Toro Reports 4.2% Revenue Gain to $1.04B in Q1 FY2026

The Toro Company (NYSE: TTC), a manufacturer of turf maintenance and landscape equipment, reported net sales of $1.04 billion for the three months ended January 30, 2026, up 4.2% from $995.0 million in the same quarter a year earlier. Net income for the quarter rose to $67.9 million, compared with $52.8 million in the prior-year period, a gain of 28.6%. Read more earnings reports.

Gross profit held nearly flat at $336.5 million versus $335.6 million a year ago, reflecting a gross margin of 32.5% compared with 33.7% in the prior year. Cost of goods sold increased to $699.8 million from $659.4 million, outpacing the revenue gain.

Operating income improved to $87.1 million from $77.8 million, a 12.0% increase. Selling, general, and administrative expenses declined to $249.4 million from $257.8 million, a drop of $8.4 million that helped drive the operating income expansion despite the margin compression on the gross profit line.

Diluted earnings per share came in at $0.69, up from $0.52 in the year-ago quarter. The company had 98.3 million weighted average diluted shares outstanding for the quarter, down from 101.7 million a year earlier. Basic shares outstanding as of January 30, 2026 totaled 96.9 million.

Cash flow from operations turned positive at $26.1 million for the quarter, reversing a $48.6 million outflow in the same period last year. Cash used in investing activities was $210.4 million, largely reflecting increased capital deployment compared with $19.1 million a year ago. The company generated $25.1 million from financing activities, down from $44.6 million in the prior-year quarter.

The company ended the quarter with total assets of $3.70 billion, up marginally from $3.69 billion a year earlier but up from $3.44 billion at the end of fiscal 2025. Current assets declined to $1.74 billion from $1.90 billion a year ago, driven by a $159.4 million decrease in inventory to $983.7 million. Cash and restricted cash stood at $189.0 million versus $171.3 million a year earlier.

Total liabilities rose to $2.28 billion from $2.23 billion a year ago. Long-term debt decreased to $1.06 billion from $1.09 billion at the end of the prior fiscal year. Stockholders' equity was $1.42 billion as of January 30, 2026, down from $1.47 billion a year earlier, reflecting share repurchase activity and retained earnings movements.

Goodwill increased to $592.1 million from $449.8 million a year ago, while intangible assets declined to $445.7 million from $490.6 million. The company's income tax expense for the quarter was $19.0 million, up from $13.3 million in the same period last year.