Toronto Dominion Bank (NYSE:TD) Releases Earnings Results, Beats Expectations By $0.11 EPS

Toronto Dominion Bank (NYSE:TD) (TSE:TD) posted its earnings results on Thursday. The bank reported $1.74 earnings per share for the quarter, topping analysts’ consensus estimates of $1.63 by $0.11, Zacks reports. The company had revenue of $11.80 billion during the quarter, compared to analyst estimates of $11.04 billion. Toronto Dominion Bank had a net margin of 13.20% and a return on equity of 14.80%. Toronto Dominion Bank’s revenue for the quarter was down 31.1% on a year-over-year basis. During the same period in the prior year, the business posted $1.97 earnings per share.

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

• TD reported a strong second quarter with EPS up 21% year over year and ROE of 14.4%, while management said the bank is tracking ahead of its fiscal 2026 targets for EPS growth and ROE if macro conditions hold.
• Core businesses showed broad momentum, including record revenue, pre-tax pre-provision earnings, and earnings in Canadian Personal and Commercial Banking, plus record results in Wealth, Insurance, and Wholesale Banking.
• TD said its AML remediation program is making progress, with look-back work advancing and costs expected to moderate in the second half of the year, broadly in line with its prior CAD 500 million full-year guidance.
• Management remained upbeat on strategic growth opportunities, highlighting improving U.S. banking loan growth, strong card acquisition, and continued strength in wealth referrals and direct investing. Executives also said the bank is ahead of pace on structural cost reduction and AI value creation.
• Credit remained solid overall, with PCLs stable at 43 bps and impaired PCLs declining quarter over quarter, though the bank added some reserves due to a weaker macro outlook and noted pressure could build from tariffs, the Middle East conflict, and Canadian consumer stress.

Toronto Dominion Bank Price Performance

Shares of NYSE TD opened at $113.74 on Friday. Toronto Dominion Bank has a fifty-two week low of $68.08 and a fifty-two week high of $114.26. The company has a 50 day simple moving average of $103.24 and a two-hundred day simple moving average of $96.05. The company has a market capitalization of $188.38 billion, a price-to-earnings ratio of 17.74, a P/E/G ratio of 1.27 and a beta of 0.71. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.05 and a current ratio of 1.05.

Toronto Dominion Bank Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, July 10th will be paid a dividend of $1.12 per share. This is a positive change from Toronto Dominion Bank’s previous quarterly dividend of $1.08. This represents a $4.48 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date of this dividend is Friday, July 10th. Toronto Dominion Bank’s payout ratio is 34.36%.

Analyst Ratings Changes

A number of research firms have recently weighed in on TD. Canadian Imperial Bank of Commerce lowered shares of Toronto Dominion Bank from a “strong-buy” rating to a “hold” rating in a report on Thursday, February 12th. Wall Street Zen lowered shares of Toronto Dominion Bank from a “hold” rating to a “sell” rating in a report on Saturday, May 23rd. Raymond James Financial upgraded shares of Toronto Dominion Bank from a “market perform” rating to an “outperform” rating in a report on Tuesday, May 12th. Weiss Ratings upgraded shares of Toronto Dominion Bank from a “buy (b)” rating to a “buy (a-)” rating in a report on Friday, March 27th. Finally, Zacks Research lowered shares of Toronto Dominion Bank from a “strong-buy” rating to a “hold” rating in a report on Monday, April 27th. Two research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, Toronto Dominion Bank currently has a consensus rating of “Moderate Buy”.

More Toronto Dominion Bank News

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

• Positive Sentiment: TD reported Q2 adjusted EPS of $2.38, up 21% year over year, and adjusted earnings of $4.2 billion, both ahead of expectations. Revenue also topped estimates, helped by strength in Canadian banking, wealth, and wholesale banking. TD Bank Group Reports Second Quarter 2026 Results
• Positive Sentiment: The bank lifted its quarterly dividend to $1.12 per share, a 3.7% increase, signaling confidence in capital generation and adding to its appeal for income-focused investors. TD BANK GROUP DECLARES DIVIDENDS
• Positive Sentiment: Management also guided to a $7 billion buyback, which should support per-share metrics and reinforce the view that capital returns remain a priority. TD Bank Q2 Earnings: Still A Buy, For Now
• Positive Sentiment: TD’s AI rollout in mortgage lending highlights an efficiency initiative that could reduce processing time, improve customer experience, and lower operating costs over time. TD Bank Puts Agentic AI To Work In Core Mortgage Lending
• Neutral Sentiment: Other major Canadian banks also beat earnings expectations, which helps confirm that the sector backdrop remains healthy, though it is not unique to TD. Canadian Banks Extend Earnings Beat Streak As Capital Markets Profit Jumps 27%
• Neutral Sentiment: Analysts note TD still faces AML-related remediation costs and a higher valuation after the rally, but these concerns were outweighed by the quarter’s strong operating performance. TD Bank Q2 Earnings: Still A Buy, For Now

Hedge Funds Weigh In On Toronto Dominion Bank

Institutional investors and hedge funds have recently made changes to their positions in the business. Smartleaf Asset Management LLC increased its stake in shares of 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 purchasing an additional 456 shares in the last quarter. McMillan Office Inc. bought a new position in shares of Toronto Dominion Bank during the fourth quarter valued at approximately $50,000. Swiss RE Ltd. bought a new position in shares of Toronto Dominion Bank during the fourth quarter valued at approximately $51,000. Strive Financial Group LLC bought a new position in shares of Toronto Dominion Bank during the fourth quarter valued at approximately $62,000. Finally, Sunbelt Securities Inc. increased its stake in shares of Toronto Dominion Bank by 232.6% during the third quarter. Sunbelt Securities Inc. now owns 715 shares of the bank’s stock valued at $57,000 after purchasing an additional 500 shares in the last quarter. 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.