KB Home (KBH) Reports Q2 2026 Earnings: Revenues Decline 27% as Deliveries Fall
Key Takeaways
- Revenues totaled $1.11 billion for the quarter ended May 31, 2026, down 27% year over year.
- Diluted earnings per share came in at $0.43, compared to $1.50 in the prior-year period.
- Homes delivered fell 23% to 2,395, with average selling price declining to $461,900.
- Company repurchased $75.0 million of common stock during the quarter.
- Management provided updated guidance for the third quarter and full fiscal year 2026.
- Net orders declined 4% year over year to 3,317 homes.
Earnings Context and Why It Matters
KB Home, a major U.S. homebuilder, reports results on a fiscal year ending November 30. Its second-quarter performance offers insight into housing demand trends, pricing power, and operational efficiency amid elevated interest rates and a competitive market. Investors monitor these reports closely because housing activity influences broader economic indicators, employment in construction, and consumer spending patterns. Sequential improvements in deliveries and margins, as guided, can signal stabilizing conditions for the builder and its peers.
Reported Results
KB Home reported second-quarter 2026 revenues of $1.11 billion, a 27% decline from the year-earlier period. Diluted earnings per share totaled $0.43 versus $1.50 previously. The company delivered 2,395 homes, down 23%, at an average selling price of $461,900 compared with $488,700. Housing gross profit margin was 15.2%, down from 19.3%. Net income reached $27.3 million. The results aligned with or exceeded the midpoint of previously issued guidance ranges. KB Home also repurchased 1.4 million shares for $75.0 million and maintained total liquidity of $1.12 billion at quarter end. To compare these metrics with peers, I checked Tickeron’s AI Screener for similar patterns in the homebuilding sector.
Market Reaction and Investor Sentiment
Shares of KBH traded in a measured manner following the after-market release on June 23, 2026, reflecting investor focus on the company’s ability to meet guidance and execute share repurchases amid softer year-over-year volumes. Analysts noted the resilience in backlog and community expansion as positive factors supporting longer-term positioning in the homebuilding sector.
Forward Outlook and Key Factors to Monitor
KB Home issued guidance for the third quarter ending August 31, 2026, projecting deliveries between 2,600 and 2,800 homes and housing revenues of $1.20 billion to $1.35 billion. Housing gross profit margin is expected in the 16.0% to 16.6% range, assuming no inventory charges. Selling, general and administrative expenses are forecasted at 11.3% to 11.9% of revenues.
For the full fiscal year, the company anticipates deliveries of 10,500 to 11,000 homes and revenues of $4.90 billion to $5.30 billion. Gross margin guidance stands at 16.1% to 16.5%. Investors should watch monthly order trends, community count changes, and any updates on land investment discipline. Cost management and the shift toward built-to-order homes remain central to sustaining margins.
Additional attention will center on interest rate movements, buyer affordability, and cancellation rates as indicators of demand stability heading into the second half of the fiscal year.
Using AI Tools in My Research Process
In my own work, I occasionally turn to Tickeron’s AI Screener to filter stocks by industry, technical patterns, and fundamentals. It allows me to quickly scan thousands of names and spot ideas that align with the themes I’m tracking, such as homebuilder performance relative to broader market trends. This helps refine my perspective without replacing the core fundamental analysis.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
KBH's RSI Oscillator remains in oversold zone for 1 day
It is expected that a price bounce should occur soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1.82% 3-day Advance, the price is estimated to grow further. Considering data from situations where KBH advanced for three days, in 210 of 305 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
KBH may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for KBH turned negative on October 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In 36 of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at 68%.
The 50-day moving average for KBH moved below the 200-day moving average on September 09, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KBH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 67%.
The Aroon Indicator for KBH entered a downward trend on October 05, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 9 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.766) is normal, around the industry mean (1.963). P/E Ratio (13.487) is within average values for comparable stocks, (22.943). Projected Growth (PEG Ratio) (0.280) is also within normal values, averaging (1.217). Dividend Yield (0.021) settles around the average of (0.013) among similar stocks. P/S Ratio (0.573) is also within normal values, averaging (24.205).
The Tickeron PE Growth Rating for this company is 12 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 78 (best 1 - 100 worst), indicating slightly worse than average price growth. KBH’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 79 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 90 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KBH’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock worse than average.
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General Information
a constructor and seller single family homes as well as condominium complexes
Industry Homebuilding
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