Toll Brothers, Inc. Q2 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Household Durables | Market Cap: ₹13.1K Cr
- Projected fiscal 2026 deliveries increased slightly, now expected between 10,400 and 10,700 homes (up 100 homes at the low end). - Fiscal 2026 full-year guidance raised: projected deliveries between 10,400 and 10,700 homes, with an average price of $985,000 to $1 million.
From Toll Brothers, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹138.14
Market Cap
₹13.1K Cr
P/E Ratio
10.5
Revenue Rank
Margin Rank
How does Toll Brothers, Inc. rank in Household Durables?
Compare Toll Brothers, Inc. against every Household Durables company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 3- →Projected fiscal 2026 deliveries increased slightly, now expected between 10,400 and 10,700 homes (up 100 homes at the low end).
- →Average delivered price forecast raised to between $985,000 and $1 million, with a $12,500 increase at the midpoint.
- →Full-year adjusted gross margin guidance improved by 10 basis points to 26.1%.
- →Community count expected to grow 8%-10% annually, with 480-490 communities by fiscal year-end 2026 and plans to maintain this growth in 2027 and beyond.
- →Land ownership/control sufficient to support this growth strategy.
- →Net agreements increased 7% year-over-year, reflecting successful execution of growth plans.
- →Continued focus on move-up luxury segment, which comprises about 60% of business and delivers highest margins.
- →Healthy financial position provides capital for growth and shareholder returns.
📈 Profitability & Margins
Rank 3- →Fiscal 2026 full-year guidance raised: projected deliveries between 10,400 and 10,700 homes, with an average price of $985,000 to $1 million.
- →Full-year adjusted gross margin guidance increased by 10 basis points to 26.1%, with Q3 margin at 25.25% and Q4 expected at 26.3%.
- →SG&A margin guidance improved by 15 basis points to 10.1% for the full year.
- →Earnings per share (EPS) of $2.72 reported for Q2, beating midpoint guidance by $0.18.
- →Company confident in their ability to maintain margins and sales pace despite market challenges.
- →Strong backlog: Approximately 4,100 of 5,400 homes expected to close in the back half of 2026, supporting delivery and revenue guidance.
- →Share repurchase target set at $650 million for fiscal 2026, with potential for more depending on stock performance.
- →Business positioned for steady growth due to affluent buyer base and geographic expansion plans into 2027 and beyond.
🏗️ Capital Expenditure Plans
Yes- →Toll Brothers emphasizes continued investment in future growth through disciplined capital allocation.
- →The company maintains substantial liquidity with $3.3 billion available, supporting ongoing investments.
- →Strategic acquisitions remain a focus, exemplified by the recent acquisition of Buffington Homes in Northwest Arkansas, adding ~1,500 lots and enhancing local expertise.
- →The company plans community count growth at 8%-10% annually, supported by land ownership/control sufficient to sustain expansion.
- →Moderate land banking is practiced (20%-30% of lots), balancing margin and returns, often utilizing seller financing or favorable structures.
- →Investment in design studios continues to enhance customer experience and drive high-margin finish selections.
- →Ongoing investments include marketing discipline and operational efficiencies to optimize returns.
- →No major transformative M&A is anticipated; emphasis remains on bolt-on strategic acquisitions aligned with existing markets.
💰 Fundraising & Capital Structure
No information📋 Order Book & Pipeline
No information- →The backlog consists of about 5,400 homes.
- →Approximately 4,100 homes from the backlog are expected to close in the second half of fiscal 2026.
- →This implies roughly 2,000 spec homes need to be sold and settled in the back half to meet guidance.
- →Sales pace has been consistent throughout the quarter and into early May, with April being the strongest month.
- →Buyer conversions are taking longer due to consumer confidence but remain stable at the current price points.
- →The company is focused on selling spec homes earlier in the construction process to maximize design studio revenues.
- →Overall, orderbook visibility is solid, supporting raised full-year delivery guidance.
Key Metrics
Revenue
Margin
Capex
Fundraise
Order Book
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Frequently Asked Questions
What were Toll Brothers, Inc. Q2 FY26 results?
- Projected fiscal 2026 deliveries increased slightly, now expected between 10,400 and 10,700 homes (up 100 homes at the low end). - Fiscal 2026 full-year guidance raised: projected deliveries between 10,400 and 10,700 homes, with an average price of $985,000 to $1 million.
What is Toll Brothers, Inc. share price analysis?
Toll Brothers, Inc. currently shows a below-average growth signal. The stock trades at a P/E of 10.5 with a market cap of $13,083. Investors should review the full earnings analysis for detailed insights.
Is Toll Brothers, Inc. planning capital expenditure?
- Toll Brothers emphasizes continued investment in future growth through disciplined capital allocation.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.