10-Q · July 22, 2026
PulteGroup delivered Q2 EPS of $2.48, above the $1.79 earned in Q1, as home-sale margin improved sequentially to 25.0% and orders rose 6% to 7,536 units. However, revenue declined 10% year over year to $3.983 billion,…
Earnings analysis · 10-Q
PHM earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
PulteGroup’s Q3 results showed broad year-over-year deterioration: revenue declined approximately 10%, EPS fell to $2.53 from $2.96, gross margin contracted 140 basis points to 24.8%, and orders declined 6%. Florida and…
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PulteGroup’s Q3 results showed broad year-over-year deterioration: revenue declined approximately 10%, EPS fell to $2.53 from $2.96, gross margin contracted 140 basis points to 24.8%, and orders declined 6%. Florida and backlog growth provided offsets, while liquidity remained strong at $1.4 billion of unrestricted cash and $1.4 billion of revolver availability. Management expects elevated incentives, dynamic starts, and near-term margin pressure to persist, with no quantitative financial guidance provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
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
- $2.53
- Gross margin
- 24.8%
What stood out
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Revenue and EPS weakened year over year
Revenue was $3.974 billion, down approximately 9.7% from $4.4 billion in Q3 2025 and essentially flat versus $3.98 billion in Q2 2026. Diluted EPS was $2.53 versus $2.96 year over year, but increased from $2.48 in Q2.
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Gross margin contracted 140 bps
Home-sale gross margin declined to 24.8% from 26.2% year over year and 25.0% in Q2, a 140-basis-point year-over-year contraction. Management attributed the decline to elevated incentives and higher land acquisition and development costs.
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Backlog grew despite weaker orders
Backlog increased 4% year over year to 10,298 homes, or $6.444 billion, despite third-quarter net new orders declining 6% to 6,208 units and 4% to $3.499 billion.
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Florida outperformed other segments
Florida was the strongest major market: revenue increased slightly to $1.103 billion, orders rose 6% to 1,823 units, and backlog increased 15% to 3,097 units. By contrast, West orders fell 15% to 945 units and West backlog declined 13% to 1,578 units.
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Liquidity supports capital allocation
Liquidity remained substantial, with $1.4 billion of unrestricted cash and $1.4 billion of available revolving-credit capacity at September 30, 2026. Debt-to-total capitalization rose to 12.1% from 11.2% at December 31, 2025.
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Cash generation declined amid buybacks
Operating cash flow was $637.0 million for the first nine months, down from $1.1 billion in the prior-year period. Capital expenditures were $78.2 million, while the company repurchased $1.0 billion of shares and declared $148.1 million of dividends.
What to watch
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Mortgage rates are hurting demand
Demand and affordability remain pressured: mortgage rates increased sharply during Q3, net new orders fell 6% to 6,208 units, closings declined 9% to 6,876 units, and the cancellation rate was 16%.
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Incentives and land costs pressure margins
Margin pressure is expected to persist: gross margin fell to 24.8% from 26.2% year over year, while management expects elevated sales incentives and higher land costs to continue affecting margins in the near term.
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Land and inventory exposure elevated
Land and inventory exposure remains material. The company recorded $37.5 million of third-quarter land-related charges, had $9.4 billion of remaining land-option purchase commitments, and inventories increased by $1.1 billion in the first nine months.
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Working capital absorbed cash
Cash generation weakened as operating cash flow fell to $637.0 million from $1.1 billion year over year, while inventories increased $1.1 billion. The company nevertheless repurchased $1.0 billion of shares during the first nine months.
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Mortgage funding requires refinancing
Pulte Mortgage had $383.2 million outstanding under its repurchase agreement at September 30, 2026, with $241.8 million of remaining capacity; the agreement matures August 10, 2027 and must be refinanced or repaid.
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No formal risk-factor changes
The filing states there were no material changes to the risk factors disclosed in the 2025 Form 10-K. However, management highlighted geopolitical and macroeconomic uncertainty, including Middle East tensions, as factors affecting inflation, rates, and consumer confidence.
Management's outlook
No quantitative EPS or revenue guidance was provided. Management expects sales incentives to remain elevated, house-start pace to remain dynamic, and near-term gross margins to continue facing pressure.
Earlier filings 4
10-Q · April 23, 2026
PulteGroup reported quarter revenues of $3,408,572,000 and diluted EPS of $1.79, roughly in line with consensus revenue (slight beat) but a $0.02 EPS miss. Order activity improved (net new orders +3% to 8,034 units /…
10-K · February 4, 2026
PulteGroup reported FY2025 revenue of $17.31B and diluted EPS of $11.12, with home sale gross margin down to 26.3% from 28.9% in 2024. Management slowed starts, increased sales incentives and recognized $126.9M of…
10-K · February 6, 2025
PulteGroup reported strong 2024 results driven by higher closings and mortgage-captive volume: Homebuilding revenues rose to $17.514B (+11% vs. 2023) and consolidated net income was $3.083B with diluted EPS of $14.69…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.