Toll Brothers, Inc. (NYSE:TOL) shares fell more than 2% intra-day on Tuesday after the luxury homebuilder posted fourth-quarter earnings that came in below Wall Street expectations, even as revenue exceeded forecasts.

The company reported earnings of $4.58 per share for the quarter ended October 31, 2025, missing the consensus estimate of $4.89. Revenue climbed to $3.42 billion, above the projected $3.31 billion and up 4.7% from $3.26 billion a year earlier. Toll Brothers delivered 3,443 homes in the quarter, slightly ahead of the 3,431 units completed in the prior-year period.

Adjusted home sales gross margin declined to 27.1% from 27.9% a year earlier, while SG&A expenses held steady at 8.3% of home sales revenue. Net signed contracts totaled $2.53 billion for 2,598 homes, compared with $2.66 billion for 2,658 homes in last year's fourth quarter, reflecting ongoing market challenges.

For fiscal 2026, the company forecast home deliveries of 10,300 to 10,700 units, down from 11,292 in fiscal 2025. First-quarter deliveries were expected to range between 1,800 and 1,900 units.