$TOL Reports Earnings: Revenue Dips 7.6%, Valuation Gap Widens
Toll Brothers reported earnings on Aug 18, 2026. Revenue fell 7.6% YoY, yet the 6-model fair value sits at $208.45, a 46.8% premium to the current price.
$TOL (Toll Brothers Inc.) reported earnings on August 18, 2026. Quarterly revenue declined 7.6% year over year, a meaningful step back for the luxury homebuilder. We do not have verified EPS growth figures for this period, so readers should check the live page at acceinvestments.com/stocks/TOL for the full earnings breakdown. We also do not have guidance commentary from this report.
The stock trades at $142.02 with a market cap of $13.27B. The trailing P/E sits at 11.0 and the forward P/E at 10.1, both well below typical Consumer Cyclical multiples, which feeds directly into $TOL's Value score of 80/100 — the standout component of its ACCE breakdown.
What it means
The ACCE score for $TOL currently sits at 48/100, a middling read that reflects a real tension in the data. The Value score of 80 and Quality score of 68 are strong. The Growth score of 7 is not — and a 7.6% revenue decline does nothing to help that number. Momentum at 38 reflects a stock that has moved but hasn't broken out, with a 1-year return of +8.3%.
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The most striking figure in the data is the 6-model fair value estimate of $208.45, which sits 46.8% above the current price of $142.02. That gap is wide. The analyst consensus target of $168.20 is more conservative but still implies meaningful upside from current levels.
On the quality side, the fundamentals hold up. ROE comes in at +15.7%, net margin at +11.7%, and FCF yield at +4.6%. Earnings quality is flagged as strong. For a homebuilder navigating a difficult rate environment, those are not soft numbers. The dividend yield adds a modest +0.7%.
The core tension here is straightforward: the business generates solid returns and trades at a low multiple, but top-line momentum is moving in the wrong direction. A Growth score of 7 is a signal that the model sees limited near-term revenue acceleration, and this quarter's decline reinforces that read.
Whether the valuation gap closes depends heavily on the housing cycle and where mortgage rates go from here. $TOL's positioning in the luxury segment gives it some insulation from first-time buyer affordability pressure, but it is not immune to volume slowdowns.
For current price, full earnings figures, and score updates, visit acceinvestments.com/stocks/TOL.
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