Zacks Research Lowers Earnings Estimates for Toll Brothers

Toll Brothers Inc. (NYSE:TOL) – Analysts at Zacks Research dropped their Q3 2026 EPS estimates for shares of Toll Brothers in a report released on Tuesday, June 9th. Zacks Research analyst Team now expects that the construction company will post earnings of $2.88 per share for the quarter, down from their prior estimate of $3.52. The consensus estimate for Toll Brothers’ current full-year earnings is $12.68 per share. Zacks Research also issued estimates for Toll Brothers’ Q4 2026 earnings at $4.85 EPS and Q3 2027 earnings at $3.52 EPS.

Toll Brothers (NYSE:TOL) last released its quarterly earnings results on Tuesday, May 19th. The construction company reported $2.72 EPS for the quarter, topping analysts’ consensus estimates of $2.58 by $0.14. Toll Brothers had a net margin of 11.66% and a return on equity of 15.47%. The company had revenue of $2.53 billion for the quarter, compared to the consensus estimate of $2.42 billion. During the same period in the previous year, the firm earned $3.50 EPS. Toll Brothers’s revenue was down 7.6% on a year-over-year basis.

TOL has been the topic of a number of other reports. BTIG Research started coverage on shares of Toll Brothers in a research report on Tuesday. They set a “buy” rating on the stock. Royal Bank Of Canada downgraded shares of Toll Brothers from an “outperform” rating to a “sector perform” rating in a research report on Tuesday. JPMorgan Chase & Co. boosted their price target on shares of Toll Brothers from $141.00 to $143.00 and gave the stock an “overweight” rating in a research report on Monday, February 23rd. Argus set a $170.00 price target on shares of Toll Brothers in a research report on Tuesday, June 2nd. Finally, Truist Financial dropped their price target on shares of Toll Brothers from $170.00 to $165.00 and set a “buy” rating on the stock in a research report on Thursday, May 21st. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Toll Brothers presently has a consensus rating of “Moderate Buy” and a consensus price target of $163.56.

Toll Brothers Stock Down 3.5%

TOL stock opened at $139.16 on Thursday. Toll Brothers has a 52 week low of $104.09 and a 52 week high of $168.36. The company has a market capitalization of $13.01 billion, a price-to-earnings ratio of 10.53, a price-to-earnings-growth ratio of 1.19 and a beta of 1.36. The firm’s 50-day moving average is $138.60 and its two-hundred day moving average is $142.33. The company has a current ratio of 4.67, a quick ratio of 0.59 and a debt-to-equity ratio of 0.33.

Institutional Trading of Toll Brothers

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Western Wealth Management LLC raised its holdings in shares of Toll Brothers by 2.6% in the 4th quarter. Western Wealth Management LLC now owns 2,658 shares of the construction company’s stock worth $359,000 after purchasing an additional 68 shares in the last quarter. Root Financial Partners LLC raised its holdings in shares of Toll Brothers by 21.9% in the 4th quarter. Root Financial Partners LLC now owns 389 shares of the construction company’s stock worth $53,000 after purchasing an additional 70 shares in the last quarter. Merit Financial Group LLC raised its holdings in shares of Toll Brothers by 0.4% in the 4th quarter. Merit Financial Group LLC now owns 20,568 shares of the construction company’s stock worth $2,781,000 after purchasing an additional 72 shares in the last quarter. IFP Advisors Inc raised its holdings in shares of Toll Brothers by 2.4% in the 4th quarter. IFP Advisors Inc now owns 3,200 shares of the construction company’s stock worth $433,000 after purchasing an additional 74 shares in the last quarter. Finally, Hilton Head Capital Partners LLC raised its holdings in shares of Toll Brothers by 65.5% in the 1st quarter. Hilton Head Capital Partners LLC now owns 187 shares of the construction company’s stock worth $26,000 after purchasing an additional 74 shares in the last quarter. 91.76% of the stock is currently owned by institutional investors.

Insider Activity at Toll Brothers

In related news, Director Stephen F. East sold 1,000 shares of the business’s stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $139.70, for a total value of $139,700.00. Following the sale, the director directly owned 13,442 shares in the company, valued at $1,877,847.40. The trade was a 6.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 1.37% of the stock is owned by insiders.

Key Toll Brothers News

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

• Positive Sentiment: Keefe, Bruyette & Woods upgraded Toll Brothers to outperform from market perform and raised its price target to $161, implying meaningful upside from recent levels.
• Positive Sentiment: Zacks Research lifted its FY2026, Q2 2027, Q4 2027, and FY2027 earnings estimates for Toll Brothers, suggesting analysts see stronger profitability ahead. Analyst estimate updates for Toll Brothers
• Positive Sentiment: Toll Brothers announced new community activity, including a model home grand opening at Santa Rita Ranch in Texas and a final sales opportunity at Skye Canyon in Las Vegas, signaling continued demand and active home delivery/marketing efforts. Model Home Grand Opening at Santa Rita Ranch Final Opportunity at Skye Canyon
• Positive Sentiment: Another company update highlighted a final opportunity at University Park in Palm Desert and an award for Toll Brothers at Marsh Harbor, reinforcing the company’s luxury brand and execution in key communities. University Park Final Opportunity Best of Show Award at Marsh Harbor
• Neutral Sentiment: A market video commentary labeled Toll Brothers as an outperformer in housing but suggested it may be due for a pullback; this is opinion-based and not a fundamental change. The Big 3: TOL, DAL, MS
• Negative Sentiment: Zacks also trimmed some near-term and longer-term estimates, including Q1 2027 and Q1 2028, and slightly lowered FY2027 earnings expectations, which may temper enthusiasm around the stock.

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.