PulteGroup (PHM) Q3 2026 earnings summary

Executive summary

• Q3 net income was $476M, or $2.53 per diluted share, versus $586M and $2.96 a year earlier; higher mortgage rates and weaker confidence pressured demand.

• Home-sale revenue fell 9% YoY to $3.859B and closings declined 9% to 6,876; move-up and active-adult buyers accounted for >60% of business.

Financial highlights

• Average closing price declined 1% YoY to $561,000.

• Home-sale gross margin was 24.8%, down 140 bps YoY, including $26M of land impairments, or ~70 bps.

• SG&A was $397M, or 10.3% of home-sale revenue, versus $401M and 9.4% a year earlier.

• Net new orders were 6,208 homes, down 6% YoY; order value was $3.5B, down 4%.

• Backlog grew 4% YoY to 10,298 homes; backlog value rose 3% to $6.444B.

Outlook and guidance

• Q4 guidance: 7,000–7,500 closings, $550K–$560K average sales price, and 24.0%–24.5% gross margin.

• FY 2026 guidance: 27,000–27,500 closings, $550K–$560K average sales price, and 24.5%–25.0% gross margin.

• FY SG&A guidance is 10.3%–10.5% of home-sale revenue; community-count growth is forecast at 3%–5%.

• FY land acquisition and development investment is expected at $5.3B, with operating cash flow of ~$1B.

• Q4 build costs are expected to decline YoY at a low-single-digit rate, with Q4 cost levels similar to Q3.