The restaurant software firm projects accelerated profit expansion driven by AI adoption and new market opportunities.
Toast set a 2026 outlook for recurring gross profit growth of 23%-25%, citing AI integration and expanded total addressable markets. The guidance follows a Q2 2026 performance that included 28% recurring gross profit growth and a 26% GAAP operating income margin.
Management highlighted a record 9,500 net location additions in the quarter, surpassing the previous high by 1,000. The company attributed the gains to stronger demand for its software solutions and operational efficiencies.
Shares showed limited immediate reaction to the outlook during after-hours trading.