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, Inc. (TOL) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Sales/Revenue | 10.76B | 10.97B | 10.85B | 9.99B | 10.28B | 8.79B | 7.08B | 7.22B | 7.14B | 5.82B | 5.17B | 4.17B | 3.91B | 2.67B | 1.88B | 1.48B | 1.49B | 1.76B | 3.16B | 4.65B | 6.12B | 5.79B | 3.89B | 2.78B | 2.33B | 2.23B | 1.8B | 1.46B | 1.21B | 971.7M | 760.7M |
| Revenue Growth % | -1.08% | 1.11% | 8.52% | -2.73% | 16.9% | 24.2% | -2.03% | 1.13% | 22.84% | 12.49% | 23.93% | 6.64% | 46.27% | 42.04% | 27.57% | -1.26% | -14.84% | -44.42% | -32.04% | -24.11% | 5.7% | 48.81% | 40.28% | 19.16% | 4.46% | 23.53% | 24.01% | 20.66% | 24.14% | 27.74% | 17.7% |
| Cost of Goods Sold | 8.15B | 8.12B | 7.82B | 7.36B | 7.79B | 6.85B | 5.66B | 5.81B | 5.67B | 4.56B | 4.14B | 3.27B | 3.08B | 2.13B | 1.53B | 1.26B | 1.38B | 1.95B | 3.04B | 4.02B | 4.4B | 3.93B | 2.76B | 2B | 1.68B | 1.62B | 1.36B | 1.12B | 928.3M | 744.2M | 577.7M |
| COGS % of Revenue | - | 74.04% | 72.13% | 73.64% | 75.8% | 77.9% | 79.97% | 80.41% | 79.42% | 78.46% | 80.16% | 78.38% | 78.79% | 79.77% | 81.37% | 85.42% | 92.53% | 111.17% | 96.15% | 86.57% | 71.9% | 67.79% | 70.97% | 71.9% | 72.18% | 72.83% | 75.26% | 77.27% | 76.95% | 76.59% | 75.94% |
| Gross Profit | 2.61B | 2.85B | 3.02B | 2.63B | 2.49B | 1.94B | 1.42B | 1.42B | 1.47B | 1.25B | 1.03B | 901.98M | 829.76M | 541M | 350.69M | 215.11M | 111.7M | -196M | 121.46M | 624.05M | 1.72B | 1.87B | 1.13B | 779.93M | 647.97M | 605.87M | 446.57M | 330.8M | 278M | 227.5M | 183M |
| Gross Margin % | 24.25% | 25.96% | 27.87% | 26.36% | 24.2% | 22.1% | 20.03% | 19.59% | 20.58% | 21.54% | 19.84% | 21.62% | 21.21% | 20.23% | 18.63% | 14.58% | 7.47% | -11.17% | 3.85% | 13.43% | 28.1% | 32.21% | 29.03% | 28.1% | 27.82% | 27.17% | 24.74% | 22.73% | 23.05% | 23.41% | 24.06% |
| Gross Profit Growth % | - | -5.81% | 14.74% | 5.95% | 27.97% | 37.05% | 0.17% | -3.73% | 17.36% | 22.17% | 13.69% | 8.7% | 53.38% | 54.27% | 63.03% | 92.59% | 156.99% | -261.38% | -80.54% | -63.74% | -7.79% | 65.15% | 44.89% | 20.36% | 6.95% | 35.67% | 35% | 18.99% | 22.2% | 24.32% | 11.45% |
| Operating Expenses | 1.12B | 1.13B | 982.29M | 909.45M | 977.75M | 922.02M | 867.44M | 734.55M | 684.03M | 607.82M | 535.38M | 455.11M | 432.52M | 339.93M | 287.26M | 261.36M | 263.22M | 321.16M | 521.99M | 628.15M | 695.4M | 608.07M | 381.08M | 288.34M | 236.12M | 267.98M | 178.89M | 136.8M | 112.3M | 90.4M | 73M |
| OpEx % of Revenue | - | 10.27% | 9.06% | 9.1% | 9.52% | 10.49% | 12.26% | 10.17% | 9.58% | 10.45% | 10.36% | 10.91% | 11.06% | 12.71% | 15.26% | 17.71% | 17.61% | 18.3% | 16.53% | 13.52% | 11.36% | 10.5% | 9.79% | 10.39% | 10.14% | 12.02% | 9.91% | 9.4% | 9.31% | 9.3% | 9.6% |
| Selling, General & Admin | 1.07B | 1.03B | 982.29M | 909.45M | 977.75M | 922.02M | 867.44M | 734.55M | 684.03M | 606.68M | 535.38M | 455.11M | 426.42M | 338.53M | 287.26M | 261.36M | 263.22M | 321.16M | 429.89M | 516.73M | 573.4M | 482.79M | 381.08M | 288.34M | 236.12M | 209.73M | 170.36M | 130.2M | 106.7M | 86.3M | 69.7M |
| SG&A % of Revenue | - | 9.43% | 9.06% | 9.1% | 9.52% | 10.49% | 12.26% | 10.17% | 9.58% | 10.43% | 10.36% | 10.91% | 10.9% | 12.66% | 15.26% | 17.71% | 17.61% | 18.3% | 13.61% | 11.12% | 9.36% | 8.33% | 9.79% | 10.39% | 10.14% | 9.41% | 9.44% | 8.95% | 8.85% | 8.88% | 9.16% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 92.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 66.19M | 0 | 0 | 0 | 0 | 0 | 92.09M | 111.42M | 121.99M | 125.28M | 0 | 0 | 0 | 58.25M | 8.53M | 6.6M | 5.6M | 4.1M | 3.3M |
| Operating Income | 1.49B | 1.72B | 2.04B | 1.72B | 1.51B | 1.02B | 550.26M | 680.8M | 786.22M | 644.94M | 490.06M | 446.87M | 397.25M | 201.07M | 63.43M | -47.75M | -174.28M | -517.16M | -400.53M | -4.1M | 1.03B | 1.26B | 748.96M | 491.59M | 411.85M | 337.89M | 267.68M | 194M | 165.7M | 137.1M | 110M |
| Operating Margin % | 13.84% | 15.69% | 18.81% | 17.26% | 14.68% | 11.61% | 7.77% | 9.42% | 11.01% | 11.09% | 9.48% | 10.71% | 10.16% | 7.52% | 3.37% | -3.24% | -11.66% | -29.46% | -12.68% | -0.09% | 16.75% | 21.72% | 19.24% | 17.71% | 17.68% | 15.15% | 14.83% | 13.33% | 13.74% | 14.11% | 14.46% |
| Operating Income Growth % | - | -15.66% | 18.29% | 14.33% | 47.78% | 85.53% | -19.17% | -13.41% | 21.91% | 31.6% | 9.67% | 12.49% | 97.57% | 217% | 232.84% | 72.6% | 66.3% | -29.12% | -9669.07% | -100.4% | -18.49% | 68% | 52.36% | 19.36% | 21.89% | 26.23% | 37.98% | 17.08% | 20.86% | 24.64% | 8.27% |
| EBITDA | 1.57B | 1.8B | 2.12B | 1.8B | 1.59B | 1.1B | 619.13M | 752.95M | 811.48M | 670.3M | 513.18M | 470.43M | 420.25M | 226.28M | 86.02M | -24.61M | -154.24M | -493.24M | -372.2M | 27.14M | 1.06B | 1.28B | 770.73M | 503.67M | 422.34M | 347.25M | 276.21M | 200.6M | 171.3M | 141.2M | 113.3M |
| EBITDA Margin % | 14.55% | 16.44% | 19.56% | 18.02% | 15.43% | 12.48% | 8.75% | 10.42% | 11.36% | 11.53% | 9.93% | 11.28% | 10.74% | 8.46% | 4.57% | -1.67% | -10.32% | -28.1% | -11.79% | 0.58% | 17.28% | 22.14% | 19.8% | 18.15% | 18.13% | 15.57% | 15.3% | 13.78% | 14.2% | 14.53% | 14.89% |
| EBITDA Growth % | -15.56% | -15.02% | 17.77% | 13.61% | 44.51% | 77.2% | -17.77% | -7.21% | 21.06% | 30.62% | 9.09% | 11.94% | 85.72% | 163.07% | 449.57% | 84.05% | 68.73% | -32.52% | -1471.4% | -97.43% | -17.52% | 66.41% | 53.02% | 19.26% | 21.63% | 25.72% | 37.69% | 17.1% | 21.32% | 24.62% | 8.42% |
| D&A (Non-Cash Add-back) | 76.23M | 82.08M | 81.2M | 76.47M | 76.82M | 76.25M | 68.87M | 72.15M | 25.26M | 25.36M | 23.12M | 23.56M | 23M | 25.21M | 22.59M | 23.14M | 20.04M | 23.93M | 28.33M | 31.24M | 32.31M | 24.35M | 21.77M | 12.07M | 10.49M | 9.36M | 8.53M | 6.6M | 5.6M | 4.1M | 3.3M |
| EBIT | 1.59B | 1.78B | 2.09B | 1.84B | 1.7B | 1.1B | 607.63M | 723.46M | 933.92M | 652.98M | 498.19M | 452.09M | 505.24M | 203.6M | 112.94M | -27.86M | -94.44M | -488.52M | -466.79M | 70.68M | 1.03B | 1.26B | 624.51M | 401.55M | 411.85M | 337.89M | 264.43M | 194M | 165.7M | 133.7M | 108.6M |
| Net Interest Income | 55.7M | 71.9M | 38.5M | 35.13M | 6.18M | 4.32M | 7.57M | 19.02M | 8.57M | 5.99M | 2.44M | 1.94M | 1.84M | 4.46M | 4.68M | 3.71M | -18.38M | 20.26M | 124.37M | 118.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 55.7M | 71.9M | 38.5M | 35.13M | 6.18M | 4.32M | 10.01M | 19.02M | 8.57M | 5.99M | 2.44M | 1.94M | 2.49M | 4.46M | 4.68M | 23.4M | 34.83M | 41.91M | 124.37M | 118.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 2.44M | 0 | 0 | 0 | 0 | 0 | 656K | 0 | 0 | 1.5M | 22.75M | 13.69M | 0 | 0 | 0 | 0 | 109.76M | 87.63M | 64.53M | 0 | 36.72M | 24.2M | 28M | 32.3M | 24.3M |
| Other Income/Expense | 102.78M | 70.76M | 45.45M | 117.62M | 195.1M | 79.44M | 36.64M | 106.37M | 147.7M | 167.13M | 98.97M | 88.69M | 107.33M | 66.63M | 49.51M | 16.88M | 27.82M | 20.7M | -62.02M | 74.78M | 101.03M | 64.89M | -101.53M | -80.44M | -64.53M | 0 | -33.47M | -31.3M | -31.4M | -26.1M | -22.9M |
| Pretax Income | 1.59B | 1.79B | 2.09B | 1.84B | 1.7B | 1.1B | 586.9M | 787.17M | 933.92M | 814.31M | 589.03M | 535.56M | 504.58M | 267.7M | 112.94M | -29.37M | -117.19M | -496.46M | -466.79M | 70.68M | 1.13B | 1.32B | 647.43M | 411.15M | 347.32M | 337.89M | 230.97M | 162.7M | 134.3M | 107.6M | 85.7M |
| Pretax Margin % | 14.79% | 16.33% | 19.23% | 18.43% | 16.58% | 12.52% | 8.29% | 10.9% | 13.07% | 14% | 11.39% | 12.84% | 12.9% | 10.01% | 6% | -1.99% | -7.84% | -28.28% | -14.78% | 1.52% | 18.4% | 22.84% | 16.63% | 14.82% | 14.91% | 15.15% | 12.8% | 11.18% | 11.13% | 11.07% | 11.27% |
| Income Tax | 393.32M | 444.88M | 514.45M | 470.3M | 417.23M | 266.69M | 140.28M | 197.16M | 185.76M | 278.82M | 206.93M | 172.4M | 164.55M | 97.09M | -374.2M | -69.16M | -113.81M | 259.36M | -168.98M | 35.03M | 439.4M | 517.02M | 238.32M | 151.33M | 127.43M | 124.22M | 85.02M | 59.7M | 48.5M | 39.8M | 32M |
| Effective Tax Rate % | 24.71% | 24.83% | 24.67% | 25.53% | 24.49% | 24.24% | 23.9% | 25.05% | 19.89% | 34.24% | 35.13% | 32.19% | 32.61% | 36.27% | -331.32% | 235.51% | 97.12% | -52.24% | 36.2% | 49.56% | 39% | 39.08% | 36.81% | 36.81% | 36.69% | 36.76% | 36.81% | 36.69% | 36.11% | 36.99% | 37.34% |
| Net Income | 1.2B | 1.35B | 1.57B | 1.37B | 1.29B | 833.63M | 446.62M | 590.01M | 748.15M | 535.5M | 382.1M | 363.17M | 340.03M | 170.61M | 487.15M | 39.8M | -3.37M | -755.83M | -297.81M | 35.65M | 687.21M | 806.11M | 409.11M | 259.82M | 219.89M | 213.67M | 145.94M | 101.5M | 84.7M | 65M | 53.7M |
| Net Margin % | 11.14% | 12.28% | 14.49% | 13.73% | 12.52% | 9.48% | 6.31% | 8.17% | 10.47% | 9.21% | 7.39% | 8.71% | 8.69% | 6.38% | 25.87% | 2.7% | -0.23% | -43.06% | -9.43% | 0.77% | 11.22% | 13.91% | 10.51% | 9.36% | 9.44% | 9.58% | 8.09% | 6.97% | 7.02% | 6.69% | 7.06% |
| Net Income Growth % | -12.86% | -14.3% | 14.51% | 6.65% | 54.33% | 86.65% | -24.3% | -21.14% | 39.71% | 40.15% | 5.21% | 6.8% | 99.31% | -64.98% | 1124.14% | 1279.46% | 99.55% | -153.79% | -935.35% | -94.81% | -14.75% | 97.04% | 57.46% | 18.16% | 2.91% | 46.41% | 43.79% | 19.83% | 30.31% | 21.04% | 7.62% |
| Net Income (Continuing) | 1.2B | 1.35B | 1.57B | 1.37B | 1.29B | 833.63M | 446.62M | 590.01M | 748.15M | 535.5M | 382.1M | 363.17M | 340.03M | 170.61M | 487.15M | 39.8M | -3.37M | -755.83M | -297.81M | 35.65M | 687.21M | 806.11M | 409.11M | 259.82M | 219.89M | 213.67M | 145.94M | 103M | 85.8M | 67.8M | 53.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 10.77M | 15.4M | 15.79M | 16.05M | 15.75M | 45.43M | 52.24M | 46.88M | 8.71M | 5.9M | 5.91M | 5.52M | 6.32M | 6.18M | 6.17M | 6.2M | 3.56M | 3.28M | 0 | 8.01M | 7.7M | 3.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 12.54 | 13.49 | 15.01 | 12.36 | 10.90 | 6.63 | 3.40 | 4.03 | 4.85 | 3.17 | 2.18 | 1.97 | 1.84 | 0.97 | 2.86 | 0.24 | -0.02 | -4.68 | -1.88 | 0.22 | 4.17 | 4.78 | 2.52 | 1.72 | 1.46 | 1.38 | 0.98 | 0.68 | 0.56 | 0.45 | 0.38 |
| EPS Growth % | -8.52% | -10.13% | 21.44% | 13.39% | 64.4% | 95% | -15.63% | -16.91% | 53% | 45.41% | 10.66% | 7.07% | 89.69% | -66.08% | 1091.67% | 1276.47% | 99.56% | -148.94% | -954.55% | -94.72% | -12.76% | 89.68% | 46.51% | 17.81% | 5.8% | 40.82% | 44.12% | 21.43% | 24.44% | 18.42% | 8.57% |
| EPS (Basic) | - | 13.60 | 15.16 | 12.47 | 11.02 | 6.72 | 3.43 | 4.07 | 4.92 | 3.30 | 2.27 | 2.06 | 1.91 | 1.01 | 2.91 | 0.24 | -0.02 | -4.68 | -1.88 | 0.23 | 4.45 | 5.23 | 2.75 | 1.84 | 1.56 | 1.49 | 1.00 | 0.69 | 0.58 | 0.48 | 0.40 |
| Diluted Shares Outstanding | 95.57M | 99.78M | 104.69M | 111.01M | 117.97M | 125.81M | 131.25M | 146.5M | 154.2M | 169.49M | 175.97M | 184.7M | 185.88M | 177.96M | 170.15M | 168.38M | 165.67M | 161.55M | 158.73M | 164.17M | 164.85M | 168.55M | 162.33M | 151.08M | 150.96M | 154.73M | 149.65M | 149.74M | 153.44M | 145.25M | 143.2M |
| Basic Shares Outstanding | 94.91M | 98.98M | 103.65M | 110.02M | 116.77M | 124.1M | 130.09M | 145.01M | 151.98M | 162.22M | 168.26M | 176.43M | 177.58M | 169.29M | 167.35M | 167.14M | 165.67M | 161.55M | 158.73M | 155.32M | 154.3M | 154.27M | 148.65M | 141.34M | 140.94M | 143.34M | 145.08M | 146.76M | 145.93M | 136.13M | 135.09M |
| Dividend Payout Ratio | - | 7.21% | 5.94% | 6.64% | 6.91% | 9.19% | 12.67% | 10.79% | 8.25% | 7.21% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying TOL stock.
For fiscal year 2025, Toll Brothers, Inc. (TOL) reported total revenue of $10.97B. This represents a 1341.7% increase compared to $760.7M in 1996.
Toll Brothers, Inc. (TOL) is profitable, generating $1.35B in net income for the fiscal year ending 2025 with a net profit margin of 12.3%.
Toll Brothers, Inc. (TOL) reported an operating income of $1.72B, resulting in an operating profit margin of 15.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Toll Brothers, Inc. (TOL) generated $2.85B in gross profit for the year, representing a gross profit margin of 26.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Sequential margin compression trend
Metrics are mathematically derived from official filings.
Revenue Growth Deceleration Continues
According to the latest quarterly report, TOL's revenue declined 9.7% year-over-year in 2026Q3, marking a further deceleration from the 7.6% decline in the prior quarter and a sharp reversal from the 8.0% growth seen in 2025Q3.
The sequential slowdown in revenue growth suggests the company is facing headwinds in converting its backlog, likely due to the 'lock-in' effect on move-up buyers in a sustained high-rate environment. The year-over-year contraction, after a period of moderate growth in late 2024 and early 2025, indicates the demand trajectory for luxury homes is now firmly in a cyclical trough.
Structural Margin Erosion Underway
Based on the income statement, TOL's gross margin has compressed by over 380 basis points from 27.2% in 2024Q3 to 23.5% in 2026Q3, a decline that appears to be accelerating sequentially and is now below the average of its primary peer group.
This persistent margin compression suggests that TOL's pricing power is being tested, potentially by a combination of higher incentive usage to drive sales and input cost inflation that is not being fully passed through. The downward trajectory from a peak of 30.3% in 2024Q2 signals a fundamental shift in the profitability profile of the company's delivered homes, moving it from a premium margin position toward peer averages.
SG&A Discipline Fails to Offset Gross Weakness
Despite operating in a revenue-contracted environment, TOL's SG&A expenses have remained relatively stable as a percentage of revenue, which has failed to offset the significant decline in gross profit and is exacerbating the operating income pressure.
The fixed nature of a portion of SG&A is becoming a drag on profitability as revenue declines; for instance, SG&A was 10.5% of revenue in 2026Q3 versus 9.1% in 2024Q3. This indicates limited operating leverage on the downside, as the company cannot reduce overhead proportionally with the falling revenue volume, directly compressing operating margins.
Negative Operating Leverage Amplifies Earnings Decline
As reported in recent financial statements, operating income for TOL fell 27.7% year-over-year in 2026Q3, a steeper decline than the 9.7% revenue drop, confirming the presence of significant negative operating leverage.
The fact that operating income is contracting faster than revenue implies that the company's cost structure is not fully variable, making it sensitive to volume declines. This dynamic is clearly visible in the operating margin, which has fallen to 13.5% from a peak of 22.0% just two years prior, demonstrating how gross margin erosion flows directly to the bottom line with minimal offset from overhead efficiency.
The Pricing Power Thesis Is Under Pressure
The most significant analytical challenge to TOL's narrative is the accelerating deterioration in gross margin, which undermines the core thesis that its luxury brand commands sustainable, premium pricing power relative to mass-market peers.
While management maintains its focus on execution, the 380 basis point gross margin decline over two years suggests that affluent buyers are becoming more price-sensitive or that competitive dynamics are forcing concessions. This trend, if it continues, would permanently re-rate the company's profitability lower and challenge the premium valuation multiple it has historically commanded versus volume builders.