The Toronto-Dominion Bank (TD) Reports Record Q1 Earnings Fueled by Strong Revenue and Volume Growth

The Toronto-Dominion Bank (NYSE:TD) is one of the best Canadian value stocks to buy. On February 26, Toronto-Dominion Bank reported financial results for FQ1 2026, with net earnings reaching CAD 4.2 billion and EPS of CAD 2.44. This was supported by an 11% year-over-year increase in revenue and a 19% rise in adjusted pre-tax, pre-provision profit. The bank achieved an improved return on equity of 14.2% and saw strong volume growth in its Canadian personal and commercial banking segments, which posted record results across deposits, loans, and earnings.

The bank is aggressively returning capital to shareholders, having completed an $8 billion share buyback in January and immediately launching a new $7 billion program. These buybacks, which included the repurchase of ~84 million shares, contributed to a slight decline in the CET1 ratio to 14.5%. Management indicated it plans to manage this ratio toward a 13% target by H2 FY2027.

Looking ahead, The Toronto-Dominion Bank (NYSE:TD) is focusing on strategic investments in technology and regulatory remediation. The bank plans to spend ~CAD 500 million in 2026 on US anti-money laundering remediation and is targeting CAD 1 billion in medium-term value from AI deployments. While credit provisions remained within expectations at 43 basis points, the bank is maintaining over CAD 500 million in reserves to navigate potential policy and trade uncertainties.

The Toronto-Dominion Bank (NYSE:TD), together with its subsidiaries, provides various financial products and services in Canada, the US, and internationally. It has four segments: Canadian Personal & Commercial Banking, US Retail, Wealth Management & Insurance, and Wholesale Banking.

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