Toll Brothers Starts Fiscal 2026 Strong with Q1 Results

Homebuilder reports solid earnings, stable incentives, and continued strength in key regions

Published on Feb. 23, 2026

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Toll Brothers (NYSE:TOL) executives said the company started fiscal 2026 with first-quarter results that met or exceeded guidance across most measures, supported by stable incentives, a balanced build-to-order and spec strategy, and continued strength in several key regions. The company also announced a leadership transition, with Karl Mistry set to become the third CEO on March 30 as Douglas Yearley transitions to executive chairman.

Why it matters

Toll Brothers' strong Q1 performance and positive outlook provide insights into the current state of the luxury homebuilding market, which has faced affordability challenges in recent years. The company's balanced approach to spec and build-to-order homes, as well as its focus on high-end finishes and architectural craftsmanship, suggest continued demand for premium housing products despite broader economic conditions.

The details

For the fiscal first quarter, Toll Brothers delivered 1,899 homes and generated $1.85 billion of homebuilding revenue, which was about $24 million above the midpoint of guidance. The company reported earnings of $2.19 per diluted share, up 25% from $1.75 in the prior-year period and slightly above implied guidance. Net contracts signed totaled 2,303 for $2.4 billion, flat in units and up 3% in dollars versus the prior-year quarter. The company maintained incentives at about 8% of sales price, marking the third consecutive quarter with incentives flat on that basis.

  • Toll Brothers will transition to its third CEO, Karl Mistry, on March 30.
  • For the fiscal first quarter, Toll Brothers delivered 1,899 homes and generated $1.85 billion of homebuilding revenue.

The players

Toll Brothers

A publicly traded homebuilding company that focuses on designing and constructing luxury residential properties.

Douglas Yearley

The current CEO of Toll Brothers who will transition to the role of executive chairman on March 30.

Karl Mistry

The incoming CEO of Toll Brothers, who has been with the company for more than 20 years and currently leads all eastern operations.

Gregg Ziegler

The CFO of Toll Brothers.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

Toll Brothers' strong start to fiscal 2026, with stable incentives, a balanced approach to spec and build-to-order homes, and continued strength in key regions, suggests the luxury homebuilder is well-positioned to navigate the current affordability challenges in the housing market. The company's leadership transition and focus on high-end finishes and architectural craftsmanship also indicate its commitment to serving the premium segment of the U.S. housing market.