Toro (NYSE:TTC) Announces Quarterly Earnings Results

Toro (NYSE:TTC) posted its earnings results on Thursday. The company reported $1.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.50 by $0.10, FiscalAI reports. Toro had a net margin of 7.29% and a return on equity of 31.13%. The business had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.39 billion. During the same period in the prior year, the company posted $1.42 EPS. The company’s revenue for the quarter was up 8.1% on a year-over-year basis. Toro updated its FY 2026 guidance to 4.500-4.620 EPS.

Here are the key takeaways from Toro’s conference call:

• The Toro Company reported a strong second quarter, with sales up 8.1%, adjusted EPS of $1.60, and its second straight quarter of double-digit adjusted earnings growth.
• Margins improved meaningfully as adjusted operating margin reached 14.4%, the best in 12 quarters, helped by the AMP productivity program and operational efficiencies.
• Demand was broad-based across the portfolio, with Professional segment sales up 9% and standout growth in underground and specialty construction, including strong momentum for the JT-120 drill and Orange Intel platform.
• Management raised full-year guidance, now expecting sales growth of 4%-6.5% and adjusted EPS of $4.50-$4.62, while noting higher inflation and tariff costs will be largely offset by pricing and productivity actions.
• The company generated strong cash flow, with $266 million of free cash flow and 125% conversion in the quarter, enabling continued shareholder returns and supporting a healthy 1.4 leverage ratio.

Toro Stock Down 2.0%

Shares of Toro stock opened at $87.08 on Monday. Toro has a twelve month low of $67.04 and a twelve month high of $105.18. The company has a current ratio of 1.56, a quick ratio of 0.74 and a debt-to-equity ratio of 0.74. The company has a fifty day moving average price of $92.94 and a 200 day moving average price of $89.07. The stock has a market cap of $8.44 billion, a price-to-earnings ratio of 25.10 and a beta of 0.70.

Toro Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Shareholders of record on Tuesday, June 16th will be paid a dividend of $0.39 per share. The ex-dividend date is Tuesday, June 16th. This represents a $1.56 annualized dividend and a yield of 1.8%. Toro’s dividend payout ratio is currently 44.96%.

Insider Activity

In related news, Director James Calvin O’rourke sold 4,951 shares of the company’s stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $99.40, for a total value of $492,129.40. Following the completion of the transaction, the director directly owned 2,704 shares in the company, valued at approximately $268,777.60. This represents a 64.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Richard M. Olson sold 119,400 shares of Toro stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $100.15, for a total value of $11,957,910.00. Following the sale, the chief executive officer directly owned 38,186 shares in the company, valued at $3,824,327.90. The trade was a 75.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 1.88% of the company’s stock.

Institutional Trading of Toro

A number of hedge funds have recently modified their holdings of the company. Danske Bank A S bought a new stake in shares of Toro in the third quarter valued at about $46,000. Harvest Fund Management Co. Ltd purchased a new stake in Toro in the 3rd quarter valued at about $119,000. Caxton Associates LLP bought a new stake in Toro during the first quarter valued at approximately $285,000. Integrated Wealth Concepts LLC lifted its position in Toro by 10.6% in the 1st quarter. Integrated Wealth Concepts LLC now owns 6,136 shares of the company’s stock worth $446,000 after buying an additional 586 shares during the last quarter. Finally, Focus Partners Wealth increased its stake in Toro by 191.5% in the 1st quarter. Focus Partners Wealth now owns 7,586 shares of the company’s stock worth $552,000 after purchasing an additional 4,984 shares during the period. 87.95% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

TTC has been the topic of several research reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Toro in a research report on Friday, April 17th. DA Davidson boosted their price target on shares of Toro from $97.00 to $117.00 and gave the stock a “buy” rating in a report on Monday, March 9th. Raymond James Financial downgraded shares of Toro from an “outperform” rating to a “market perform” rating in a research report on Wednesday, February 18th. Robert W. Baird reduced their price objective on shares of Toro from $105.00 to $100.00 and set a “neutral” rating on the stock in a report on Friday. Finally, Wall Street Zen raised shares of Toro from a “buy” rating to a “strong-buy” rating in a research report on Sunday, March 15th. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, Toro currently has a consensus rating of “Hold” and an average target price of $101.75.

Toro News Summary

Here are the key news stories impacting Toro this week:

• Positive Sentiment: Toro beat Q2 expectations, reporting EPS of $1.60 versus $1.50 expected and revenue of $1.42 billion versus $1.39 billion expected, with revenue up 8.1% year over year. Toro (TTC) Q2 2026 Earnings Transcript
• Positive Sentiment: The company raised FY2026 guidance, signaling continued demand and management confidence after a margin improvement breakthrough. Toro Company Lifts Outlook After Margin Breakthrough
• Positive Sentiment: Management framed the results as benefiting from strong revenue growth and improving profitability, which could support longer-term earnings estimates. The Toro Co (TTC) Q2 2026 Earnings Call Highlights
• Neutral Sentiment: Robert W. Baird lowered its price target on Toro to $100 from $105 while keeping a neutral rating, suggesting the stock may be fairly valued after the post-earnings move. Tickerreport.com
• Neutral Sentiment: The company also declared a quarterly dividend of $0.39 per share, reinforcing cash-return discipline but not likely to be the main driver of the shares. The Toro Company Gears Up For Q2 Print

About Toro

The Toro Company (NYSE: TTC) specializes in the design, manufacture and marketing of a broad range of outdoor environment equipment for residential, commercial and professional markets. Its product portfolio includes lawn mowers, utility vehicles, snow throwers, irrigation systems and landscape maintenance equipment. Toro’s offerings span walk-behind and ride-on mowers, zero-turn radius mowers, snow blowers, sprinklers, drip irrigation products, spreaders and specialty turf maintenance machines tailored to golf courses, sports fields and municipal parks.

Founded in 1914 and headquartered in Bloomington, Minnesota, Toro has built a century-long legacy of innovation in the grounds-care industry.