Toll Brothers Reports Q3 2026 Earnings Exceeding Guidance
Toll Brothers (NYSE: TOL) reported third-quarter results for fiscal year 2026 that exceeded guidance, with home sales revenue reaching $2.65 billion and an adjusted gross margin of 25.6%. The company saw strong performance in its luxury move-up segment, which accounted for 61% of total revenue. Net income came to $280.1 million or $2.97 per diluted share. Despite a challenging macroeconomic environment marked by high mortgage rates and subdued consumer confidence, Toll Brothers maintained stable cycle times at nine months for build-to-order homes while reducing incentives from 8% last year to an average of 7.5%. The company returned $231 million to shareholders through dividends and share repurchases during the quarter. Looking ahead, management reaffirmed its full-year guidance with revenue expected between $995,000 to $1 million per home delivered across a projected range of 10,500-10,600 homes. The board also increased its stock buyback target from $650 million to $700 million.
