Toll Brothers exceeded third quarter fiscal 2026 expectations, reporting total revenue of $2.66 billion and EPS of $2.97. Despite a 10% year-over-year decline in home deliveries to 2,662 units, the company saw resilient luxury demand drive a 5% increase in net signed contract value to $2.52 billion.
Key Highlights
- Diluted EPS of $2.97 beat the $2.93 estimate, supported by an average delivered home price of $996,400.
- Adjusted home sales gross margin reached 25.6%, outperforming company guidance by 35 basis points despite $17.7 million in inventory impairments.
- Net signed contract value rose 5% to $2.52 billion, although SG&A expenses expanded to 10.0% of revenues from 8.8% in the prior-year period.
- Management increased its fiscal 2026 share repurchase target to $700 million while reaffirming its annual revenue guidance of approximately $10.5 billion.