KB Home stock faces a 20 percent Q3 revenue drop

Published on 10/04/2026 at 20:48 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

KB Home stock is last at USD 45.75 after its October 2 session, while Q3 diluted EPS reached USD 1.05. Full-year housing revenue guidance is USD 4.90 billion to USD 5.10 billion.

KBH, US48666K1097, Illustration mit AI erstellt.

KB Home stock is last at USD 45.75 on the NYSE on October 2, 2026 at 4:01 p.m. ET, down 1.70 percent for the session. The homebuilder's third-quarter revenue fell 20 percent year over year to USD 1.30 billion, according to KB Home in its September 22, 2026 release.

Revenue falls as margins narrow

For the quarter ended August 31, 2026, diluted EPS was USD 1.05, down from USD 1.61 in the year-earlier period. Net income declined to USD 65.3 million from USD 109.8 million, while homes delivered fell 19 percent to 2,732, according to KB Home.

The pressure was clearest in profitability. GAAP housing gross profit margin fell to 16.5 percent from 18.2 percent, while adjusted margin was 16.8 percent against 18.9 percent a year earlier. Pricing pressure, higher relative land costs and lower operating leverage explain why the earnings beat did not remove the central margin risk.

Guidance preserves the full-year range

KB Home maintained 2026 delivery guidance of 10,500 to 11,000 homes and housing revenue guidance of USD 4.90 billion to USD 5.10 billion. Fourth-quarter housing revenue is guided to USD 1.45 billion to USD 1.65 billion, with a gross profit margin range of 16.0 percent to 16.6 percent, according to KB Home.

Backlog offered a counterpoint: homes in backlog rose 2 percent year over year to 4,398, and backlog value increased 3 percent to USD 2.05 billion. Net orders still declined 12 percent to 2,604, leaving demand and pricing as the key variables for the next quarter.

Analysts keep a cautious stance

MarketBeat reported on September 19, 2026, that 15 analysts held a consensus rating of Hold, with an average 12-month target of USD 59.9167. That target lies 31.0 percent above the USD 45.75 reference price. On October 3, 2026, MarketBeat reported that Wall Street Zen downgraded KB Home from Hold to Sell, while the broader consensus remained Hold.

KB Home stock stays near yearly low

KB Home stock was last at USD 45.75 on the NYSE on October 2, 2026 at 4:01 p.m. ET, with volume of 1,400,566 shares and a market capitalization of USD 2.8 billion. Its 52-week range was USD 44.03 to USD 67.57, placing the stock USD 1.72 above its yearly low.