10-Q · July 9, 2026
KB Home reported a disappointing Q2 2026 with revenues of $1.11 billion, exceeding expectations but with diluted EPS at $0.43, which was short of the $0.45 forecast. The company faced notable declines in homebuilding…
Earnings analysis · 10-Q
KBH earnings analysis
Filed October 8, 2026 · Our reading of the company's report
The latest report
KB Home delivered a modest Q3 beat, with revenue of $1.297 billion and diluted EPS of $1.05, both improving sequentially from $1.11 billion and $0.43, respectively. However, revenue and EPS remained below the prior-year…
Read full summary
KB Home delivered a modest Q3 beat, with revenue of $1.297 billion and diluted EPS of $1.05, both improving sequentially from $1.11 billion and $0.43, respectively. However, revenue and EPS remained below the prior-year levels of $1.62 billion and $1.61, and the filing disclosed $415.0 million of floating-rate Credit Facility borrowings. Management maintained its full-year housing revenue outlook of $4.90 billion to $5.10 billion, producing a mixed overall signal.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.05
What stood out
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EPS beat estimates
Third-quarter revenue was $1.297 billion and diluted EPS was $1.05, exceeding consensus estimates of $1.295599 billion and $0.90, respectively.
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Sequential earnings improvement
Revenue increased from $1.11 billion in Q2 2026 to $1.297 billion in Q3 2026, while diluted EPS rose from $0.43 to $1.05.
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Share repurchases continued
The company repurchased 888,341 shares during Q3 2026 for $50.0 million, leaving $725.0 million available under the repurchase authorization as of August 31, 2026.
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Controls remained effective
Disclosure controls and procedures were concluded to be effective as of August 31, 2026, with no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, controls during the quarter.
What to watch
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Floating-rate debt exposure
KB Home reported $415.0 million of cash borrowings under its Credit Facility as of August 31, 2026. Borrowing rates are based on SOFR or a base rate plus a spread tied to the Leverage Ratio, creating exposure to higher interest costs.
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Year-over-year earnings decline
Q3 2026 revenue of $1.297 billion was below Q3 2025 revenue of $1.62 billion, while diluted EPS declined from $1.61 to $1.05 year over year, indicating continued pressure on demand and profitability.
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Finance leadership transition
The company stated that there were no material changes to risk factors disclosed in the November 30, 2025 Form 10-K, but its president and CEO also became interim principal financial officer effective July 6, 2026, increasing key-person and transition risk.
Management's outlook
Management maintained full-year 2026 outlook: housing revenue of $4.90 billion to $5.10 billion. Fourth-quarter outlook called for 3,000 to 3,500 deliveries, $1.45 billion to $1.65 billion of housing revenue and a 16.0% to 16.6% housing gross margin.
Earlier filings 2
10-Q · April 9, 2026
KB Home reported a weaker Q1 (period ended Feb 28, 2026): total revenue declined to $1,077,011,000 and diluted EPS fell to $0.52. Homebuilding gross margins and operating income compressed materially year-over-year,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.