Toll Brothers Posts $210.9M Q1 Profit, Up 19% as Home Sales Rise

Toll Brothers, Inc. (NYSE: TOL), a luxury homebuilder, reported net income of $210.9 million for the three months ending January 31, 2026, up 19% from $177.7 million in the same period a year earlier. Diluted earnings per share rose to $2.19 from $1.75. Read more earnings reports.

Operating income for the first quarter of fiscal 2026 came in at $219.1 million, essentially flat compared to $219.1 million in the prior-year quarter. The company's total revenue for the period was $29.3 million, compared to $17.2 million a year earlier.

Cost of goods sold increased to $1.67 billion for the quarter ending January 31, 2026, from $1.40 billion in the year-ago period. Selling, general and administrative expenses climbed to $257.9 million from $240.4 million.

The Delaware-incorporated company paid $62.6 million in income taxes for the quarter, up from $43.7 million a year earlier. The higher tax expense reflected the increase in pre-tax income.

Balance Sheet and Cash Position

Total assets stood at $14.43 billion as of January 31, 2026, down slightly from $14.52 billion at October 31, 2025. Cash and cash equivalents totaled $1.20 billion at quarter-end, compared to $1.26 billion three months earlier and $574.8 million at January 31, 2025.

Total liabilities declined to $6.01 billion from $6.23 billion at the end of the prior quarter. Stockholders' equity rose to $8.41 billion from $8.27 billion.

Cash Flow Activity

Cash from operations was $7.3 million for the quarter, a marked improvement from negative $420.8 million in the year-ago period. Cash from investing activities totaled $187.7 million, compared to negative $119.5 million a year earlier. The company used $257.3 million in financing activities, compared to $177.2 million in the prior-year quarter.

Share Count and Per-Share Metrics

Weighted average diluted shares outstanding declined to 96.5 million from 101.8 million a year earlier. Basic shares outstanding dropped to 95.7 million from 100.8 million. The company had 94.7 million shares outstanding as of January 31, 2026.