Toll Brothers Inc. fell short of analysts' estimates for quarterly orders, signaling that fewer people are signing contracts to build homes as high prices and economic uncertainty hold some buyers back.

The luxury home builder said Tuesday that it had 2,303 signed contracts for the three months ending Jan. 31, missing analyst estimates of 2,417 orders. The company maintained its home delivery guidance for 2026 of 10,300 to 10,700.

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Although the company caters towards higher-end customers, Toll Brothers is still impacted by a sluggish housing market and declining homebuilder sentiment. Many homebuilders have had to lean on buyer incentives like price cuts to woo potential customers. And while mortgage rates are near the lowest level in more than a year, they are still far higher than the post-pandemic lows buyers enjoyed in 2021. 

"We continue to be very pleased with our focus on the luxury market and its more affluent customer base," Douglas Yearley Jr., Toll Brothers chairman and chief executive officer, said in a statement. "We also continue to benefit from our broad geographic footprint, the widest variety of home offerings and price points in the industry, and our balanced mix of build-to-order and spec homes."

The shares rose 1.6% in postmarket trading. The stock had risen 21% this year through Tuesday's close.