The Toro Company (TTC) Stock Surges After Q4 FY2025 Earnings Beat and FY2026 Guidance

The Toro Company (NYSE: TTC) is in focus on December 17, 2025, after the outdoor equipment and professional turf/landscape solutions maker reported fourth-quarter and full-year fiscal 2025 results (fiscal year ended October 31, 2025) alongside its fiscal 2026 outlook. The immediate takeaway for markets: results came in better than consensus expectations on key headline metrics, and management outlined a 2026 plan built around professional-market demand, productivity initiatives, and a newly completed acquisition in underground construction. ^[1]

TTC stock today: price action and what drove the move

As of 15:11:44 UTC on December 17, Toro shares traded at $79.43, up $6.78 versus the prior close (about +9.33%). The session’s reported range spanned roughly $72.50 to $79.43, with an opening print near $76.50.

The catalyst was primarily earnings-related. Toro’s quarterly report showed revenue modestly down year over year, but above expectations, while adjusted earnings per share edged ahead of estimates. In parallel, Toro issued FY2026 guidance that points to renewed growth in net sales—supported by professional end markets and the integration of Tornado Infrastructure Equipment—while acknowledging that tariff impacts remain part of the planning baseline. ^[2]

The headline news on December 17: Toro reports Q4 FY2025 results

Toro’s press release highlights a quarter where net sales were $1.066 billion (down about 1% year over year), while adjusted diluted EPS was $0.91 (vs. $0.95 a year ago). On a GAAP basis, Toro reported diluted EPS of $0.74 and net earnings of $73.0 million for the quarter. ^[3]

A Reuters/Refinitiv summary of the release emphasized that Toro’s Q4 sales and adjusted EPS beat consensus and reiterated management’s FY2026 adjusted EPS outlook range. ^[4]

Quick Q4 FY2025 snapshot (ended Oct. 31, 2025)

Net sales:$1,066.2M (vs. $1,076.0M prior-year quarter)
GAAP diluted EPS:$0.74 (vs. $0.87)
Adjusted diluted EPS:$0.91 (vs. $0.95)
GAAP net earnings:$73.0M (vs. $89.9M) ^[5]

Full-year FY2025: sales down slightly, adjusted EPS up, cash flow stands out

For the full fiscal year, Toro reported net sales of $4.510 billion (down ~2% versus FY2024), with management attributing much of the difference to prior-year divestitures of non-core assets. GAAP diluted EPS was $3.17 for FY2025, while adjusted diluted EPS was $4.20. ^[6]

One of the most market-relevant datapoints in Toro’s update: management reported record free cash flow of $578 million, primarily driven by improvements in working capital. Toro also said it returned $441 million to shareholders through dividends and share repurchases during the year. ^[7]

Toro also framed FY2025 as a year where it mitigated tariff headwinds and “maintained margins” at the full-year level, while continuing to invest in a multi-year productivity program. ^[8]

Segment performance: Professional strength vs. Residential pressure

Toro reports results primarily across two segments: Professional and Residential—and the divergence between those segments remains one of the biggest “explainers” for TTC stock.

Professional segment: growth and margin resilience

Management highlighted strength in areas including underground construction and golf, and said the Professional segment represents about 80% of Toro’s portfolio. ^[9]

Key Professional segment figures:

Q4 Professional net sales:$910.3M, slightly down year over year; Toro cited lower shipments in some categories off strong prior-year comps, partly offset by price realization and higher shipments of underground construction and snow/ice products. ^[10]
FY2025 Professional net sales:$3.62B, up 1.9% year over year. ^[11]
FY2025 Professional earnings:$702.5M, up 10.0%, with earnings margin of 19.4% (up from 18.0%). ^[12]

This mix matters to investors because professional end markets (golf courses, contractors, municipalities, infrastructure-related projects) can behave very differently from homeowner-driven demand—especially when consumer spending is uneven.

Residential segment: demand softness, but improving quarterly loss

Residential remains the segment where Toro is seeing more pressure, consistent with management’s emphasis on “conservative assumptions” for homeowner markets going into FY2026. ^[13]

Key Residential segment figures:

Q4 Residential net sales:$147.2M, down 5.1% year over year; Toro pointed to lower walk power mower shipments, partially offset by snow products and price realization. ^[14]
Q4 Residential segment result: a loss of $1.2M, improved from a $13.8M loss a year earlier (helped by cost savings and productivity improvements). ^[15]
FY2025 Residential net sales:$858.4M, down 14.0% year over year; Toro cited lower shipments broadly plus the impact of the prior-year Pope divestiture. ^[16]
FY2025 Residential earnings:$35.8M, down 54.3%, with earnings margin of 4.2% (vs. 7.9% last year). ^[17]

FY2026 guidance: sales growth returns, but EPS range trails some Street forecasts

Toro’s FY2026 outlook is now the central debate for TTC stock: how much of the post-earnings pop is justified by the forward setup?

Toro said it expects:

Net sales growth of 2% to 5%, and
Adjusted diluted EPS of $4.35 to $4.50 for fiscal 2026. ^[18]

Toro explicitly said this guidance is based on current visibility, inclusive of anticipated tariff impacts, and it reflects several operating assumptions, including:

continued strong demand and stable supply in underground construction, golf & grounds, and professional landscape contractor businesses;
conservative assumptions for homeowner markets;
progress toward normalizing field inventories of turf products and snow/ice solutions;
the contribution of the Tornado acquisition; and
weather patterns aligned with historical averages. ^[19]

A key nuance: Tornado acquisition contribution

Toro stated the Tornado Infrastructure Equipment acquisition is expected to add ~2% to total company net sales and be modestly accretive to adjusted EPS. ^[20]

That’s consistent with Toro’s earlier acquisition announcement, which described Tornado as a hydrovac excavation solutions manufacturer positioned for underground construction and infrastructure markets. ^[21]

How guidance compares with consensus expectations

Some market coverage emphasized that Toro’s earnings outlook sits below certain Street estimates. One report noted analysts, on average, forecast $4.63 per share for the year (a figure above Toro’s guided range). ^[22]

This “beat now, guide cautiously” pattern is common in industrial and equipment names—especially when management is trying to balance optimism in pro markets with uncertainty around tariffs, inventory normalization, and homeowner demand.

Wall Street sentiment: price targets cluster near $90, ratings lean positive

Analyst sentiment, based on Refinitiv/LSEG-reported data cited by Reuters content, indicates:

the current average recommendation is “buy”, with a split of buys and holds and no sells listed in that snapshot; and
a median 12‑month price target of $90, which (based on the prior day’s close referenced in the same summary) implied meaningful upside at the time. ^[23]

The same Reuters summary also noted that Toro recently traded around 15x next 12-month earnings, versus 18x roughly three months earlier—suggesting a valuation reset investors will be watching as FY2026 unfolds. ^[24]

Separately, MarketBeat’s aggregation described Toro’s consensus as Hold with a price target around the low $90s (data can vary by provider depending on which analysts are included and timing of updates). ^[25]

Other “current” Toro headlines investors are tying into the story

While earnings dominated December 17, Toro entered the report with several fresh corporate updates that shape the broader TTC stock narrative:

Dividend increase and new buyback authorization (December 9, 2025)

Toro announced a quarterly cash dividend of $0.39 per share (up from $0.38), payable January 12, 2026, to shareholders of record December 22, 2025. The board also authorized repurchases of up to an additional 6 million shares. ^[26]

For income-focused investors, the dividend increase and buyback capacity can help support the stock during periods when equipment demand is choppier.

Acquisition close: Tornado Infrastructure Equipment (December 8, 2025)

Toro completed the acquisition of Tornado for a $279 million (CAD) purchase price financed with debt, and said the deal is expected to be marginally accretive to adjusted EPS in the first year, becoming more accretive over time. Toro also cited expected annual run-rate cost synergies of $3 million (USD) over three years, plus potential revenue synergies and working capital improvements. ^[27]

This matters because Toro’s FY2026 guidance explicitly bakes in an estimated sales contribution from Tornado, making integration execution a near-term catalyst (or risk) for TTC stock.

SEC filing confirms timing and materials (December 17, 2025)

Toro also furnished its earnings release via a Form 8‑K dated December 17, 2025, referencing the announcement of results for the three- and twelve-month periods ended October 31, 2025. ^[28]

What investors will watch next for TTC stock

With the initial earnings reaction in the books, the next phase for Toro shares will likely be driven by follow-through on a handful of measurable themes:

Professional demand durability
Toro’s outlook leans on continued strength in underground construction, golf & grounds, and professional landscape contractors. Any shift in contractor backlogs or municipal budgets could change the slope quickly. ^[29]
Residential recovery (or stabilization)
Toro’s own guidance framework uses conservative assumptions for homeowner markets. Watch for evidence that dealer/channel inventories and consumer replacement cycles are normalizing rather than deteriorating. ^[30]
Tariffs and mitigation execution
Toro says FY2026 guidance includes anticipated tariff impacts and emphasizes mitigation efforts. If tariffs intensify beyond what’s embedded, or if mitigation costs rise, margins could be pressured. ^[31]
Productivity and cost savings (AMP initiative)
Toro increased its AMP run-rate savings target to $125 million by fiscal 2027 (from at least $100 million originally). Investors will likely look for quarterly proof points that savings translate into sustainable margin expansion rather than one-off wins. ^[32]
Tornado integration and synergy realization
With management pointing to both sales contribution and accretion, execution on synergies and operational integration will be a recurring question in 2026. ^[33]

Bottom line: why December 17 matters for Toro stock

Toro’s December 17 update delivered a classic “earnings beat + updated roadmap” package:

Q4 revenue and adjusted EPS exceeded expectations, sparking a sharp positive move in TTC shares on the day. ^[34]
The company is leaning into Professional segment strength (especially underground construction and golf/grounds), while remaining cautious on homeowner-driven demand. ^[35]
FY2026 guidance calls for 2%–5% sales growth and $4.35–$4.50 adjusted EPS, explicitly incorporating tariff impacts and adding the Tornado acquisition contribution. ^[36]
Investors now have clearer “scorecards” to track: free cash flow generation, margin trajectory under AMP, residential stabilization, and Tornado integration outcomes. ^[37]

References

The Toro Company (TTC) Stock Surges After Q4 FY2025 Earnings Beat and FY2026 Guidance — What Investors Are Watching