Toro (NYSE:TTC) Issues Quarterly Earnings Results

Toro (NYSE:TTC) released its quarterly earnings results on Thursday. The company reported $1.60 EPS for the quarter, topping the consensus estimate of $1.50 by $0.10, FiscalAI reports. The company had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.39 billion. Toro had a return on equity of 31.13% and a net margin of 7.29%.The firm’s revenue was up 8.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.42 earnings per share. 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 Trading Down 2.0%

NYSE:TTC opened at $87.08 on Friday. The company has a current ratio of 1.56, a quick ratio of 0.73 and a debt-to-equity ratio of 0.74. Toro has a 12-month low of $67.04 and a 12-month high of $105.18. The firm has a market cap of $8.44 billion, a P/E ratio of 25.10 and a beta of 0.70. The stock’s 50 day simple moving average is $92.94 and its 200-day simple moving average is $88.94.

Toro Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 16th will be issued a $0.39 dividend. The ex-dividend date of this dividend is Tuesday, June 16th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 1.8%. Toro’s payout ratio is presently 46.71%.

Key Stories Impacting Toro

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

Wall Street Analyst Weigh In

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

Insider Buying and Selling

In related news, CEO Richard M. Olson sold 119,400 shares of Toro stock in a transaction that occurred on Tuesday, March 10th. The stock was 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director James Calvin O’rourke sold 4,951 shares of Toro stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $99.40, for a total value of $492,129.40. Following the completion of the sale, the director owned 2,704 shares in the company, valued at approximately $268,777.60. This trade represents a 64.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.88% of the stock is owned by insiders.

Institutional Trading of Toro

A number of institutional investors have recently modified their holdings of the business. Russell Investments Group Ltd. boosted its stake in shares of Toro by 0.3% in the fourth quarter. Russell Investments Group Ltd. now owns 125,625 shares of the company’s stock valued at $9,889,000 after buying an additional 410 shares in the last quarter. Integrated Wealth Concepts LLC boosted its stake in shares of Toro by 10.6% in the first quarter. Integrated Wealth Concepts LLC now owns 6,136 shares of the company’s stock valued at $446,000 after buying an additional 586 shares in the last quarter. Stonebridge Capital Advisors LLC boosted its stake in shares of Toro by 6.9% in the fourth quarter. Stonebridge Capital Advisors LLC now owns 9,299 shares of the company’s stock valued at $732,000 after buying an additional 600 shares in the last quarter. Danske Bank A S purchased a new position in shares of Toro in the third quarter valued at $46,000. Finally, Harvest Fund Management Co. Ltd purchased a new position in shares of Toro in the third quarter valued at $119,000. 87.95% of the stock is currently owned by hedge funds and other institutional investors.

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.