Toast (NYSE:TOST) Posts Earnings Results, Misses Expectations By $0.07 EPS

04 Nov 2026, 16:40 by Kim Johansen · The Markets Daily

Toast (NYSE:TOST – Get Free Report) released its earnings results on Tuesday. The company reported $0.29 EPS for the quarter, missing analysts’ consensus estimates of $0.36 by ($0.07), FiscalAI reports. Toast had a return on equity of 23.90% and a net margin of 7.14%. The business had revenue of $1.98 billion during the quarter, compared to the consensus estimate of $1.97 billion. During the same quarter in the previous year, the firm earned $0.16 earnings per share. The firm’s revenue for the quarter was up 21.3% compared to the same quarter last year.

Here are the key takeaways from Toast’s conference call:

Strong Q3 execution: recurring gross profit grew 27% year over year, GAAP operating income nearly doubled to $165 million, and Toast added 8,500 net locations, ending the quarter with approximately 189,000 locations.
Toast raised its full-year outlook to 26% recurring gross profit growth and $840 million-$850 million in adjusted EBITDA; management also expressed confidence in maintaining 20%+ growth into 2027.
AI products are gaining traction, with Toast IQ Grow on track to exceed $10 million in ARR this year and IQ Team customers reporting a 41% reduction in overtime hours; subscription gross margin expanded 320 basis points year over year.
Enterprise, international, and retail initiatives are scaling rapidly, collectively reaching approximately $200 million in ARR and expected to double for the second consecutive year, with new customers including Bagel Brands, Outback Steakhouse Australia, and Zingerman’s Deli.
Management expects only modest adjusted EBITDA margin progression next year as it reinvests in new markets and long-term growth initiatives. Free-cash-flow conversion was pressured by higher hardware inventory, while the FTC lawsuit remains an unresolved legal risk.

Toast Trading Up 6.1%

TOST stock traded up $2.06 during midday trading on Wednesday, reaching $35.59. The company had a trading volume of 6,990,213 shares, compared to its average volume of 10,849,466. Toast has a 1 year low of $22.26 and a 1 year high of $39.67. The company has a 50 day moving average of $31.93 and a two-hundred day moving average of $29.38. The company has a market capitalization of $18.29 billion, a P/E ratio of 45.49 and a beta of 1.74.

Insider Activity at Toast

In other Toast news, General Counsel Brian R. Elworthy sold 6,507 shares of the company’s stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $29.35, for a total transaction of $190,980.45. Following the completion of the sale, the general counsel owned 204,023 shares of the company’s stock, valued at $5,988,075.05. This represents a 3.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Aman Narang sold 14,713 shares of the company’s stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $29.35, for a total transaction of $431,826.55. Following the sale, the chief executive officer directly owned 86,543 shares of the company’s stock, valued at approximately $2,540,037.05. This represents a 14.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 375,132 shares of company stock worth $12,961,699. 10.03% of the stock is currently owned by corporate insiders.

More Toast News

Here are the key news stories impacting Toast this week:

Positive Sentiment: Toast raised its 2026 adjusted EBITDA forecast to $840 million–$850 million and is targeting 26% growth in recurring gross profit. The stronger outlook may reassure investors about profitability and recurring growth. Article: Toast raises full-year 2026 adjusted EBITDA outlook
Positive Sentiment: Third-quarter revenue was $1.98 billion, slightly above the $1.97 billion consensus estimate and up 21.3% year over year, indicating continued business growth. Article: Toast Announces Third Quarter 2026 Financial Results
Neutral Sentiment: Coverage differed on adjusted earnings: some reports described a miss, while Zacks said Toast’s $0.37 per share matched its consensus estimate. That conflicting read may make the earnings signal less clear to investors. Article: Toast matches Q3 earnings estimates
Negative Sentiment: Some reports said quarterly EPS fell short of expectations, ending a seven-quarter streak of beating estimates. The CFO’s announced departure adds uncertainty and may help explain the initial negative reaction to the results. Article: Toast stock dips despite Q3 beat, guidance above estimates as CFO announces exit

Analyst Ratings Changes

Several research firms have issued reports on TOST. Needham & Company LLC restated a “buy” rating and issued a $45.00 price target on shares of Toast in a research report on Wednesday. BMO Capital Markets increased their price objective on Toast from $35.00 to $40.00 and gave the company an “outperform” rating in a research report on Wednesday, August 5th. Piper Sandler reissued an “overweight” rating on shares of Toast in a research note on Wednesday. Citigroup raised their price objective on Toast from $36.00 to $39.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Finally, Robert W. Baird lifted their target price on Toast from $30.00 to $33.00 and gave the stock a “neutral” rating in a report on Wednesday, July 8th. Seventeen investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $39.00.

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Toast Company Profile

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Toast, Inc (NYSE:TOST) provides a cloud-based technology platform designed for restaurants. Its integrated system combines point-of-sale software and hardware with payment processing, helping restaurants manage sales, orders, menus, guest interactions and day-to-day operations from a unified platform.