Lennar (LEN) Q3 2026 Earnings
Excludes mark-to-market losses of $53 million on technology investments and one-time items of $39 million, net, in the Financial Services segment (primarily a litigation accrual reversal). GAAP EPS was $1.19.
How Did LEN Stock React to Q3 2026 Earnings?
Did LEN Beat Earnings? Q3 2026 Results
No. Lennar reported Q3 2026 earnings of $1.23 a share on Sep 16, 2026, missing the $1.30 consensus estimate by 5.1%. Revenue was $8.0B against a $8.4B estimate.
Lennar delivered a disappointing third quarter of fiscal 2026, missing on both the top and bottom lines as elevated mortgage rates and weakening affordability weighed heavily on the nation's homebuilders. The company posted adjusted EPS of $1.23, falling short of the $1.30 consensus estimate by 5.11%, while revenue of $8.05 billion trailed expectations by 3.88% and dropped 8.5% from a year ago. The homebuilding segment was the central drag, as gross margin on home sales compressed to 15.8% from 17.5% a year earlier, pressured by lower average selling prices and higher land costs, even as construction cost reductions provided partial relief. New orders fell 9% to 20,879 homes, reinforcing the demand softness that has rippled across the sector, with mortgage rates hovering near 6.8% limiting buyer purchasing power. Looking ahead, Lennar trimmed its full-year delivery guidance to 80,000 to 81,000 homes from 82,000 to 83,000, and guided Q4 gross margins to 15.5% to 16.0%, signaling the pressure is unlikely to ease meaningfully in the near term.
- Construction cost per square foot improved 1% sequentially and 6% year over year
- Cycle time reached new low of 116 days, down from 121 days last quarter and 126 days a year ago
- Even-flow production at 4.1 homes per community per month for both starts and sales
- Completed unsold inventory reduced to 1.8 homes per community from 2.1 last quarter
- Inventory turn at 2.4 times
- Approximately 12.0% in incentives to sustain volume in affordability-constrained market
- Gross margin improved sequentially to 15.8% despite market headwinds
“Our third quarter 2026 results reflect consistent focus on our operating strategy of maintaining volume and production while navigating a challenging economic environment. While our earnings of $1.19 per share were below expectations, they reflect the nature of the environment in which we are operating, which has deteriorated since our last earnings call.”
Lennar CEO, on the earnings call
What Is Lennar's Outlook?
For Q4 2026, Lennar expects new orders of 19,500–20,500 homes, deliveries of 22,000–23,000 homes, average sales price of $370,000–$380,000, gross margin on home sales of 15.5%–16.0%, SG&A as a percentage of home sales of 8.7%–9.0%, and Financial Services operating earnings of $90–$95 million. Full-year 2026 delivery guidance was reduced to approximately 80,000–81,000 homes from the prior 82,000–83,000, reflecting continued pressure from elevated interest rates and deteriorating market conditions. Management noted affordability remains the defining constraint, with mortgage rates at approximately 6.8% and even higher post-quarter end.
LEN YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $8.0B | $8.8B | −8.5% |
| Net Income | $283.9M | $590.9M | −52.0% |
| Operating Income | $502.0M | $684.6M | −26.7% |
LEN Revenue by Segment
LEN Revenue by Geography
When Does Lennar Report Next?
Figures from SEC filings and company reports. Not investment advice.