Toronto-Dominion Bank (TD) Stock Update & Financial Performance Review - Q2 2025

May 23, 2025 10:00 AM - Andrew Wynn

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Toronto-Dominion Bank (NYSE:TD) Stock Update and Financial Performance Review

Toronto-Dominion Bank (NYSE:TD), a leading Canadian financial institution, saw its stock rise by approximately 3.2% on Thursday, May 22, 2025, outperforming the S&P 500, which remained nearly flat. This uptick followed the release of its fiscal second-quarter (Q2) 2025 earnings report, which showcased strong revenue growth and strategic cost-saving initiatives, despite challenges in adjusted net income. TD competes with major Canadian banks like Royal Bank of Canada and Bank of Montreal.

On May 23, 2025, National Bank maintained its "Sector Perform" rating on TD with a "hold" recommendation, raising its price target from C$80 to C$98, reflecting confidence in the bank's long-term outlook. The stock closed at $66.95 USD. For Q2 2025 (ended April 30, 2025), TD reported revenue of C$15.1 billion ($10.9 billion USD), a significant increase from C$13.8 billion ($9.9 billion USD) in Q2 2024, driven by growth in net loans (up 1% year-over-year) and total assets (up ~5%).

Reported net income soared to C$11.1 billion, a 334% year-over-year increase, primarily due to a one-time after-tax gain of C$8.6 billion from the sale of TD's remaining equity stake in The Charles Schwab Corporation. However, adjusted net income, which excludes one-time items, was C$3.6 billion ($2.6 billion USD), down slightly from C$3.8 billion ($2.7 billion USD) in Q2 2024. Adjusted earnings per share (EPS) were C$1.97 ($1.42 USD), down from C$2.04 in Q2 2024 but surpassing consensus analyst estimates of C$1.76.

TD's ongoing restructuring plan, including a 2% workforce reduction and real estate optimization, is projected to save C$600 million pre-tax annually, enhancing operational efficiency. These measures, combined with strong revenue growth, bolstered investor confidence, contributing to the stock's outperformance.

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