Q1 26 EPS
$0.52
MISS 4.50%
Est. $0.54
Q1 26 Revenue
$1.08B
MISS 1.56%
Est. $1.09B
vs S&P Since Q1 26
-0.1%
TRAILING MARKET
KBH +13.5% vs S&P +13.5%
Market Reaction
Did KBH Beat Earnings? Q1 2026 Results
KB Home delivered a disappointing fiscal first quarter of 2026, missing on both top and bottom lines as a sharp contraction in margins and falling deliveries weighed heavily on results. The homebuilder posted diluted EPS of $0.52, falling 4.50% short… Read more KB Home delivered a disappointing fiscal first quarter of 2026, missing on both top and bottom lines as a sharp contraction in margins and falling deliveries weighed heavily on results. The homebuilder posted diluted EPS of $0.52, falling 4.50% short of the $0.54 consensus estimate, while revenue of $1.08 billion trailed expectations by 1.56% and declined 22.6% year over year, with homes delivered dropping 14% to 2,370 units at an average selling price of $452,100. The most material drag was a severe compression in housing gross profit margin, which collapsed to 15.3% from 20.2% a year earlier, reflecting price reductions, higher relative land costs, and reduced operating leverage. Not all signals were negative, as net orders grew 3% to 2,846 homes and the cancellation rate improved to 12% from 16%, offering some evidence of stabilizing demand. For those weighing homebuilder options, KB Home guided full-year revenues of $4.80 billion to $5.50 billion, with management projecting a stronger second half as favorable regional mix and higher delivery volumes restore operating leverage.
Key Takeaways
- • Year-over-year net order growth of 3% to 2,846 homes driven by 7% increase in average community count to 274
- • Average selling price declined to $452,100 from $500,700 due to price reductions and geographic/product mix
- • Housing gross profit margin compressed to 15.3% from 20.2% due to price reductions, higher relative land costs, and reduced operating leverage
- • SG&A ratio increased to 12.2% from 11.0% due to decreased operating leverage, partially offset by $8.0 million of insurance recoveries
- • Cancellation rate improved to 12% from 16%
- • Effective tax rate declined to 17.1% from 21.4% due to higher relative impact of excess tax benefits from stock-based compensation
KBH YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
KBH Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our teams continued to execute well, particularly in the critical areas of new community openings and build times. We expect to reach our peak community count for the year within the second quarter at the height of the Spring selling season, which enhances our ability to drive net orders.”
— Robert McGibney, Q1 2026 Earnings Press Release
KBH Earnings Trends
KBH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
KBH EPS Trend
Earnings per share: estimate vs actual
KBH Revenue Trend
Quarterly revenue: estimate vs actual
KBH Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 MISS | $0.46 | $0.43 | -5.99% | $1.11B | +2.15% |
| Q1 26 MISS | $0.54 | $0.52 | -4.50% | $1.08B | -1.56% |
| Q4 25 BEAT FY | $1.79 | $1.92 | +7.26% | $1.69B | +2.15% |
| FY Full Year | $6.41 | $6.15 | -3.99% | $6.24B | +0.58% |
| Q3 25 BEAT | $1.51 | $1.61 | +6.91% | $1.62B | +2.19% |
| Q2 25 BEAT | $1.47 | $1.50 | +1.89% | $1.53B | +1.61% |
| Q1 25 MISS | $1.59 | $1.49 | -6.14% | $1.39B | -7.16% |