Toll Brothers Reports 15% Revenue Increase to $2.15 Billion for Quarter Ended January 31, 2026

Toll Brothers, Inc. reported a revenue increase of 15% for the three months ended January 31, 2026, reaching $2.15 billion compared to $1.86 billion in the same period last year. Home sales contributed $1.85 billion, a slight increase from $1.84 billion, while land sales and other revenues surged to $290.6 million from $18.4 million, primarily due to the sale of approximately half of the company's Apartment Living portfolio. The net income for the quarter was $210.9 million, reflecting a 19% increase from $177.7 million in the prior year.

The company experienced a decrease in the number of homes delivered, with 1,899 units in the latest quarter compared to 1,991 units a year earlier, marking a 5% decline. However, the average delivered price rose by 6% to $976,800, driven by a favorable mix of higher-priced homes in certain regions. The backlog of homes under contract decreased to $6.02 billion, representing 5,051 homes, down from $6.94 billion and 6,312 homes a year prior, indicating a 20% reduction in units but an 8% increase in average contracted price.

Operationally, Toll Brothers signed 2,303 net contracts valued at $2.38 billion, a slight increase in dollar terms but flat in unit count compared to the previous year. The company continues to adapt to market conditions by managing pricing and increasing sales incentives to stimulate demand amid ongoing affordability challenges. The strategic shift towards building more spec homes, which accounted for approximately 50% of homebuilding revenues, has allowed for quicker sales cycles, although these homes typically yield lower margins.

In terms of financial health, Toll Brothers reported $1.20 billion in cash and cash equivalents as of January 31, 2026, with no outstanding borrowings under its $2.35 billion revolving credit facility. The company has a debt-to-total capitalization ratio of 0.24 to 1.00, indicating a strong balance sheet. Looking ahead, Toll Brothers anticipates continued challenges in the housing market but remains optimistic about long-term demand driven by favorable demographics and a structural undersupply of homes in the U.S. The company plans to maintain its focus on strategic land acquisitions and community development to support future growth.