KB Home Q3 Results Beat Estimates, Cut Margin Outlook

KB Home’s Q3 results on Sept. 22, 2026 showed the company beat consensus on revenue and earnings while trimming its full-year housing gross-profit margin outlook amid weakening housing conditions and ongoing share repurchases.

Results and Outlook

The company reported third-quarter revenue of $1.30 billion and diluted earnings per share of $1.05 for the period ended Aug. 31, 2026. These figures exceeded consensus estimates of about $0.88–$0.89 per share and roughly $1.29 billion in revenue. KB Home repurchased approximately 0.9 million shares for $50 million during the quarter and about 3.1 million shares for $175 million year to date.

KB Home lowered its full-year housing gross-profit margin guidance to 16.0%–16.2% from 16.1%–16.5% but maintained delivery and revenue targets of 10,500–11,000 homes and $4.9 billion–$5.1 billion.

Operations and Capital Allocation

Net income fell to $65 million from $110 million a year earlier, while homebuilding operating income declined to $67 million from $131 million. Deliveries dropped to 2,732 homes from 3,393, and net orders fell 12% to 2,604 homes. Net-order value declined about 8% to roughly $1.21 billion.

Housing gross profit margin on a reported basis decreased to 16.5% from 18.2% a year earlier. Adjusted margin was 16.8%, down from 18.9%. Management attributed margin pressure to mortgage-rate increases, affordability challenges, higher resale inventory, and cautious consumer demand.

The backlog rose modestly to 4,398 homes valued at about $2.05 billion, up roughly 2% in units and 3% in value from the prior year.

The quarter highlighted a familiar tradeoff for investors: results that beat expectations were tempered by lowered margin guidance and signs of softer volumes, even as KB Home continued returning capital through share repurchases.