Toronto Dominion Bank (NYSE:TD) Posts Earnings Results, Beats Expectations By $0.24 EPS

Toronto Dominion Bank (NYSE:TD) (TSE:TD) announced its quarterly earnings results on Thursday. The bank reported $1.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.74 by $0.24, Zacks reports. Toronto Dominion Bank had a net margin of 14.41% and a return on equity of 14.85%. The firm had revenue of $12.07 billion for the quarter, compared to the consensus estimate of $10.70 billion. During the same quarter last year, the firm posted $2.20 EPS. The business’s quarterly revenue was up 6.9% compared to the same quarter last year.

Here are the key takeaways from Toronto Dominion Bank’s conference call:

• Positive Sentiment: TD reported record third-quarter adjusted earnings of CAD 4.7 billion and EPS of CAD 2.77, with revenue up 8% year over year, ROE rising to 16%, and positive operating leverage for the fifth consecutive quarter.
• Positive Sentiment: Credit performance improved, with total PCLs falling to 37 basis points and impaired PCLs declining quarter over quarter; management now expects fiscal 2026 PCLs near the lower end of its prior 40–50 basis-point range.
• Positive Sentiment: Growth momentum strengthened across the franchise, including sequential U.S. loan growth, strong U.S. card and mid-market lending, record Canadian personal and commercial banking results, and record Wealth Management and Wholesale Banking revenue and earnings.
• Positive Sentiment: Management said TD could return more than CAD 13 billion through share buybacks in fiscal 2027 while targeting a 13% CET1 ratio, although capital will first support organic growth and potential selective acquisitions.
• Negative Sentiment: The U.S. AML consent order remains in place and is still the bank’s top priority, with approximately USD 550 million of U.S. AML remediation expenses expected in fiscal 2026; Canada-U.S. trade tensions also add macroeconomic uncertainty despite roughly CAD 500 million of reserves for policy and trade risks.

Toronto Dominion Bank Stock Up 0.2%

Shares of TD stock opened at $121.33 on Friday. The company has a market capitalization of $199.57 billion, a price-to-earnings ratio of 18.03, a PEG ratio of 1.22 and a beta of 0.72. Toronto Dominion Bank has a one year low of $72.78 and a one year high of $125.46. The company’s fifty day moving average price is $120.58 and its 200-day moving average price is $109.23. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.04 and a quick ratio of 1.04.

Toronto Dominion Bank Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Saturday, October 31st. Stockholders of record on Friday, October 9th will be paid a $1.12 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $4.48 dividend on an annualized basis and a dividend yield of 3.7%. Toronto Dominion Bank’s dividend payout ratio is 49.14%.

Toronto Dominion Bank News Summary

Here are the key news stories impacting Toronto Dominion Bank this week:

• Positive Sentiment: Quarterly earnings beat expectations. TD reported approximately C$4.62 billion in third-quarter profit, with adjusted EPS of C$1.98 versus the C$1.74 analyst consensus. Revenue of C$12.07 billion also exceeded the C$10.70 billion estimate and rose 6.9% year over year. TD Bank earnings report
• Positive Sentiment: Capital-markets strength drove the outperformance. Strong trading and deal activity boosted wholesale banking results, while Canadian personal and commercial banking also delivered gains. Lower provisions for credit losses further supported profitability. Canada banks earnings report
• Positive Sentiment: Capital returns and growth plans strengthened the investment case. TD declared a quarterly dividend of C$1.12 per common share, payable October 31, and RBC said the bank is positioned for sustained earnings growth and significant shareholder returns. TD also plans to open roughly 100 additional U.S. branches. TD positioned for earnings growth
• Positive Sentiment: Efficiency initiatives are beginning to produce measurable benefits. TD said its artificial-intelligence initiatives generated approximately C$195 million in value during the first three quarters of fiscal 2026, ahead of schedule. TD AI value report
• Neutral Sentiment: Analysts maintain a consensus “Moderate Buy” recommendation, while TD executives expressed measured confidence in Canada’s economic outlook. TD analyst recommendation
• Negative Sentiment: Despite the earnings beat, reported EPS remained below the year-earlier level in some comparisons, highlighting that the results benefited heavily from capital-markets performance and favorable credit conditions.

Analyst Upgrades and Downgrades

TD has been the topic of a number of research analyst reports. Royal Bank Of Canada increased their price objective on shares of Toronto Dominion Bank from $138.00 to $156.00 and gave the company an “outperform” rating in a research report on Monday, June 1st. Keefe, Bruyette & Woods started coverage on shares of Toronto Dominion Bank in a research report on Friday, August 21st. They issued a “market perform” rating for the company. Wall Street Zen upgraded shares of Toronto Dominion Bank from a “sell” rating to a “hold” rating in a research note on Saturday, August 22nd. Scotiabank raised Toronto Dominion Bank from a “sector perform” rating to a “sector outperform” rating in a report on Monday, May 4th. Finally, Raymond James Financial upgraded Toronto Dominion Bank from a “market perform” rating to an “outperform” rating in a research note on Tuesday, May 12th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $156.00.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Smartleaf Asset Management LLC raised its holdings in Toronto Dominion Bank by 660.9% during the second quarter. Smartleaf Asset Management LLC now owns 525 shares of the bank’s stock valued at $38,000 after acquiring an additional 456 shares during the period. McMillan Office Inc. purchased a new position in shares of Toronto Dominion Bank in the fourth quarter valued at about $50,000. Swiss RE Ltd. bought a new position in shares of Toronto Dominion Bank in the fourth quarter worth about $51,000. Sunbelt Securities Inc. boosted its stake in shares of Toronto Dominion Bank by 232.6% in the third quarter. Sunbelt Securities Inc. now owns 715 shares of the bank’s stock worth $57,000 after acquiring an additional 500 shares during the period. Finally, Strive Financial Group LLC bought a new position in shares of Toronto Dominion Bank in the fourth quarter worth about $62,000. Institutional investors own 52.37% of the company’s stock.

Toronto Dominion Bank Company Profile

Toronto-Dominion Bank (TD) is a Canadian multinational banking and financial services company headquartered in Toronto, Ontario. Formed through the 1955 merger of the Bank of Toronto (founded 1855) and the Dominion Bank (founded 1869), TD is one of Canada’s largest banks and offers a broad range of financial products and services to individual, small business, commercial and institutional clients.

TD’s core businesses include Canadian and U.S. personal and commercial banking, wealth management, wholesale banking and insurance.