recently made changes to their positions in the business. Pinnacle Holdings LLC bought a new stake in shares of Toll Brothers during the fourth quarter worth $27,000. Wiser Advisor Group LLC acquired a new stake in Toll Brothers during the 3rd quarter worth $27,000. Measured Wealth Private Client Group LLC bought a new stake in Toll Brothers in the third quarter valued at about $29,000. Turning Point Benefit Group Inc. acquired a new stake in shares of Toll Brothers in the 3rd quarter valued at approximately $37,000. Finally, Smartleaf Asset Management LLC boosted its position in shares of Toll Brothers by 46.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 308 shares of the construction company’s stock worth $42,000 after purchasing an additional 98 shares in the last quarter. Institutional investors and hedge funds own 91.76% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have weighed in on TOL. JPMorgan Chase & Co. dropped their target price on Toll Brothers from $161.00 to $141.00 and set an “overweight” rating on the stock in a research report on Friday, December 12th. BTIG Research began coverage on shares of Toll Brothers in a research report on Monday, December 1st. They issued a “neutral” rating for the company. Wells Fargo & Company reaffirmed an “overweight” rating and set a $185.00 price target on shares of Toll Brothers in a report on Thursday. The Goldman Sachs Group raised their target price on Toll Brothers from $140.00 to $156.00 and gave the company a “neutral” rating in a research report on Tuesday, January 13th. Finally, Citigroup assumed coverage on Toll Brothers in a research note on Wednesday, January 7th. They issued an “outperform” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $156.87.

About Toll Brothers

Toll Brothers, Inc is a publicly traded homebuilding company that focuses on designing and constructing luxury residential properties. The company’s core business encompasses a broad range of housing products, including custom single-family homes, upscale condominium communities and rental apartment ventures. Toll Brothers emphasizes high-end finishes and architectural craftsmanship, positioning itself in the premium segment of the U.S. housing market.

In addition to traditional homebuilding, Toll Brothers operates specialized divisions to address evolving consumer preferences.