Toll Brothers reported strong Q earnings with revenue up 15.4% YoY and EPS up 25.1% YoY. ACCE score sits at 76/100. Here's what the numbers show.
What changed
Toll Brothers (TOL) reported earnings on May 19, 2026, and the headline numbers came in strong. Revenue grew 15.4% year over year, while earnings per share climbed 25.1% over the same period. The fact that EPS growth outpaced revenue growth by roughly 10 percentage points points to meaningful margin expansion or share count reduction — likely both.
At a current price of $126.63 and a market cap of $12.02B, the stock trades at a trailing P/E of 9.1 and a forward P/E of 8.9. Those are low multiples for a company growing earnings at 25% annually. The forward P/E compressing slightly below the trailing figure suggests the market expects earnings to keep moving higher.
The analyst consensus target sits at $168.38, which represents roughly 33% upside from the current price. That gap between price and target is notable, though analyst targets carry their own limitations.
The dividend yield stands at 0.8%, a modest income component for what is primarily a growth and value story.
What it means
The ACCE score for TOL is 76 out of 100, which puts it in solid territory on our composite model. That score reflects the combination of earnings momentum, valuation, and fundamental quality the data shows here.
The homebuilding sector has faced real headwinds from elevated mortgage rates over the past two years. Toll Brothers operates at the luxury end of the residential market, which gives it some insulation from rate sensitivity compared to entry-level builders — buyers at that price point tend to carry more cash or equity. The 15.4% revenue growth suggests demand held up better than the macro backdrop might imply.
A trailing P/E of 9.1 is low in absolute terms and low relative to the broader Consumer Cyclical sector. Markets often apply compressed multiples to homebuilders because earnings are cyclical and investors discount the peak. But a 25.1% EPS gain is not a peak-cycle whisper — it is a concrete print.
We do not have guidance commentary from this earnings release, so we cannot speak to what management said about the back half of fiscal 2026 or order trends. That is a meaningful gap. Backlog and cancellation rates are key metrics for homebuilders, and without that color, the forward picture stays incomplete.
For the full current price and updated score, visit acceinvestments.com/stocks/TOL.