Toronto-Dominion Bank shares advanced 1.5% in U.S. premarket trading after the lender reported fiscal third-quarter 2026 adjusted diluted earnings per share of C$2.77, exceeding the consensus estimate of roughly C$2.45.
Adjusted net income rose to C$4.67 billion from C$3.87 billion a year earlier, while total revenue increased to C$16.92 billion from C$16.03 billion. The provision for credit losses declined to C$917 million, down from C$1 billion in the prior-year period. Adjusted return on equity strengthened to 16%, up from 14.4%.
Analysts responded to the results with upward revisions. Barclays lifted its Canadian-listed price target to C$164 from C$140, while Bank of America raised its U.S.-listed target to $135 from $128. Keefe Bruyette resumed coverage with a Market Perform rating.
Investors also weighed commentary regarding TD’s U.S. anti-money-laundering asset cap and the timeline for remediation of its U.S. retail operations. The updates came as Canada’s S&P/TSX Composite Index hovered above 37,000, approaching record territory, supported by robust bank earnings. Peers including BMO and Scotiabank had also reported quarterly results that topped expectations earlier in the week.
U.S. equities showed modest gains, with the S&P 500 up 0.4% and the Nasdaq gaining 0.9%. The broader market backdrop remains influenced by ongoing U.S.–Canada trade tensions, including retaliatory tariffs on approximately $20 billion in U.S. imports.
