01—Abstract
Summary
Summary of the 10-Q filed October 22, 2026. Cited figures are marked; the original filing is the authoritative source.
PulteGroup, Inc. (NYSE: PHM) reported third-quarter 2026 results showing continued demand pressure.
Net income for the three months ended September 30, 2026 was $475.7 milliona, or $2.53 diluted earnings per share, versus $585.8 million, or $2.96 per diluted share, a year earlier. Total revenues were $3.97 billion versus $4.40 billion. Home sale revenues fell 9% on a 9% decline in closings (6,876 units) and a 1% decrease in average selling price ($561 thousand).
Gross margin from home sales declined to 24.8% from 26.2%. Net new orders fell 6% in units, and the filing cites elevated mortgage rates, which rose sharply in the third quarter, particularly in September, along with affordability pressure and geopolitical uncertainty. Nine-month net income was $1.29 billionb, or $6.79 per diluted share, versus $1.72 billion, or $8.55 per diluted share.
Management says it is adjusting production, emphasizing sales incentives, and rebalancing spec inventory toward build-to-order homes, while protecting liquidity. House and land inventory increased to $14.09 billionc from $12.93 billion at December 31, 2025, and operating cash flow for the nine months was $637.0 million, down from $1.10 billion. The company repurchased $1.0 billion of shares in the first nine months and had $1.5 billion of remaining authorization at quarter end.
Quarterly dividends were raised to $0.26d per share from $0.22 effective with the January 2026 payment. Balance sheet actions included issuing $800.0 million of senior notes in February 2026 and amending the revolving credit facility to $1.75 billion of committed capacity with a February 2031 maturity.
Cash and equivalents were $1.37 billion, and the Revolving Credit Facility had no borrowings outstanding at quarter end. The Financial Services mortgage repurchase agreement matures in August 2027, and management says it intends to refinance it.
02—Key points
Key Highlights
- Third-quarter net income was $475.7 million, or $2.53 diluted EPS, versus $585.8 million, or $2.96, in the prior-year quarter.
- Third-quarter home sale revenues were $3.86 billion, down 9%, driven by a 9% decline in closings to 6,876 units; average selling price was $561 thousand, down 1%.
- Home sale gross margin was 24.8% in the third quarter versus 26.2% a year earlier and 25.0% in the second quarter of 2026; the nine-month margin was 24.7% versus 26.9%.
- Net new orders fell 6% in units in the third quarter, with backlog dollars up 3% year over year to $6.44 billion at September 30, 2026.
- Operating cash flow for the nine months was $637.0 million, versus $1.10 billion, as inventory rose $1.15 billion to $14.09 billion.
- The company repurchased $1.0 billion of shares in the first nine months and retained $1.5 billion of remaining repurchase authorization; the quarterly dividend increased to $0.26 from $0.22.
- Notes payable rose to $1.81 billion, following $800.0 million of new senior notes in February 2026, and the revolving credit facility was upsized to $1.75 billion with no borrowings outstanding.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 22, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $3.97B$4.40B | −9.8% |
| Cost of Revenue | $2.91B$3.18B | −8.6% |
| Gross Profit | $1.07B$1.22B | −12.8% |
| SG&A Expenses | $397.20M$400.68M | −0.9% |
| Net Income | $475.73M$585.83M | −18.8% |
| EPS (Basic) | $2.55$2.98 | −14.4% |
| EPS (Diluted) | $2.53$2.96 | −14.5% |
| Shares Outstanding (Basic) | 186.63M196.54M | −5.0% |
| Shares Outstanding (Diluted) | 187.84M198.14M | −5.2% |
05—Questions
Frequently Asked Questions
Why did PulteGroup's earnings decline in the third quarter of 2026?
Net income fell to $475.7 million from $585.8 million. The filing attributes this to lower closings (down 9%), a slightly lower average selling price (down 1%), and a home sale gross margin of 24.8% versus 26.2%. Management cites elevated mortgage rates, affordability pressure, and increased sales incentives, along with higher land acquisition and development costs.
How is management responding to weaker demand?
The filing says management is adjusting production cadence and sales prices where necessary, using discounts, closing cost incentives, and mortgage rate buydowns, and reducing spec inventory. It also lists actions including emphasizing lot optionality, updating underwriting on land options (with some option agreements abandoned), adjusting overhead, and protecting liquidity while maintaining shareholder returns.
Is PulteGroup's liquidity position sound?
At September 30, 2026, the company had $1.37 billion of cash and equivalents, $38.1 million of restricted cash, and $1.4 billion of available capacity under its Revolving Credit Facility, which had no borrowings outstanding. Management believes current resources will fund operations for the next 12 months and beyond. The filing notes that the Financial Services repurchase agreement, which had $383.2 million outstanding, must be refinanced by its August 2027 maturity, with no assurance of renewal on commercially reasonable terms.
What is the outlook for margins and the land pipeline?
The filing states that management expects sales incentives to remain elevated and that gross margins will continue to be pressured over the near term by pricing actions and land acquisition and development costs. Land option deposits and pre-acquisition costs totaled $1.25 billion, with remaining purchase price under land options of $9.4 billion, and land-related charges were $65.0 million for the nine months.
How much capital has been returned to shareholders?
In the first nine months of 2026, PulteGroup repurchased 8.4 million shares for $1.0 billion and declared cash dividends of $148.1 million. An additional $1.5 billion repurchase authorization was approved on April 22, 2026, and $1.5 billion remained available at September 30, 2026.
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