Description

Toll Brothers: Millennials, Gen Z & Wealth Transfer—A Powerful Demand Engine Behind Luxury Housing!

Toll Brothers reported first quarter fiscal 2026 results that generally met or exceeded expectations across most metrics. The company delivered 1,899 homes, generating $1.85 billion in homebuilding revenue, which was approximately $24 million above the midpoint of guidance. Adjusted gross margin came in at 26.5%, 25 basis points above guidance, while SG&A margin also beat by 30 basis points. Earnings per diluted share rose 25% year-over-year to $2.19, outperforming the implied guidance by $0.05. In contractual activity, Toll Brothers signed 2,303 net contracts valued at $2.4 billion—flat in units but up 3% in dollars from the prior year—reflecting a 3% increase in average sales price to about $1,033,000. The company continues to balance its product mix between build-to-order homes, which carry higher margins, and faster-turning spec homes with somewhat lower margins.