PulteGroup stock dips as Q3 earnings miss estimates amid pressure on homebuying demand (PHM:NYSE)

PulteGroup (PHM) reported Q3 2026 earnings with net new orders down 6% YoY to 6,208 homes. Revenue fell 9% to $3.9B, and closings decreased 9% to 6,876 homes. Gross margin declined 140 bps, and incentives rose to 10.4%. Full-year closings guidance was reduced to 27,000-27,500 homes. Q4 gross margin is expected to decline further to 24.0-24.5%. The company recorded $26M in land impairment charges and walked away from 8,000 optioned lots.

PulteGroup (PHM) reported Q3 home sale gross margins of 24.8%, down from last year but stable from Q2. The company expects Q4 margins of 24.0%-24.5% and maintained its full-year forecast. It plans to close 7,000-7,500 homes in Q4 and 27,000-27,500 for 2026, with average selling prices of $550,000-$560,000. PulteGroup is controlling inventory and land spending, with $1.3B invested in Q3. It repurchased 2.8M shares and has $1.4B in cash.

PulteGroup reported 3Q 2026 revenue of $3.97B, net income of $475.73M, and EPS of $2.53, down 9.8%, 18.8%, and 14.5% YoY. Declines attributed to fewer closings, affordability pressures, and lower gross margins. Net orders and closings fell 6% and 9% YoY, respectively. Average selling prices decreased 1%, and gross margin narrowed to 24.8%.

PulteGroup (PHM) reported Q3 2026 earnings, with closings slightly below guidance but strong gross margins of 24.8%, leading to $476M in earnings. Traffic to communities declined 14% YoY, impacting sign-ups and closings, particularly among first-time buyers. Net new orders fell 6% YoY, while cancellation rates improved. PulteGroup managed starts and spec inventory carefully, investing $4B in land and returning $1.2B to shareholders.

PulteGroup and NVR, major US homebuilders, reported quarterly earnings below estimates due to high mortgage rates and weak consumer confidence. PulteGroup cut its full-year home delivery guidance, while NVR reported a 13% revenue decline. PulteGroup's stock rose 4% in early trading, while NVR's stock was little changed.

PulteGroup reported Q3 2026 net income of $476M ($2.53 per share), down from $586M ($2.96 per share) a year earlier. Revenue fell 9% to $3.97B. Home sale gross margin decreased to 24.8% from 26.2%. The company repurchased $350M in shares and had $1.4B in cash. Closings and net new orders declined, but backlog grew 4% to 10,298 homes.