PulteGroup (NYSE:PHM) Issues Earnings Results, Misses Expectations By $0.10 EPS

Posted by Francis Steltz on Oct 23rd, 2026

PulteGroup (NYSE:PHM – Get Free Report) released its quarterly earnings data on Thursday. The construction company reported $2.53 earnings per share for the quarter, missing analysts’ consensus estimates of $2.63 by ($0.10), Zacks reports. PulteGroup had a return on equity of 15.21% and a net margin of 11.62%. The business had revenue of $3.97 billion during the quarter, compared to analysts’ expectations of $4.15 billion. During the same period last year, the company earned $2.96 earnings per share. The firm’s revenue was down 9.8% compared to the same quarter last year.

Here are the key takeaways from PulteGroup’s conference call:

Higher interest rates significantly weakened demand: Third-quarter traffic fell 14% year over year and 11% sequentially, with first-time buyers most affected. Net orders declined 6%, closings fell 9%, and full-year closing guidance was reduced to 27,000–27,500 homes.
Near-term profitability faces pressure from slower absorption: Q4 gross margin is expected at 24.0%–24.5% as PulteGroup uses additional incentives to convert spec inventory, while full-year SG&A guidance rose to 10.3%–10.5% of revenue due to lower volume and communities taking longer to close out.
Margins and cost control remained resilient: Q3 gross margin was 24.8% despite higher incentives and $26 million of impairments, while build costs declined 5% year over year. Active-adult orders increased 11%, helping offset weakness among first-time and move-up buyers.
The balance sheet and capital allocation provide flexibility: PulteGroup ended the quarter with $1.4 billion of cash and net debt to capital of just 3%, repurchased $350 million of stock in Q3, and generated approximately $1.2 billion of shareholder returns year to date.
Management is preparing for a potentially prolonged downturn: The company invested $1.3 billion in land during the quarter but walked away from roughly 8,000 option lots and said it could reduce 2027 land spending if conditions warrant. Management remains focused on preserving returns rather than pursuing volume through aggressive price cuts.

PulteGroup Price Performance

Shares of PHM opened at $118.61 on Friday. The company has a market cap of $22.23 billion, a price-to-earnings ratio of 12.12, a price-to-earnings-growth ratio of 1.57 and a beta of 1.16. PulteGroup has a twelve month low of $107.15 and a twelve month high of $144.49. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 0.14. The company has a 50 day moving average of $119.99 and a two-hundred day moving average of $122.71.

PulteGroup Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, October 2nd. Investors of record on Tuesday, September 15th were given a dividend of $0.26 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $1.04 dividend on an annualized basis and a yield of 0.9%. PulteGroup’s dividend payout ratio is presently 10.62%.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on PHM. Weiss Ratings upgraded shares of PulteGroup from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, October 16th. Benchmark upgraded shares of PulteGroup to a “strong-buy” rating in a research note on Thursday, September 3rd. Wolfe Research set a $129.00 price objective on shares of PulteGroup and gave the company an “outperform” rating in a research note on Monday, August 24th. Evercore reissued an “outperform” rating on shares of PulteGroup in a report on Friday, September 25th. Finally, Barclays set a $109.00 price objective on shares of PulteGroup in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $137.24.

Get Our Latest Analysis on PHM

More PulteGroup News

Here are the key news stories impacting PulteGroup this week:

Positive Sentiment: PulteGroup reported $475.7 million in net income, or $2.53 per share, while management highlighted the benefits of its diversified operating platform amid challenging housing conditions. The company also expects 27,000–27,500 full-year home closings and plans approximately $5.3 billion in 2026 land investment, supporting future growth. PulteGroup Announces Q3 2026 Net Income and Financial Results PulteGroup Closing Outlook and Land Spending
Positive Sentiment: Analysts and financial commentary point to PulteGroup’s cash-flow generation and relatively modest leverage as reasons the shares may look attractively valued. Its diversified geographic and product exposure may also help it navigate uneven demand. PulteGroup Stock Valuation and Cash Flow
Neutral Sentiment: Backlog growth provides some forward visibility, but investors will focus on whether the backlog converts into closings and margins as mortgage rates and affordability pressures persist. PulteGroup Q3 2026 Earnings Call Transcript
Negative Sentiment: Third-quarter EPS of $2.53 missed the $2.63 consensus estimate, while revenue of $3.97 billion fell short of the $4.15 billion forecast. Net income declined from $586 million, or $2.96 per share, a year earlier, and revenue dropped 9.8% year over year. PulteGroup Third-Quarter Financial Results
Negative Sentiment: Elevated mortgage rates, inflation and economic uncertainty are reducing homebuyer demand, pressuring sales volumes, pricing and margins—particularly in the luxury-home segment. These factors initially drove selling pressure despite the company’s longer-term growth plans. PulteGroup Net Income Declines as Mortgage Rates Weigh on Sales

About PulteGroup

(Get Free Report)

PulteGroup, Inc is a major U.S. homebuilding company that designs, builds and sells homes for a range of buyers, including first-time, move-up and active-adult customers. Its operations include land acquisition and development, home construction, sales and marketing, and customer service.

The company markets homes under several well-known brands, including Pulte, Centex, Del Webb, DiVosta and American West. Through these brands, PulteGroup offers a variety of single-family home designs and communities, with products tailored to different price points, lifestyles and stages of homeownership.