The Toro Co. reports fiscal second-quarter results Thursday morning before the market opens, with investors eager to see whether the outdoor equipment maker can sustain momentum from a strong start to the year as it enters the critical spring selling season.
Analysts expect the Bloomington, Minnesota-based company to post earnings of $1.50 per share on revenue of $1.39 billion, representing year-over-year increases of 5.6% and 5.3%, respectively. The forecasts mark a substantial sequential improvement from the first quarter, when Toro earned $0.74 per share on revenue of $1.04 billion, reflecting the seasonal nature of the lawn and garden equipment business.
Analysts rate the stock a Buy with a mean price target of $110.50, implying roughly 23% upside from the current price of $89.87. However, EPS estimates and revenue estimates have remained flat over the past 60 days, suggesting analysts are standing pat on their projections heading into the report.
The company operates in an industry experiencing steady tailwinds. Toro ranks among the top five global players in lawn and garden equipment, alongside Deere, Husqvarna, and Kubota. The sector is seeing sustained demand driven by smart irrigation systems and low-emission equipment, as sustainability becomes a core trend.
What Investors Are Watching
The professional segment will be under the microscope. This business—which serves commercial contractors, golf courses, and municipalities—represented nearly 80% of fiscal 2024 sales and has delivered strong margins. Investors will look for commentary on golf course equipment demand and the underground construction business, which has been a bright spot.
Integration of the Tornado Infrastructure Equipment acquisition, completed in December 2025, will also draw scrutiny. The Calgary-based manufacturer specializes in hydrovac equipment for underground construction, and this quarter should provide the first full period of contribution to results.
Residential demand during the peak spring season remains a key question mark. April and May capture critical homeowner purchases of mowers and outdoor equipment, and any signs of consumer weakness could temper optimism about the full-year outlook.
The company beat expectations in the first quarter, with revenue of $1.04 billion up 4.2% from the prior year, and subsequently raised its fiscal 2026 guidance for both sales and earnings. That confidence will be tested against actual spring demand, which drives a disproportionate share of annual revenue.
Toro shares have climbed to $89.87 from a 52-week low of $67.04, though they remain below the $105.19 high reached earlier this year. Some analysts have cited valuation concerns after the stock’s strong rally, making this quarter’s execution all the more important.
The results will signal whether Toro’s momentum can carry through its most important selling period and validate management’s optimistic full-year projections.
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