Toronto Dominion Bank (NYSE:TD) Releases Quarterly Earnings Results, Beats Estimates By $0.24 EPS

Toronto Dominion Bank (NYSE:TD) (TSE:TD) posted its earnings results on Thursday. The bank reported $1.98 earnings per share for the quarter, topping analysts’ consensus estimates of $1.74 by $0.24, Zacks reports. The company had revenue of $12.07 billion during the quarter, compared to analyst estimates of $10.70 billion. Toronto Dominion Bank had a net margin of 14.41% and a return on equity of 14.85%. Toronto Dominion Bank’s revenue for the quarter was up 6.9% on a year-over-year basis. During the same period in the prior year, the business posted $2.20 earnings per share.

Here are the key takeaways from Toronto Dominion Bank’s conference call:

• Positive Sentiment: TD reported record third-quarter adjusted earnings of CAD 4.7 billion and EPS of CAD 2.77, with revenue up 8% year over year, ROE rising to 16%, and positive operating leverage for the fifth consecutive quarter.
• Positive Sentiment: Credit performance improved, with total PCLs falling to 37 basis points and impaired PCLs declining quarter over quarter; management now expects fiscal 2026 PCLs near the lower end of its prior 40–50 basis-point range.
• Positive Sentiment: Growth momentum strengthened across the franchise, including sequential U.S. loan growth, strong U.S. card and mid-market lending, record Canadian personal and commercial banking results, and record Wealth Management and Wholesale Banking revenue and earnings.
• Positive Sentiment: Management said TD could return more than CAD 13 billion through share buybacks in fiscal 2027 while targeting a 13% CET1 ratio, although capital will first support organic growth and potential selective acquisitions.
• Negative Sentiment: The U.S. AML consent order remains in place and is still the bank’s top priority, with approximately USD 550 million of U.S. AML remediation expenses expected in fiscal 2026; Canada-U.S. trade tensions also add macroeconomic uncertainty despite roughly CAD 500 million of reserves for policy and trade risks.

Toronto Dominion Bank Price Performance

Shares of TD stock opened at $121.33 on Friday. The business’s fifty day moving average is $120.58 and its 200 day moving average is $109.23. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.09. The stock has a market cap of $199.57 billion, a price-to-earnings ratio of 18.03, a PEG ratio of 1.22 and a beta of 0.72. Toronto Dominion Bank has a twelve month low of $72.78 and a twelve month high of $125.46.

Toronto Dominion Bank Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Saturday, October 31st. Investors of record on Friday, October 9th will be paid a $1.12 dividend. This represents a $4.48 annualized dividend and a yield of 3.7%. The ex-dividend date of this dividend is Friday, October 9th. Toronto Dominion Bank’s dividend payout ratio is presently 49.14%.

Trending Headlines about Toronto Dominion Bank

Here are the key news stories impacting Toronto Dominion Bank this week:

• Positive Sentiment: Quarterly earnings beat expectations. TD reported approximately C$4.62 billion in third-quarter profit, with adjusted EPS of C$1.98 versus the C$1.74 analyst consensus. Revenue of C$12.07 billion also exceeded the C$10.70 billion estimate and rose 6.9% year over year. TD Bank earnings report
• Positive Sentiment: Capital-markets strength drove the outperformance. Strong trading and deal activity boosted wholesale banking results, while Canadian personal and commercial banking also delivered gains. Lower provisions for credit losses further supported profitability. Canada banks earnings report
• Positive Sentiment: Capital returns and growth plans strengthened the investment case. TD declared a quarterly dividend of C$1.12 per common share, payable October 31, and RBC said the bank is positioned for sustained earnings growth and significant shareholder returns. TD also plans to open roughly 100 additional U.S. branches. TD positioned for earnings growth
• Positive Sentiment: Efficiency initiatives are beginning to produce measurable benefits. TD said its artificial-intelligence initiatives generated approximately C$195 million in value during the first three quarters of fiscal 2026, ahead of schedule. TD AI value report
• Neutral Sentiment: Analysts maintain a consensus “Moderate Buy” recommendation, while TD executives expressed measured confidence in Canada’s economic outlook. TD analyst recommendation
• Negative Sentiment: Despite the earnings beat, reported EPS remained below the year-earlier level in some comparisons, highlighting that the results benefited heavily from capital-markets performance and favorable credit conditions.

Wall Street Analyst Weigh In

A number of brokerages recently commented on TD. Weiss Ratings upgraded Toronto Dominion Bank from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, August 5th. Keefe, Bruyette & Woods assumed coverage on shares of Toronto Dominion Bank in a research report on Friday, August 21st. They set a “market perform” rating on the stock. Raymond James Financial upgraded shares of Toronto Dominion Bank from a “market perform” rating to an “outperform” rating in a report on Tuesday, May 12th. Scotiabank raised shares of Toronto Dominion Bank from a “sector perform” rating to a “sector outperform” rating in a research report on Monday, May 4th. Finally, Wall Street Zen raised shares of Toronto Dominion Bank from a “sell” rating to a “hold” rating in a research note on Saturday, August 22nd. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $156.00.

Institutional Trading of Toronto Dominion Bank

A number of hedge funds have recently modified their holdings of TD. Bank of Nova Scotia increased its stake in shares of Toronto Dominion Bank by 6.8% in the 4th quarter. Bank of Nova Scotia now owns 19,486,741 shares of the bank’s stock worth $1,836,518,000 after acquiring an additional 1,234,510 shares in the last quarter. The Manufacturers Life Insurance Company boosted its stake in Toronto Dominion Bank by 10.6% during the fourth quarter. The Manufacturers Life Insurance Company now owns 17,014,836 shares of the bank’s stock worth $1,606,978,000 after acquiring an additional 1,629,062 shares in the last quarter. Morgan Stanley grew its holdings in Toronto Dominion Bank by 5.2% in the fourth quarter. Morgan Stanley now owns 5,286,308 shares of the bank’s stock worth $497,970,000 after purchasing an additional 261,212 shares during the period. Invesco Ltd. grew its holdings in Toronto Dominion Bank by 9.7% in the fourth quarter. Invesco Ltd. now owns 4,986,602 shares of the bank’s stock worth $469,738,000 after purchasing an additional 440,296 shares during the period. Finally, BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp increased its stake in shares of Toronto Dominion Bank by 8.6% during the third quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 3,970,098 shares of the bank’s stock valued at $317,378,000 after purchasing an additional 313,951 shares in the last quarter. Institutional investors own 52.37% of the company’s stock.

Toronto Dominion Bank Company Profile

Toronto-Dominion Bank (TD) is a Canadian multinational banking and financial services company headquartered in Toronto, Ontario. Formed through the 1955 merger of the Bank of Toronto (founded 1855) and the Dominion Bank (founded 1869), TD is one of Canada’s largest banks and offers a broad range of financial products and services to individual, small business, commercial and institutional clients.

TD’s core businesses include Canadian and U.S. personal and commercial banking, wealth management, wholesale banking and insurance.