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Research Alert: Td Reports Q2 Fy 26 Earnings Beat As Credit Quality Shines

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

The Toronto-Dominion Bank (TD) reported strong Q2 FY 26 (Oct.) results, with operating EPS of CAD2.38 vs. CAD1.97 in the prior year, beating consensus by CAD0.12. Revenue rose 6% to CAD16.0B on 9% NII growth. Credit quality remained exceptional as provisions fell 25% Y/Y to CAD1.0B and gross impaired loans improved 4 bps sequentially to 54 bps, outperforming peers, which saw deterioration. The strong performance drove adjusted ROE to 14.4%, the highest level in two years, though TD increased its dividend modestly by 3.7% to CAD1.12, reflecting its rebuild mode. Management highlighted strong momentum across businesses and ongoing AML remediation progress while maintaining disciplined expense management. Efficiency improved, with the adjusted ratio reaching 57.0% from 57.6% as expense growth of 5% lagged revenue gains. The CET1 ratio of 14.3% declined 60 bps Y/Y but remains well above peers and regulatory requirements, supporting TD's CAD2.0B in shareholder returns and continued buyback program.

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