Toll Brothers, Inc. Q2 2026 Earnings Recap

Toll Brothers shares rose 8.4% following a quarter that beat expectations on orders, revenue, and margins, driven by continued strength in their luxury home segment and successful geographic expansion despite a challenging broader market.

Key Takeaways

• Reported revenue of $2.5 billion, approximately $110 million above the midpoint of guidance.
• Adjusted gross margin improved 70 basis points versus guidance to 26.2%.
• Signed 2,834 net agreements, up 7% in units and 8% in dollar value year-over-year.
• Expanded selling communities to 459, up from 421 a year ago, with plans for further growth including the recent acquisition of Buffington Homes in Northwest Arkansas.
• Geographic demand mixed: Florida, Boston, and several Mountain and Southern markets performed well; weaker demand noted in Atlanta, San Antonio, Seattle, Portland, and San Francisco.