Does Toro’s (TTC) Bigger Payout and Buyback Signal Enduring Strength or Slower Growth Ahead?

• The Toro Company recently reported past fourth-quarter and full-year 2025 results showing slightly lower sales and earnings, while also authorizing a new share repurchase program for up to 6,000,000 shares and raising its regular quarterly dividend to US$0.39 per share.
• Alongside this, Toro issued fiscal 2026 guidance calling for 2% to 5% net sales growth and outlined continued AMP cost savings and Professional segment strength, signaling a focus on operational efficiency and disciplined capital returns.
• With Toro pairing softer earnings guidance with a higher dividend and fresh buyback authorization, we’ll now assess how this shapes its investment narrative.

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Toro Investment Narrative Recap

To own Toro, you need to be comfortable with a company leaning on its Professional segment, productivity gains and disciplined capital returns while working through softer earnings and pressured margins. The latest results confirm that earnings are under pressure, but management’s fiscal 2026 net sales growth outlook and continued AMP cost savings keep the main near term catalyst in place, while the biggest risk remains demand and margin pressure if residential weakness and weather challenges persist; this update does not materially change that equation.

Among the recent announcements, the new authorization to repurchase up to 6,000,000 shares of common stock stands out alongside the higher US$0.39 quarterly dividend. Together, they show Toro committing more cash to shareholders at a time when earnings have stepped down and guidance is relatively modest, which sharpens the contrast between capital returns as a potential support for the share price and the underlying risk that profit growth could remain constrained if key end markets stay soft.

Yet investors should be aware that continued residential softness and weather driven volatility could still...

Read the full narrative on Toro (it's free!)

Toro's narrative projects $4.8 billion revenue and $526.8 million earnings by 2028. This requires 2.3% yearly revenue growth and about a $193.8 million earnings increase from $333.0 million today.

Uncover how Toro's forecasts yield a $92.60 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for Toro cluster between US$81.42 and US$92.60, underscoring how differently individual investors view upside from here. Set against that, Toro’s recent earnings decline and sensitivity to residential demand and weather remind you that sentiment can shift quickly, so it is worth comparing multiple viewpoints before deciding how these risks might affect future performance.

Explore 3 other fair value estimates on Toro - why the stock might be worth as much as 18% more than the current price!

Build Your Own Toro Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Toro research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Toro research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Toro's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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