Toll Brothers faces a fundamental challenge as its core luxury pricing power thesis is undermined by accelerating gross margin compression, which has fallen from 27.2% in 2024Q3 to 23.5% in 2026Q3, creating negative operating leverage.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has decelerated into a 9.7% YoY decline in Q3 2026, while gross margin has compressed 380 basis points over two years to 23.5%, amplifying operating income pressure through negative operating leverage.
Toll Brothers has emerged as a resilient outlier in the housing market, maintaining margins despite interest rate volatility and inventory shortages.
The company has a strong moat and a robust business model, which is highlighted in investment memos and analysis.
If interest rates fall faster, Toll Brothers could see an 8% revenue growth in the bull case scenario.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 18, 2026 | $2.97+1.4% vs $2.93 | $2.7B+1.5% vs $2.6B |
Q2 2026 May 19, 2026 | $2.72+5.4% vs $2.58 | $2.5B+4.8% vs $2.4B |
Q1 2026 Feb 17, 2026 | $2.19+6.8% vs $2.05 | $2.1B+15.7% vs $1.9B |
Q4 2025 Dec 8, 2025 | $4.58-6.1% vs $4.88 | $3.4B+3.7% vs $3.3B |
The Crest Collection will feature luxury homes with stunning mountain views The Crest Collection will feature luxury homes with stunning mountain views
Regency at Lake Hills offers lakefront living with resort-style amenities in Lake County Regency at Lake Hills offers lakefront living with resort-style amenities in Lake County
Montreo by Toll Brothers will offer stunning views, spacious home designs, and exclusive gated living Montreo by Toll Brothers will offer stunning views, spacious home designs, and exclusive gated living
Toll Brothers (TOL) concluded the recent trading session at $141.95, signifying a +1.1% move from its prior day's close.
Benchmark TOL against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Toll Brothers, Inc. (TOL)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $152.56 | $14.26B | 12.17 | 1.11% | 11.14% | 14.21% | 0.64% | |
| $152.28 | $42.59B | 14.65 | -3.52% | 8.74% | 11.93% | 1.18% | |
| $88.74 | $22.03B | 16.09 | -3.54% | 4.1% | 5.99% | 2.28% | |
| $132.49 | $25.57B | 13.85 | -3.54% | 11.24% | 13.8% | 0.67% | |
| $6298.29 | $17B | 16.71 | -2.08% | 11.23% | 29.53% | — | |
| $131.60 | $3.39B | 12.31 | -1.93% | 6.59% | 8.64% | — |
Toll Brothers, Inc. (TOL) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Toll Brothers, Inc. (TOL) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 18, 2026·SEC
May 19, 2026·SEC
May 13, 2026·SEC
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Toll Brothers, Inc. (TOL) stock FAQ — growth, dividends, profitability & financials explained
Toll Brothers, Inc. (TOL) reported $10.76B in revenue over the trailing twelve months. Revenue was $10.97B in fiscal year 2025. That is 1342% more than the $760.7M of fiscal year 1996.
Toll Brothers, Inc. (TOL) revenue fell by 1.1% over the trailing twelve months, compared with the twelve months before.
Yes. Toll Brothers, Inc. (TOL) earned $1.20B in net income over the trailing twelve months (a 11.1% net margin).
Yes. Toll Brothers, Inc. (TOL) pays a dividend that yields 0.64% at the current price, a small yield.
Toll Brothers, Inc. (TOL) had a return on equity (ROE) of 14.2% over the trailing twelve months. That is in line with the market's typical 10-15%.
Toll Brothers, Inc. (TOL) generated $1.09B in free cash flow over the trailing twelve months.
