KB Home stock reports 20 percent revenue decline in Q3

Published on 10/07/2026 at 04:57 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

KBW cut its target from USD 65 to USD 54 on October 5 after softer demand. Q3 diluted EPS was USD 1.05 versus USD 1.61 a year earlier.

KBH, US48666K1097, Illustration mit AI erstellt.

KB Home (ISIN US48666K1097) reported USD 1.30 billion in third-quarter 2026 revenue, down 20 percent from the prior-year period. The results sharpened the contrast between weaker demand and a backlog that grew for the first time in four years.

Revenue falls as margins weaken

According to KB Home on September 22, 2026, net income fell to USD 65.3 million from USD 109.8 million in the quarter ended August 31, 2026. Diluted earnings per share declined to USD 1.05 from USD 1.61, while homes delivered decreased 19 percent to 2,732.

The housing gross profit margin was 16.5 percent, down from 18.2 percent a year earlier. Average selling price also slipped to USD 473,000 from USD 475,700, showing that pricing pressure affected both volume and revenue quality.

Backlog offers a counterpoint

KB Home's backlog increased 2 percent year over year to 4,398 homes valued at USD 2.05 billion on August 31, 2026, even as net orders fell 12 percent to 2,604. The company said its build-to-order homes represented 74 percent of third-quarter deliveries, a mix that supported the sequential margin improvement.

For fiscal 2026, KB Home kept its delivery outlook at 10,500 to 11,000 homes but narrowed housing revenue guidance to USD 4.90 billion to USD 5.10 billion. Full-year housing gross profit margin guidance stands at 16.0 percent to 16.2 percent, compared with the 16.5 percent reported for the quarter.

Analysts lower targets

According to Investing.com on October 5, 2026, Keefe, Bruyette and Woods cut its KB Home price target from USD 65 to USD 54 while retaining a Market Perform rating. The firm reduced its 2027 and 2028 estimates after the third-quarter results and cited weaker demand, pricing pressure and lower margin expectations.

MarketBeat reported an overall Hold consensus from 17 analysts, with four Buy ratings, nine Hold ratings and four Sell ratings. Its average price target of USD 53.08 lies 17.85 percent above KB Home's USD 45.04 closing price on October 5, 2026.

Stock remains near yearly low

KB Home stock closed at USD 45.04 on the NYSE on October 5, 2026, down 1.55 percent from the prior session. The price stood 2.29 percent above its 52-week low of USD 44.03 and below the 52-week high of USD 67.57.