Toast, Inc. shares experienced a significant after-hours plunge of 10.01% on Thursday, reversing earlier intraday gains following the release of the company's first-quarter fiscal 2026 financial results.
The restaurant software provider reported strong quarterly performance with net income rising 125% to $126 million and revenue climbing 22% to $1.63 billion. Both earnings per share of $0.20 and revenue exceeded analyst consensus estimates of $0.15 and $1.629 billion respectively.
Despite the top- and bottom-line beats, the post-market selloff suggests investors were disappointed with the magnitude of the revenue beat, which came in at just $1 million above consensus expectations. The market reaction indicates that traders were looking for a stronger upside surprise to justify the stock's valuation following its earlier intraday rally.
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