The Toro Company posted adjusted earnings per share of $1.47 for the first quarter of 2026, surpassing expectations and driven by 7% organic revenue growth. The results reflect robust demand in both commercial and residential segments, supporting broader trends in the consumer discretionary and industrial sectors.
- Adjusted EPS of $1.47 for Q1 2026, surpassing estimates by $0.08
- Organic revenue growth of 7% year-over-year to $718 million
- Commercial segment revenue up 9%, residential up 5%
- Gross margin improved to 48.3% from 47.6% in Q1 2025
- Share repurchase authorization of $25 million and 6% dividend increase
- Full-year 2026 guidance reaffirmed: 5%-7% organic revenue growth, $5.70–$5.90 EPS
The Toro Company delivered a solid performance in the first quarter of 2026, reporting adjusted earnings per share of $1.47, exceeding consensus estimates by $0.08. Revenue reached $718 million, marking a 7% increase on an organic basis and 4% growth when including currency effects. This growth was fueled by strong demand across residential landscaping and commercial turf care markets, particularly in North America and Western Europe. The company’s commercial segment saw a 9% year-over-year revenue rise, benefiting from increased investments in municipal and institutional maintenance projects. Residential sales grew 5% amid sustained consumer interest in home improvement and outdoor living spaces. Gross margin expanded to 48.3% from 47.6% in the prior-year quarter, reflecting improved manufacturing efficiencies and favorable input cost management. Toro also announced a $25 million share repurchase authorization and increased its quarterly dividend by 6%, signaling confidence in long-term cash generation. The stock, trading under the ticker TORO, responded positively in after-hours trading, with shares rising 2.4%. Competitors in the industrial and outdoor equipment space, including Lowe’s (LOW) and Harley-Davidson (HOG), saw modest upticks in trading volume, suggesting broad sector interest. Despite inflationary pressures and supply chain adjustments, Toro maintained its full-year 2026 guidance, projecting organic revenue growth of 5% to 7% and adjusted EPS of $5.70 to $5.90. The company highlighted ongoing investments in product innovation and digital tools for dealerships as key drivers of future growth.