Toronto-Dominion Bank posts record Q2 earnings, beats estimates, plans $7B buyback.

Toronto-Dominion Bank reported strong Q2 results, surpassing revenue and earnings per share estimates with record profits and solid efficiency. Despite recent anti-money laundering fines and higher valuation multiples, the bank maintains a strong balance sheet and high return on equity, supporting ongoing earnings growth. Management forecasts moderate expense growth, $500 million AML remediation costs in 2026, and $2.9 billion U.S. net income, alongside a $7 billion share buyback plan. The bank trades at a premium but its operational strength justifies a moderate buy rating.