The market was looking for roughly $1.31-$1.32 of adjusted EPS and about $1.20 billion of revenue; Toro cleared both bars modestly. Published estimates centered around adjusted EPS of approximately $1.31-$1.32 and revenue near $1.20 billion.
| Metric | F26 Q3 | F25 Q3 | Change | Market comparison |
|---|---|---|---|---|
| Net sales | $1,225.8M | $1,131.3M | +8.4% | Above ~$1.20B consensus |
| Adjusted diluted EPS | $1.33 | $1.24 | +7.3% | Above ~$1.31-$1.32 consensus |
| Adjusted operating margin | 13.9% | 13.6% | +30 bps | — |
| Free cash flow, nine months | $425.1M | $291.9M | +45.0% | — |
The biggest upside is the outlook, not the quarterly EPS beat. Fiscal 2026 adjusted EPS guidance moved to $4.60-$4.65 from $4.50-$4.62, while sales-growth guidance moved to 6.3%-6.6% from 4.0%-6.5%. That is a genuine upward reset, although the sales-range improvement is concentrated at the low end and the EPS midpoint rises only about 1.4%.
Growth was broadening, with Residential recovering sharply while Professional remained the engine. Professional sales rose 8.8%, while Residential sales increased 8.6% and Residential segment earnings more than tripled to $12.4 million.
The quality of the beat is good but not clean because Professional profitability weakened. Professional segment margin fell to 20.9% from 21.3% as higher material and manufacturing costs and mix offset pricing and productivity gains. Adjusted company operating margin still expanded to 13.9% from 13.6%, helped by productivity actions and Residential improvement.
Net read: a narrow beat upgraded by raised guidance, rather than a blowout quarter. Revenue and adjusted EPS came in slightly ahead of expectations, cash generation improved materially, and management raised the year-end framework. The offset is that the core Professional segment still faces cost and mix pressure, keeping this a modestly positive earnings surprise rather than a decisive acceleration.
Read the original 8-K on SEC EDGAR ↗