Revenue growth remains volatile with a 7.6% year-over-year contraction in 2026Q2, while operating margins have compressed significantly from 22.0% in 2024Q2 to 13.7% in 2026Q2.
| 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 | 11.05B | 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 % | 3.62% | 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 | 8.3B | 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 | 2.75B | 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 % | 24.89% | 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 | 1.13B | 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 | 1.05B | 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 | 3M | 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 | 1.62B | 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 % | 14.64% | 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 | 1.68B | 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 % | 15.22% | 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 % | -9.64% | -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) | 60.38M | 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 | 1.71B | 1.78B | 2.04B | 1.72B | 1.51B | 1.02B | 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 | 64.8M | 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 | 64.8M | 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 | 98.92M | 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 | 1.72B | 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 % | 15.54% | 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 | 428.56M | 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 % | 24.97% | 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 | 1.29B | 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 % | 11.66% | 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 % | -6.69% | -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) | 1.29B | 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 | 10.84M | 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) | 13.45 | 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 % | -1.93% | -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 | 95.75M | 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 | 95.14M | 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% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Luxury market demand sensitivity
As reported in recent financial filings, Toll Brothers experienced a 7.6% year-over-year revenue contraction in 2026Q2, highlighting the inherent lumpiness of its luxury-focused delivery model and the ongoing challenges in converting backlog into closed sales within a high-interest-rate environment that constrains move-up buyer mobility.
The revenue trajectory appears increasingly erratic, oscillating between double-digit growth and contraction over the last ten quarters. This volatility suggests that the company's reliance on high-end, customized homebuilding makes it susceptible to timing delays and the broader economic health of affluent demographics.
Based on the provided income statement data, gross margins have retreated from a peak of 30.3% in 2024Q2 to 23.9% in 2026Q2, indicating that the company's ability to command premium pricing is facing significant headwinds as market conditions normalize and input costs remain elevated.
The erosion of gross margin suggests that Toll Brothers may be sacrificing pricing power to maintain volume in a more competitive landscape. Investors should monitor whether this trend represents a structural shift in the luxury housing market or a temporary adjustment to current macroeconomic constraints.
According to the company's quarterly income statements, operating margins have compressed from 22.0% in 2024Q2 to 13.7% in 2026Q2, demonstrating that the firm is struggling to maintain operating leverage as revenue growth fails to outpace the fixed costs inherent in its land-heavy business model.
The decline in operating margin indicates that SG&A expenses are becoming a larger burden relative to the company's top-line performance. This trend warrants further investigation into whether management can effectively scale down overhead costs during periods of decelerating revenue growth.
Financial data suggests that Toll Brothers' commitment to a land-heavy strategy, while historically advantageous, creates significant downside risk, as evidenced by the recent margin compression and the potential for non-cash impairment charges if the luxury housing market experiences a sustained, multi-year valuation correction.
Short-sellers may focus on the company's heavy reliance on land ownership, which ties up significant capital and reduces flexibility compared to asset-light peers. The potential for future land write-downs remains a latent risk that could disproportionately impact net income if the current luxury demand cycle falters.
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.