Toronto Dominion Bank (NYSE:TD) Announces Quarterly Earnings Results

Toronto Dominion Bank (NYSE:TD) (TSE:TD) issued its quarterly earnings data on Thursday. The bank reported $1.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.63 by $0.11, Zacks reports. Toronto Dominion Bank had a net margin of 13.20% and a return on equity of 14.80%. The company had revenue of $11.80 billion during the quarter, compared to the consensus estimate of $11.04 billion. During the same quarter last year, the company earned $1.97 earnings per share. Toronto Dominion Bank’s revenue for the quarter was down 31.1% on a year-over-year basis.

Here are the key takeaways from Toronto Dominion Bank’s conference call:

• TD reported a strong second quarter with EPS up 21% year over year and ROE of 14.4%, while management said the bank is tracking ahead of its fiscal 2026 targets for EPS growth and ROE if macro conditions hold.
• Core businesses showed broad momentum, including record revenue, pre-tax pre-provision earnings, and earnings in Canadian Personal and Commercial Banking, plus record results in Wealth, Insurance, and Wholesale Banking.
• TD said its AML remediation program is making progress, with look-back work advancing and costs expected to moderate in the second half of the year, broadly in line with its prior CAD 500 million full-year guidance.
• Management remained upbeat on strategic growth opportunities, highlighting improving U.S. banking loan growth, strong card acquisition, and continued strength in wealth referrals and direct investing. Executives also said the bank is ahead of pace on structural cost reduction and AI value creation.
• Credit remained solid overall, with PCLs stable at 43 bps and impaired PCLs declining quarter over quarter, though the bank added some reserves due to a weaker macro outlook and noted pressure could build from tariffs, the Middle East conflict, and Canadian consumer stress.

Toronto Dominion Bank Stock Up 0.4%

TD stock opened at $113.74 on Friday. Toronto Dominion Bank has a twelve month low of $68.08 and a twelve month high of $114.26. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.09. The company has a market capitalization of $188.38 billion, a P/E ratio of 17.74, a PEG ratio of 1.27 and a beta of 0.71. The firm has a 50 day simple moving average of $103.24 and a 200-day simple moving average of $96.05.

Toronto Dominion Bank Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Friday, July 10th will be given a dividend of $1.12 per share. The ex-dividend date of this dividend is Friday, July 10th. This is an increase from Toronto Dominion Bank’s previous quarterly dividend of $1.08. This represents a $4.48 dividend on an annualized basis and a dividend yield of 3.9%. Toronto Dominion Bank’s dividend payout ratio is 34.36%.

Trending Headlines about Toronto Dominion Bank

Here are the key news stories impacting Toronto Dominion Bank this week:

• Positive Sentiment: TD reported Q2 adjusted EPS of $2.38, up 21% year over year, and adjusted earnings of $4.2 billion, both ahead of expectations. Revenue also topped estimates, helped by strength in Canadian banking, wealth, and wholesale banking. TD Bank Group Reports Second Quarter 2026 Results
• Positive Sentiment: The bank lifted its quarterly dividend to $1.12 per share, a 3.7% increase, signaling confidence in capital generation and adding to its appeal for income-focused investors. TD BANK GROUP DECLARES DIVIDENDS
• Positive Sentiment: Management also guided to a $7 billion buyback, which should support per-share metrics and reinforce the view that capital returns remain a priority. TD Bank Q2 Earnings: Still A Buy, For Now
• Positive Sentiment: TD’s AI rollout in mortgage lending highlights an efficiency initiative that could reduce processing time, improve customer experience, and lower operating costs over time. TD Bank Puts Agentic AI To Work In Core Mortgage Lending
• Neutral Sentiment: Other major Canadian banks also beat earnings expectations, which helps confirm that the sector backdrop remains healthy, though it is not unique to TD. Canadian Banks Extend Earnings Beat Streak As Capital Markets Profit Jumps 27%
• Neutral Sentiment: Analysts note TD still faces AML-related remediation costs and a higher valuation after the rally, but these concerns were outweighed by the quarter’s strong operating performance. TD Bank Q2 Earnings: Still A Buy, For Now

Institutional Trading of Toronto Dominion Bank

Hedge funds have recently made changes to their positions in the stock. The Manufacturers Life Insurance Company boosted its holdings in Toronto Dominion Bank by 10.6% in the fourth quarter. The Manufacturers Life Insurance Company now owns 17,014,836 shares of the bank’s stock worth $1,606,978,000 after purchasing an additional 1,629,062 shares during the period. AQR Capital Management LLC boosted its holdings in Toronto Dominion Bank by 1,443.3% in the fourth quarter. AQR Capital Management LLC now owns 1,449,855 shares of the bank’s stock worth $136,642,000 after purchasing an additional 1,355,907 shares during the period. Bank of Nova Scotia boosted its holdings in Toronto Dominion Bank by 6.8% in the fourth quarter. Bank of Nova Scotia now owns 19,486,741 shares of the bank’s stock worth $1,836,518,000 after purchasing an additional 1,234,510 shares during the period. Caisse de depot et placement du Quebec boosted its holdings in Toronto Dominion Bank by 70.1% in the third quarter. Caisse de depot et placement du Quebec now owns 2,360,000 shares of the bank’s stock worth $188,746,000 after purchasing an additional 972,513 shares during the period. Finally, Amundi boosted its holdings in Toronto Dominion Bank by 27.3% in the fourth quarter. Amundi now owns 3,448,492 shares of the bank’s stock worth $324,894,000 after purchasing an additional 739,679 shares during the period. Institutional investors and hedge funds own 52.37% of the company’s stock.

Analyst Ratings Changes

Several brokerages have issued reports on TD. Canadian Imperial Bank of Commerce downgraded shares of Toronto Dominion Bank from a “strong-buy” rating to a “hold” rating in a research report on Thursday, February 12th. Wall Street Zen downgraded shares of Toronto Dominion Bank from a “hold” rating to a “sell” rating in a research report on Saturday, May 23rd. Scotiabank raised shares of Toronto Dominion Bank from a “sector perform” rating to a “sector outperform” rating in a research report on Monday, May 4th. Zacks Research downgraded shares of Toronto Dominion Bank from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. Finally, Raymond James Financial raised shares of Toronto Dominion Bank from a “market perform” rating to an “outperform” rating in a research report on Tuesday, May 12th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy”.

About Toronto Dominion Bank

Toronto-Dominion Bank (TD) is a Canadian multinational banking and financial services company headquartered in Toronto, Ontario. Formed through the 1955 merger of the Bank of Toronto (founded 1855) and the Dominion Bank (founded 1869), TD is one of Canada’s largest banks and offers a broad range of financial products and services to individual, small business, commercial and institutional clients.

TD’s core businesses include Canadian and U.S. personal and commercial banking, wealth management, wholesale banking and insurance.