Toast, Inc. · TOST · FY2026 Q3 · Calendar Q4 2026
Toast lifts outlook as recurring profit growth holds at 27%
Toast’s Q3 update supports a growth-and-margin thesis: recurring gross profit growth remained strong, operating margin was 26%, and management raised full-year guidance. Location additions and early AI-product traction support the case for continued growth, while execution, hardware, regulatory and lending risks remain material.
Earnings scorecard
Reported versus consensusMarket reaction
event-close to next-session closeAsk FN2 about TOST FY2026 Q3
Transcript, numbers and history already loadedFree account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Compared with Q2, Toast reported 27% recurring gross profit growth in Q3 and raised its full-year outlook to 26% recurring gross profit growth and $840–$850 million adjusted EBITDA. Management also described expansion of AI products, new international launches and deeper entry into enterprise and retail markets.
Guidance delta
Raised full-year recurring gross profit growth outlook to 26% and adjusted EBITDA outlook to $840–$850 million; the prior outlook was 23–25% and $805–$825 million, respectively.
Key takeaways
- Recurring gross profit grew 27% year over year; operating margin was 26%.
- Toast added 8,500 net locations and reported roughly 189,000 restaurants served.
- Management said IQ Grow and IQ Team adoption is developing; IQ Grow is on track to exceed $10 million ARR.
- The updated outlook incorporates growth across AI products and enterprise, retail and international expansion.
Management priorities
- Expand AI-agent products and increase platform adoption across new markets.
- Continue international, enterprise and retail expansion.
- Mitigate hardware and memory-cost pressure while maintaining disciplined capital allocation.
Follow TOST with an agent that reads every filing, transcript, and price print. Free to start.
Try FN2 freeCompany context
Snapshot as of publicationToast, Inc. delivers a comprehensive cloud-based digital technology platform tailored specifically for the restaurant sector, serving businesses across the United States and Ireland. Its extensive product suite features an array of hardware solutions, including the foundational Toast Point of Sale (POS) system. Toast Flex offers versatile functionality, adaptable as an on-counter order and payment terminal, a server workstation, a guest kiosk, a kitchen display system, or an order fulfillment hub. For enhanced tableside service and expedited table turnover, the company provides Toast Go, a handheld POS device facilitating ordering and payment acceptance directly at the table, alongside Toast Tap, a compact card reader. Beyond hardware, Toast supplies robust software solutions. Toast Order & Pay empowers guests to place orders and settle bills conveniently from their mobile devices. The platform integrates specialized kitchen display system software, streamlining communication between front-of-house staff and the kitchen team.…
Technology peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| TRMB Trimble Inc. | FY2026 Q3 · Calendar Q4 2026 | — | -17.6% | Trimble Holds FY Revenue Outlook as AI Push Expands; Shares Fall |
| SMCI Super Micro Computer, Inc. | FY2027 Q1 · Calendar Q4 2026 | +47.2% | -4.2% | Super Micro Raises FY27 Revenue Outlook After Record Q1 |
| XYZ Block, Inc. | FY2026 Q3 · Calendar Q4 2026 | +9.7% | +14.9% | Block raises its outlook as AI monetization and Neighborhoods advance |
| SWKS Skyworks Solutions, Inc. | FY2026 Q4 · Calendar Q4 2026 | +0.8% | -6.9% | Skyworks’ Qorvo merger broadens portfolio as smartphone softness persists |
| ANET Arista Networks, Inc. | FY2026 Q3 · Calendar Q4 2026 | +11.1% | +9.9% | Arista reports record Q3 growth and raises FY2026 and FY2027 targets |
| ZBRA Zebra Technologies Corporation | FY2026 Q3 · Calendar Q4 2026 | +1.2% | -8.8% | Zebra raises FY2026 outlook as AI-enabled hardware demand grows, with memory costs a key watchpoint |
Latest beats and misses
Who reports nextBeat on EPS
- AIZFY2026 Q3 · November 3, 2026+29.5% EPS+4.2% move
- AIZNFY2026 Q3 · November 3, 2026+36.0% EPS+0.5% move
- SMCIFY2027 Q1 · November 3, 2026+47.2% EPS-4.2% move
- XYZFY2026 Q3 · November 3, 2026+9.7% EPS+14.9% move
- AMGNFY2026 Q3 · November 3, 2026+11.4% EPS+1.6% move
- SWKSFY2026 Q4 · November 3, 2026+0.8% EPS-6.9% move
Missed on EPS
- CHTFY2026 Q3 · November 4, 2026-55.7% EPS+0.9% move
- CPNGFY2026 Q3 · November 3, 2026-90.3% EPS+13.3% move
- TLNFY2026 Q3 · November 3, 2026-65.4% EPS+7.3% move
- APOSFY2026 Q3 · November 3, 2026-5.5% EPS-0.5% move
- TRIFY2026 Q3 · November 3, 2026-9.0% EPS-9.9% move
- APOFY2026 Q3 · November 3, 2026-5.5% EPS-4.9% move
Get the TOST recap when the next report posts
One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.
Sources
- Earnings call transcript and parsed analysis · 2026-11-04T15:11:08.310431+00:00
- FN2 earnings calendar · 2026-11-04T01:23:13.345574+00:00
- Polygon adjusted daily market bars · 2026-11-04T16:40:52.109303+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-11-04T16:40:52.106657+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-11-04. For educational purposes only; not investment advice.