revenue growth
6.3–6.6 pct
FY 2026
official guidance
THE TORO COMPANY
Last · NYSE$100.82+2.56 (+2.61%)live · yahoo · 46m ago
Market cap$9.54B94.7M sh
P/E · TTM26.9fwd 19.8 · eps 3.75
Beta—vs S&P 500
Div yield1.58%annual · TTM
52w range
$67.64$105.19
Volume921.8Ksession
| Revenue | $4.8B |
|---|---|
| Operating income | $489.8M |
| Net income | $363.3M |
| Free cash flow | $711.5M |
| Operating margin | 10.3% |
| Net margin | 7.6% |
| Return on equity | 27.2% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Buy: Toro delivered broad-based Q3 strength, with sales up 8.4% to $1.23 billion, adjusted EPS up 7.3% to $1.33, and FY2026 EPS guidance raised to $4.60-$4.65 from $4.50-$4.62.
The bull case is durable AMP productivity, improving residential profitability, strong professional demand and $425.1 million of year-to-date free cash flow; the main tension is that Professional operating margin fell 40 bps, while Q4 depends partly on winter demand and includes only $7 million of uncertain IEEPA refunds.
Themes
- Amp Productivity
- Underground Construction
- Residential Margin
- Golf Autonomy
- Ieepa Refunds
- Winter Weather
Near term
Q4 sales guidance implies 3.9%-5.1% growth and EPS of $0.93-$0.98, with residential sales expected approximately flat as Toro laps strong snow-related demand.
Winter weather and the company’s ability to manage dealer inventories will determine near-term snow and residential performance.
The $5 million of IEEPA refunds excluded from Q4 guidance remains timing-uncertain and could provide upside if recovered.
Longer term
AMP has reached its $125 million run-rate savings target, with management indicating additional productivity benefits should flow into FY2027 after some current-year savings were used to offset tariffs and inflation.
Residential operating margin improved 400 bps to 5.9%; management remains on track for sustainable double-digit margins through route-to-market optimization and portfolio rationalization.
Underground construction has meaningful growth and margin runway from data-center, utility, broadband, soft-excavation and pipe-relining demand; management also described it as a high priority for future capital allocation and acquisitions.
Autonomous golf equipment, electrification and irrigation create differentiated product growth opportunities, but commercialization and installation capacity remain execution dependencies.
CEO succession is a near-term leadership transition risk as Edric Funk assumes the top role, although management presented the transition as planned and supported by strong operating momentum.
Red flags
Professional operating margin declined 40 bps to 20.9% because of unfavorable mix and higher manufacturing costs; Tornado is also dilutive to margin in its first year.
Management did not quantify FY2027 earnings or the precise carryover benefit from AMP, despite analyst pressure on whether productivity can drive above-algorithmic growth.
The $43.1 million non-cash impairment tied to facility exits and product-line rationalization indicates ongoing portfolio and network restructuring.
Tariff exposure is described as minimal and embedded in broader inflation, but the outlook remains dependent on offsets from productivity, sourcing and pricing rather than a fully quantified bridge.
Forward outlook
adjusted eps
4.6–4.65 $per share
FY 2026
official guidance
revenue growth
3.9–5.1 pct
Q4 2026
official guidance
adjusted eps
0.93–0.98 $per share
Q4 2026
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2025-12-17
- Residential Demand
- Amp Savings
- Tariffs
- Backlog Normalization
- Spartan Impairment
- Inventory Risk
- Tornado Integration
Red flags
- The $81.1 million Spartan trade-name impairment fully eliminated that intangible's carrying value, indicating a concrete deterioration in an acquired or developed business asset.
- Inventory valuation reserves rose to $60.5 million from $47.8 million while total inventory remained $920.8 million, signaling elevated obsolescence and demand risk.
- Long-term debt was $921.5 million, while the company returned $441.1 million through dividends and repurchases during a year in which reported net earnings fell 24.5%.
Earnings transcripts
- Motley Fool
Toro (TTC) Q3 2026 Earnings Call Transcript
THE TORO COMPANY
- Issuer webcastVideo
2913 16 20260506 ch
TAIWAN TEA CORPORATION
- Issuer webcastVideo
2913 15 20251104 ch
TAIWAN TEA CORPORATION
- Issuer webcastVideo
2913 14 20250428 ch
TAIWAN TEA CORPORATION
- Issuer webcastVideo
2913 13 20241031 ch
TAIWAN TEA CORPORATION
- Issuer webcastVideo
2913 10 20230424 ch
TAIWAN TEA CORPORATION
Documents
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