Toro (TTC) Q1 Revenue Tops Estimates, but Shares Fall on Tariff and Inflation Warning

The Toro Company (NYSE:TTC) reported Q1 CY2026 results on June 5, with revenue rising 8.1% year-over-year to $1.42 billion and non-GAAP EPS of $1.60 beating analyst estimates by 6.7%. Despite the beat, shares fell 2.3% to $88.85 as management warned inflation and tariff headwinds will intensify before mitigation measures take hold. CEO Richard Olson attributed strong demand to broad-based portfolio growth, with the professional segment boosted by products like the JT21 horizontal directional drill. The company’s AMP productivity program improved margins, though supply-chain costs persisted. CFO Angela Drake said updated full-year guidance reflects pricing actions and productivity gains, but cautioned that “pressures from inflation and tariffs will be more acute in Q3” as full mitigation won’t arrive until Q4. Toro is monitoring weather, tariff changes, and macroeconomic trends while investing in electrification, smart connectivity, and autonomous solutions to maintain competitive differentiation.