Toro (NYSE:TTC – Get Free Report) posted its quarterly earnings results on Thursday. The company reported $1.60 earnings per share for the quarter, topping analysts’ consensus estimates of $1.50 by $0.10, FiscalAI reports. The company had revenue of $1.42 billion for the quarter, compared to the consensus estimate of $1.39 billion. Toro had a net margin of 7.28% and a return on equity of 29.60%. Toro’s revenue was up 8.1% on a year-over-year basis. During the same quarter last year, the firm 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 Stock Performance
Shares of TTC stock opened at $88.91 on Friday. The company’s fifty day simple moving average is $93.11 and its 200-day simple moving average is $88.95. Toro has a 52 week low of $67.04 and a 52 week high of $105.18. The company has a current ratio of 1.69, a quick ratio of 0.73 and a debt-to-equity ratio of 0.75. The company has a market cap of $8.62 billion, a PE ratio of 26.62 and a beta of 0.70.
Toro Dividend Announcement
Analyst Upgrades and Downgrades
A number of research firms have weighed in on TTC. Robert W. Baird increased their price target on shares of Toro from $100.00 to $105.00 and gave the stock a “neutral” rating in a research note on Friday, March 6th. Wall Street Zen raised shares of Toro from a “buy” rating to a “strong-buy” rating in a research note on Sunday, March 15th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Toro in a research note on Friday, April 17th. DA Davidson increased their price target on shares of Toro from $97.00 to $117.00 and gave the stock a “buy” rating in a research note on Monday, March 9th. Finally, Raymond James Financial downgraded shares of Toro from an “outperform” rating to a “market perform” rating in a research note on Wednesday, February 18th. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $100.40.
Check Out Our Latest Stock Analysis on TTC
Insiders Place Their Bets
In other news, CEO Richard M. Olson sold 119,400 shares of the firm’s stock in a transaction 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 transaction, the chief executive officer owned 38,186 shares of the company’s stock, valued at approximately $3,824,327.90. This trade represents a 75.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director James Calvin O’rourke sold 4,951 shares of the firm’s stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $99.40, for a total transaction 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 position. The SEC filing for this sale provides additional information. Company insiders own 1.88% of the company’s stock.
Hedge Funds Weigh In On Toro
Hedge funds have recently made changes to their positions in the business. Van ECK Associates Corp raised its stake in shares of Toro by 4.4% in the 4th quarter. Van ECK Associates Corp now owns 258,444 shares of the company’s stock valued at $20,345,000 after acquiring an additional 10,835 shares during the period. Russell Investments Group Ltd. increased its stake in Toro by 0.3% during the 4th quarter. Russell Investments Group Ltd. now owns 125,625 shares of the company’s stock worth $9,889,000 after buying an additional 410 shares during the period. Captrust Financial Advisors increased its stake in Toro by 16.6% during the 3rd quarter. Captrust Financial Advisors now owns 52,879 shares of the company’s stock worth $4,029,000 after buying an additional 7,511 shares during the period. Empowered Funds LLC increased its stake in Toro by 9.8% during the 1st quarter. Empowered Funds LLC now owns 38,840 shares of the company’s stock worth $2,826,000 after buying an additional 3,464 shares during the period. Finally, Horizon Investments LLC increased its stake in Toro by 88.4% during the 3rd quarter. Horizon Investments LLC now owns 29,392 shares of the company’s stock worth $2,229,000 after buying an additional 13,789 shares during the period. Hedge funds and other institutional investors own 87.95% of the company’s stock.
Key Toro News
Here are the key news stories impacting Toro this week:
- Positive Sentiment: The company beat quarterly 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 earnings report and conference call transcript
- Positive Sentiment: Toro raised its FY 2026 outlook, guiding EPS to $4.50-$4.62 and revenue to $4.8 billion-$5.1 billion, signaling management confidence after a margin breakthrough. Toro lifts outlook after margin breakthrough
- Positive Sentiment: Coverage highlighted that Toro is benefiting from demand tied to the AI buildout boom, which may be supporting investor optimism around future sales growth. Toro taps into the AI buildout boom, raises outlook
- Neutral Sentiment: Analysts had broadly expected a solid quarter ahead of the release, with estimates centered around $1.51 per share on $1.39 billion in revenue, so some of the good news may already have been priced in. Toro gears up for Q2 print
- Neutral Sentiment: The company also announced a quarterly dividend of $0.39 per share, which supports the income profile but is not the main driver of the stock move. Toro dividend announcement
Toro Company Profile
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.
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