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Q2 26 EPS
$0.43
MISS 5.99%
Est. $0.46
Q2 26 Revenue
$1.11B
BEAT +2.15%
Est. $1.09B
vs S&P Since Q2 26
+16.4%
BEATING MARKET
KBH +18.3% vs S&P +1.9%
Market Reaction
Did KBH Beat Earnings? Q2 2026 Results
KB Home delivered a mixed fiscal second quarter, posting revenue of $1.11 billion that edged past the $1.09 billion consensus by 2.15% but fell sharply 27.3% year over year, while earnings per share of $0.43 missed the $0.46 analyst estimate by 5.99%… Read more KB Home delivered a mixed fiscal second quarter, posting revenue of $1.11 billion that edged past the $1.09 billion consensus by 2.15% but fell sharply 27.3% year over year, while earnings per share of $0.43 missed the $0.46 analyst estimate by 5.99%. The headline numbers reflected a painful combination of fewer homes delivered, with deliveries dropping 23% to 2,395, and a lower average selling price of $461,900 versus $488,700 a year ago, compressing the housing gross profit margin to 15.2% from 19.3% and squeezing the homebuilding operating income margin to just 2.5% from 8.6%. Ahead of the report, some analysts had flagged the stock as potentially undervalued, though the margin deterioration underscores real near-term pressure. Management sounded a cautiously optimistic note on the path forward, guiding third-quarter housing revenues of $1.20 to $1.35 billion with improving gross margins of 16.0% to 16.6%, and projecting full-year deliveries of 10,500 to 11,000 homes on revenues of $4.90 to $5.30 billion, with sequential volume and margin gains expected in each remaining quarter.
Key Takeaways
- • Return to predominantly Built to Order model with 73% of net orders
- • 35 new community openings at the high end of projection
- • Build time reduction of more than a full week sequentially
- • Average community count grew 9% year over year to 278
- • Cancellation rate improved to 12% from 16% year over year
KBH Forward Guidance & Outlook
For Q3 2026, KB Home guided deliveries of 2,600–2,800 homes, housing revenues of $1.20–$1.35 billion, housing gross profit margin of 16.0%–16.6% (excluding inventory-related charges), SG&A as a percentage of revenues of 11.3%–11.9%, an effective tax rate of 19%–21%, and ending community count of 270–280. For full-year 2026, the company expects deliveries of 10,500–11,000 homes, housing revenues of $4.90–$5.30 billion, housing gross profit margin of 16.1%–16.5% (excluding inventory-related charges), SG&A ratio of 11.4%–11.8%, and an effective tax rate of 22%–24%. Management projects sequentially higher delivery volumes and gross margins in each of the final two quarters of fiscal 2026.
KBH YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
KBH Revenue by Segment
With YoY comparisons, source: SEC Filings
“Operationally, our teams continued to execute well and generated meaningful results, achieving 35 new community openings, at the high end of our projection, and reducing our build times by more than a full week sequentially from home start to home completion.”
— Robert McGibney, Q2 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% |