At a glance
Toll Brothers Inc is worth $12.89B, about 10 times its fiscal 2025 earnings. Revenue grew 1.1% to $10.97B in fiscal 2025, with 12.3% kept as profit; over 5 years it has grown 9.2% a year. It pays a 0.74% dividend yield, raised every year for at least 5 years, and returned $3.21B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +1.5% over the past year with dividends reinvested and +19.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 71.3% in the 2020 crash (S&P 500: 33.7%) and 42.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 6 months and 8 months after the lows.
The business in plain English
Toll Brothers builds and sells luxury homes in the United States. Customers include affluent first-time buyers, move-up families, empty-nesters, second-home buyers and active adults aged 55 and older. It builds detached and attached homes, master-planned communities and, through its City Living joint ventures, high-rise urban condominiums. At October 31, 2025, it operated in 24 states and the District of Columbia and was offering homes from 446 communities.
Nearly all revenue comes from home sales, with extra charges for options such as finished basements, home offices, cabinets and appliances. It also runs its own mortgage, title and insurance subsidiaries. In fiscal 2025 it delivered 11,292 homes and reported revenue of $10.97 billion. About 54% of those deliveries were spec homes, started before a buyer signed a contract, up from 49% in fiscal 2024. Backlog, meaning homes under contract but not yet delivered, was $5.49 billion (4,647 homes) at October 31, 2025.
Fiscal 2025 revenue came from five regions: Mountain (27.1%), South (24.8%), Pacific (19.4%), North (15.3%) and Mid-Atlantic (13.4%). Toll also developed rental apartments and student housing through joint ventures. On September 18, 2025, it announced an exit from that business, starting with a sale of about half the portfolio and its operating platform to Kennedy Wilson for about $380 million; a significant portion closed in December 2025.
Price history
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TOL +1.5% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By geography
| Mountain | $2.98B | 27.1% |
| South | $2.72B | 24.8% |
| Pacific | $2.12B | 19.4% |
| North | $1.67B | 15.3% |
| Mid-Atlantic | $1.47B | 13.4% |
Latest results
- In Q3 FY2026 (ended Jul 31, 2026), revenue was $2.66B, down 9.7% from a year earlier, and net income was $280.1M (-24.2%).
- For fiscal 2025, revenue was $10.97B (+1.1% year over year; +9.2% a year from FY2020 to FY2025) with a 12.3% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +9.2% good |
|---|---|
| Operating margin | 15.7% good |
| Free cash flow margin | 9.4% watch |
| Return on equity (FY2025) | 16.3% good |
| Return on assets (FY2025) | 9.3% good |
| Cash and investments | $1.06B (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $7.08B | $446.6M | $898.6M |
| FY2021 | $8.79B | $833.6M | $1.24B |
| FY2022 | $10.28B | $1.29B | $915.1M |
| FY2023 | $9.99B | $1.37B | $1.19B |
| FY2024 | $10.85B | $1.57B | $936.5M |
| FY2025 | $10.97B | $1.35B | $1.03B |
Valuation snapshot
| Market value | $12.89B |
|---|---|
| P/E ratio | 10.4 |
| Dividend yield | 0.74% |
Rank among 1514 US companies
Market value at each year end
Toll Brothers’s market value went from $5.03B at the end of 2016 to $12.89B on Oct 28, 2026, about 2.6 times as much; since the end of 2025 it is up 0%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $12.89B | +0.3% |
| 2025 | $12.85B | +2.0% |
| 2024 | $12.60B | +17.7% |
| 2023 | $10.70B | +93.6% |
| 2022 | $5.53B | -36.6% |
| 2021 | $8.71B | +60.6% |
| 2020 | $5.43B | -1.0% |
| 2019 | $5.48B | +14.4% |
| 2018 | $4.79B | -34.9% |
| 2017 | $7.36B | +46.1% |
| 2016 | $5.03B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| TOL price data to Oct 28, 2026 | +4.2% | +1.5% | +27.7% | +19.5% | +18.9% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +4.2% |
| 2025 | +8.3% |
| 2024 | +23.5% |
| 2023 | +108.6% |
| 2022 | -30.0% |
| 2021 | +68.4% |
| 2020 | +11.5% |
| 2019 | +21.4% |
| 2018 | -30.7% |
| 2017 | +55.9% |
| 2016 | -6.9% |
| 2015 | -2.8% |
| 2014 | -7.4% |
| 2013 | +14.4% |
| 2012 | +58.3% |
| 2011 | +7.5% |
| 2010 | +1.0% |
| 2009 | -12.2% |
| 2008 | +6.8% |
| 2007 | -37.8% |
| 2006 | -7.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 37.2% over that stretch · deepest drop along the way 46.9%, back to its old high 38.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 70.9% over that stretch · deepest drop along the way 71.3%, back to its old high 6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 38% over that stretch · deepest drop along the way 42.1%, back to its old high 8.1 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 9 sales ($26.1M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Jun 18, 2026 | Douglas C. Jr. Yearley Executive Chairman, Director | sell | $12.2M |
| Feb 24, 2026 | Douglas C. Jr. Yearley Chief Executive Officer, Director | sell | $6.9M |
| Feb 27, 2026 | Douglas C. Jr. Yearley Chief Executive Officer, Director | sell | $4.3M |
| Jun 18, 2026 | Robert Parahus President & COO | sell | $1.1M |
| Jan 15, 2026 | Paul E Shapiro Director | sell | $582K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 10.1% | Aug 31, 2026 |
| Greenhaven Associates, Inc. | 5.9% | Dec 31, 2025 |
| Capital World Investors | 5.4% | Sep 30, 2025 |
| Vanguard Capital Management | 5.25% | Mar 31, 2026 |
ETFs with the most weight in TOL
| ITB iShares U.S. Home Construction ETF | 3.89% |
| MDPL Monarch Dividend Plus ETF | 3.11% |
| PJFV PGIM Jennison Focused Value ETF | 2.59% |
| PRAY FIS Christian Stock Fund | 2.18% |
| SMRI Bushido Capital US Equity ETF | 1.92% |
| VFLO VictoryShares Free Cash Flow ETF | 1.77% |
| XMHQ Invesco S&P MidCap Quality ETF | 1.64% |
| DSMC Distillate Small/Mid Cash Flow ETF | 1.47% |
What could go wrong
- Heavy reliance on California. Toll says a significant portion of its revenue and operating income comes from California. That leaves its results exposed to a slowdown in one state's housing market.
- Spec homes can force faster price cuts. Spec homes, started before a buyer signs a contract, made up 54% of fiscal 2025 deliveries. If the economy weakens, Toll may need to cut prices quickly to avoid carrying many finished, unsold homes.
- Large land holdings could lose value. Toll owned or controlled about 76,100 home sites at October 31, 2025. If demand falls, it may not recover land costs, could forfeit option deposits and may take write-downs, as in the 2006–2011 downturn.
- High-rise and joint-venture projects add risk. City Living towers are built with joint-venture partners and take longer than houses, leaving them exposed to delays and market shifts, with deliveries arriving in bunches. Partners' actions can also hurt Toll.
- Higher rates and inflation hurt affordability. Inflation raises land, labor and material costs, and higher mortgage rates make homes harder to afford. Toll says high inflation and rising rates were primary drivers of weaker demand for its homes.
- Housing downturns hit homebuilders hard. Demand depends on jobs, consumer confidence and financing. In a downturn, Toll warns its gross margin (profit left after building costs) would likely fall sharply, with possible inventory write-downs and operating losses.
Recent events
- Quarterly results released
- Quarterly results released
- Executive or board change; Other company announcement
- Executive or board change
- Shareholder vote results
- Quarterly results released
- Major agreement signed
- Executive or board change; Other company announcement
- Executive or board change
- Quarterly results released
For income and retirement investors
Toll Brothers pays a small, growing dividend. Regular dividends per share rose from $0.44 in fiscal 2020 to $0.98 in fiscal 2025, about 17.4% a year, with five straight annual increases. The fiscal 2025 payout used just 7.2% of earnings and 9.5% of free cash flow (cash left after capital spending). With a yield of 0.74% as of October 28, 2026, the stock offers little income. Toll returns far more cash by repurchasing its own shares, spending $2.76 billion in fiscal 2021–2025 versus $447 million on dividends. Its share count fell 24.3% from August 2021 to August 2026.
In past downturns, the shares fell about 47% in the 2008 financial crisis and took about 38 months to recover. They lost about 71% in the 2020 COVID crash, recovering in about six months, and about 42% in the 2022 bear market. As a single company tied to the housing cycle, Toll Brothers carries more risk than a diversified fund.
Questions investors ask
How does Toll Brothers make money?
Mainly by building and selling luxury homes. In fiscal 2025, which ended October 31, 2025, Toll delivered 11,292 homes and reported revenue of $10.97 billion and net income of $1.35 billion. Buyers pay extra for structural and finishing options, and Toll runs its own mortgage, title and insurance subsidiaries. Its biggest regions by revenue were Mountain (27.1%) and South (24.8%). About 54% of deliveries were spec homes, started before a buyer signed a contract.
Does Toll Brothers pay a dividend?
Yes, but it is small. Toll paid regular dividends of $0.98 per share in fiscal 2025, up from $0.44 in fiscal 2020, with increases in five straight years. The yield was 0.74% as of October 28, 2026. Dividends took only 7.2% of fiscal 2025 earnings. Toll puts much more into buybacks, spending $2.76 billion repurchasing its own shares in fiscal 2021–2025, compared with $447 million in dividends. With so low a yield, most of a shareholder's return depends on the share price.
What is Toll Brothers' P/E ratio?
About 10.4 as of October 28, 2026, based on fiscal 2025 earnings of $13.49 per share. The P/E, or price-to-earnings ratio, is the share price divided by a year's profit per share. A low figure can reflect worries that profits will shrink, and Toll's earnings have declined: net income fell 14.3% in fiscal 2025, and in the quarter ended July 31, 2026, revenue fell 9.7% and net income 24.2% from a year earlier.
How did Toll Brothers stock perform in past market crashes?
It fell hard in each one. The shares dropped about 47% in the 2008 financial crisis (from September 2008 to March 2009) and needed about 38 months to recover. They lost about 71% in the 2020 COVID crash but recovered in about six months, and fell about 42% in the 2022 bear market, recovering in about eight months. The deepest drop in roughly 21 years of price history to October 28, 2026, was about 76%.
Is Toll Brothers getting out of the apartment business?
Yes. On September 18, 2025, Toll announced plans to exit multifamily development, starting with the sale of its interests in about half its portfolio, plus its operating platform, to Kennedy Wilson for about $380 million. A significant portion closed in December 2025. Kennedy Wilson agreed to manage the rental interests Toll kept, which Toll expects to exit over time. At October 31, 2025, before the December closing, Toll or its joint ventures controlled 73 rental or student housing parcels with about 22,300 planned or completed units.