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TOST · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Toast, Inc. (TOST) stock moving?
Toast's Q3 2026 report (Nov 3) beat estimates, with revenue of $1.98B against $1.97B expected and EPS of $0.29 against $0.26. The stock responded positively: it rose 5.5% on Nov 2 ahead of the report, then closed up 5.5% on Nov 4 at $35.37 on 20.8M shares, about 2.3x the 30-day average. Since then it has drifted lower to $34.52 on Nov 10, still roughly 9% above the Oct 30 close of $31.68. Sell-side views remain supportive: BMO and Truist carry Buy ratings with $40 targets, and Morgan Stanley is Overweight with a $42 target after trimming it, implying roughly 16-22% upside from the current price. The main overhang is the FTC and Iowa Attorney General suit alleging deceptive subscription practices and hidden fees, filed Oct 29 (volume that day was 12.9M). Toast says it will vigorously defend the case, and the outcome and any remedies are not yet known. Management is also changing: CFO Elena Gomez steps away at year-end, with Michael Senno succeeding her on Jan 1, 2027, and CRO Jonathan Vassil retires Dec 31, 2026. The Ruby Tuesday enterprise deal is a positive, but its terms were not disclosed, so its financial weight is unclear. One Benzinga headline described shares sliding after Q3 earnings, but the daily price data show a gain on Nov 4, so the price record was used here.
News behind the analysis
- Truist Securities Maintains Buy on Toast, Raises Price Target to $40Truist kept its Buy rating on Toast and raised its price target to $40, about 16% above the Nov 10 close of $34.52.
- Toast, Inc. Responds to FTC Lawsuit Regarding Subscription PracticesToast issued a formal response to the FTC and state attorneys general lawsuit alleging deceptive subscription practices and hidden fees. The company has said it intends to vigorously defend against the claims.
- Analysts Update Ratings and Price Targets for ToastSeveral analysts updated their ratings and price targets for Toast on Nov 5, 2026, following the Q3 report.
- Toast, Inc. Announces Enterprise Technology Agreement with Ruby TuesdayToast will deploy its enterprise platform across all Ruby Tuesday restaurant locations. Financial terms were not disclosed.
- Morgan Stanley Maintains Overweight on Toast, Lowers Price Target to $42Morgan Stanley kept its Overweight rating on Toast but lowered its price target to $42 after the Q3 report.
- Toast, Inc. Reports Q3 2026 Financial ResultsToast reported Q3 2026 revenue of $1.98B against FactSet estimates of $1.97B, with results exceeding expectations for both revenue and EPS.
- Toast Q3 EPS $0.29 Beats $0.26 Estimate, Sales $1.981B Beat $1.973B EstimateToast reported Q3 EPS of $0.29 versus a $0.26 estimate and sales of $1.981B versus a $1.973B estimate.
- Toast Says President And CFO Elena Gomez Has Made Decision To Step Away From Her Role At End Of Calendar Year; Michael Senno Will Succeed Elena Gomez As CFO Effective January 1, 2027CFO Elena Gomez will step away at the end of calendar 2026. Michael Senno will succeed her as CFO effective January 1, 2027.
- FTC and Iowa Attorney General Sue Toast Over Deceptive PracticesThe FTC and the Iowa Attorney General filed legal action alleging Toast engaged in deceptive subscription practices and hidden fee structures.
- BMO Capital Maintains Buy Rating and $40 Price Target for Toast, Inc.BMO Capital reaffirmed its Buy rating and $40 price target on Toast, Inc.
About Toast, Inc.
Toast is a Boston-based company that sells an all-in-one cloud platform for restaurants, and increasingly retail shops: point-of-sale hardware and software, payment processing, and tools for online ordering, payroll and lending. It focuses on the restaurant industry and runs at roughly 180,000+ locations, adding about 8,500–9,500 net new locations a quarter in 2026.
How it makes money
Most revenue (roughly 80%+) comes from fintech: a small cut of the card payments processed through its system (gross payment volume of about $60 billion a quarter). Because much of that money is passed on to card networks and banks, the profit margin on it is thin. Subscription software fees bring in less revenue but most of the profit, and hardware and installation are sold at or below cost to win new customers. Quarterly revenue was about $2 billion in Q3 2026, and annual recurring revenue was about $2.5 billion, up roughly 24% from a year earlier.
What usually moves TOST
- Net new restaurant location additions
- Restaurant spending and consumer dining trends
- Payment volume and take rate
- Subscription and fintech gross profit growth vs. guidance
- Profit margins and share buybacks