
TOST raises its 2026 outlook as Q3 revenues beat estimates by 1.02%, fueled by operating strength, while AI expansion and 2027 margin plans take center stage.
Toast, Inc. operates a cloud-based technology platform for the restaurant industry in the United States and Ireland. The company is headquartered in Boston, Massachusetts.
| Revenue (TTM) | $7.15B |
| Gross Profit (TTM) | $1.94B |
| EBITDA | $573.00M |
| Operating Margin | 8.63% |
| Return on Equity | 25.60% |
| Return on Assets | 10.30% |
| Revenue/Share (TTM) | $12.27 |
| Book Value | $3.94 |
| Price-to-Book | 8.93 |
| Price-to-Sales (TTM) | 2.82 |
| EV/Revenue | 2.611 |
| EV/EBITDA | 32.65 |
| Quarterly Earnings Growth (YoY) | 80.20% |
| Quarterly Revenue Growth (YoY) | 21.30% |
| Shares Outstanding | $519.00M |
| Float | $487.89M |
| % Insiders | 5.56% |
| % Institutions | 95.45% |
Volatility is currently expanding

TOST raises its 2026 outlook as Q3 revenues beat estimates by 1.02%, fueled by operating strength, while AI expansion and 2027 margin plans take center stage.

Toast NYSE: TOST reported third-quarter results marked by continued location growth, higher recurring gross profit and expanding operating margins, while highlighting investments in artificial intelligence products, new customer segments and international markets.

Beyond analysts' top-and-bottom-line estimates for Toast (TOST), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended September 2026.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

Toast's Q3 2026 earnings are expected to have risen on customer growth, higher payment volumes and software adoption, but rising costs could have pressured margins.

Recently, Zacks.com users have been paying close attention to Toast (TOST). This makes it worthwhile to examine what the stock has in store.

Stocks are looking sluggish this afternoon , struggling for direction as investors await the Fed's rate hike decision.

Toast (TOST) customer relationships, operational data, and integrated workflows may protect its competitive position even as software development becomes cheaper. New locations, expansion into additional verticals, and greater adoption of add-on products could sustain revenue growth and increase revenue per customer. Toast IQ and future AI-powered tools could improve restaurant operations, increase switching costs, and make Toast's platform more valuable to customers.

Zacks.com users have recently been watching Toast (TOST) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

Toast is rated Buy due to strong earnings growth, raised FY2026 outlook, and a low FWD EV/Sales of 2.19x versus sector median. TOST reported 22% YoY growth in Locations and payment volume, with Q2 FY2026 revenue up 23% to $1.908B and operating income of $152M. Expansion into AI-driven products and new verticals like labor and marketing enhances TOST's monetization and retention opportunities, supporting the investment thesis.
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