Lennar

Lennar (LEN) Q1 2026 Earnings

Reported Mar 12, 2026 at 4:34 PM ET · SEC Source

Q1 26 EPS

$0.93

MISS 1.66%

Est. $0.95

Q1 26 Revenue

$6.62B

MISS 4.08%

Est. $6.90B

vs S&P Since Q1 26

-16.9%

TRAILING MARKET

LEN -4.3% vs S&P +12.6%

Market Reaction

Did LEN Beat Earnings? Q1 2026 Results

Lennar Corporation delivered a bruising fiscal Q1 2026, posting earnings of $0.93 per diluted share on revenue of $6.62 billion, a sharp 13.1% decline year over year that fell 4.08% short of the $6.90 billion consensus estimate, as the homebuilder ab… Read more Lennar Corporation delivered a bruising fiscal Q1 2026, posting earnings of $0.93 per diluted share on revenue of $6.62 billion, a sharp 13.1% decline year over year that fell 4.08% short of the $6.90 billion consensus estimate, as the homebuilder absorbed the full weight of a market squeezed by high mortgage rates, stretched affordability, and rising geopolitical uncertainty. The quarter's defining wound was margin compression, with gross margin on home sales collapsing to 15.2% from 18.7% a year ago as average selling prices slid 8% to $374,000 amid roughly 14% in buyer incentives, even as cycle times hit a company record of 122 days and construction costs fell more than 2.5%. Net earnings tumbled to $229 million from $520 million in Q1 2025, a steep drop that underscored just how severely reduced operating leverage hammered the bottom line. Looking ahead, Lennar guided Q2 deliveries of 20,000 to 21,000 homes with gross margin recovering modestly to 15.5% to 16.0%, signaling cautious optimism that the spring selling season will restore some pricing power as demand, in management's view, remains deferred but building.

Key Takeaways

  • Cycle time improved to 122 days, the company's shortest ever
  • Inventory turn increased to 2.5 times reflecting strength of land-light model
  • Construction costs improved over 2.5% in the quarter and decreased 12% over the last two years
  • Approximately 14% in buyer incentives used to sustain volume in affordability-constrained market
  • Average sales price decreased 8% year over year to $374,000
  • Gross margin on home sales compressed to 15.2% from 18.7% year over year due to lower revenue per square foot and higher land costs
  • Financial Services operating earnings declined due to lower lock volume and lower profit per locked loan
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LEN YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

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LEN Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26
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LEN Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26

“Our first quarter of fiscal year 2026 was defined by the same persistent headwinds that have challenged the housing market for over three years - high mortgage rates, constrained affordability, cautious consumer sentiment, and geopolitical uncertainty, especially now including the recent conflict in Iran. As our results reflect, Lennar remained focused on executing our consistent operating strategy to maintain production and support housing supply, while driving structural improvements across our business.”

— Stuart Miller, Q1 2026 Earnings Press Release