Toronto-Dominion Bank Reports Strong Q2 Earnings, Announces U.S. Restructuring

Toronto-Dominion Bank (TD) reported strong second-quarter 2025 earnings, surpassing analyst expectations with adjusted EPS of $1.97 and revenues of $15.1 billion, driven by robust trading, fee income, and growth across capital markets, wealth management, and insurance segments. The bank's stock surged approximately 3.8%, contributing to a 21.7% year-to-date gain, outperforming the S&P 500 index, amid investor confidence bolstered by consistent operational performance and dividend stability. TD announced a strategic restructuring plan including a 2% workforce reduction to achieve annual pre-tax savings of up to C$650 million, alongside pre-tax restructuring charges of C$163 million, aiming to enhance long-term profitability. The bank is also expanding its AI research capabilities in New York to drive innovation and improve operational efficiency. Despite strong quarterly results, TD continues to address challenges from its prior anti-money laundering issues and regulatory compliance, particularly in its U.S. operations. Analysts generally maintain an outperform rating on TD shares, though price targets indicate limited upside from current levels, reflecting cautious optimism about the bank's near-term growth prospects.