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Toll Brothers Beats Q2 Estimates and Raises Full‑Year Guidance

Strong luxury demand drove margin gains that prompted management to lift homebuilding targets and boost shareholder returns.

Overview

  • Toll Brothers reported stronger‑than‑expected Q2 results with $2.5 billion in revenue, an adjusted gross margin of 26.2%, and $2.72 earnings per share.
  • Net signed agreements rose to 2,834 homes for roughly $2.8 billion as management pointed to resilient move‑up buyer demand supporting sales and pricing.
  • The company repurchased about $175 million of stock in the quarter, raised its quarterly dividend, and reaffirmed a $650 million repurchase target for fiscal 2026.
  • Toll Brothers ended the quarter with roughly $1.11 billion in cash and $2.24 billion available on its revolver while backlog value and homes‑in‑backlog fell year over year.
  • Management disclosed on May 20, 2026 that it will pursue 8–10% annual community growth, completed the Buffington Homes deal to enter Northwest Arkansas, and named Seth Ring president and COO.