Citigroup Adjusts Price Target on PulteGroup to $127 From $122

PulteGroup reduced its 2026 home-closing forecast to 27,000-27,500 from 28,500-29,000, citing lower demand due to mortgage rates, inflation, and global unrest. Q3 closings fell 9% YoY to 6,876 homes, with revenue at $3.9B and net income at $476M. The company also cut its land investment budget by $100M to $5.3B.

PulteGroup, NVR, and M/I Homes reported Q3 2026 net income declines of 17%, 27%, and 37% YoY, respectively. Builder confidence fell to 29, the lowest since 2012. Builders are using concessions and rate buydowns to boost sales, impacting margins. NAHB cites affordability challenges and high mortgage rates as key issues.

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.