
Toll Brothers (TOL) Stock Forecast & Price Target
Toll Brothers (TOL) Analyst Ratings
Bulls say
Toll Brothers is viewed favorably because its luxury positioning, above-average ASPs, and strong land portfolio support pricing power and margins even in a tougher housing backdrop. Management’s commentary that the high end of the market has not weakened relative to lower tiers, plus 2026 guidance for 10,500-10,600 deliveries, $995K-$1,000K ASP, and a 26.1% adjusted home sale gross margin, reinforces confidence in earnings resilience. The firm also backs that view with a $700 million share repurchase target, while 2027 EPS of $14.44 remains only 4% below FY24, suggesting durable profitability and limited downside to fundamentals.
Bears say
Toll Brothers is facing a softer fundamental backdrop as FY3Q26 EPS fell 20% y/y to $2.97, despite modestly beating Street expectations, because home sale revenue declined 8% to $2,652 million and home sale gross margin compressed about 170 basis points to 23.9%. Deliveries of 2,662 homes missed expectations and declined 10% y/y, signaling weaker volume traction even in its luxury niche, while adjusted gross margin only held up after add-backs. The outlook remains negative because rising land costs, a tougher housing market, weaker demand in high-end coastal CA and NYC, and delayed closings could further pressure pricing, margins, and earnings.
This aggregate rating is based on analysts' research of Toll Brothers and is not a guaranteed prediction by Public.com or investment advice.
Toll Brothers (TOL) Analyst Forecast & Price Prediction
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