AI Takeaway
In Q2 FY2026, PulteGroup reported a 9.6% YoY revenue decline to $3.98B and a 22.4% drop in net income to $472.0M, driven by an 8% decrease in closings and a 200-basis-point contraction in home sale gross margin to 25.0%, as the company continued to lean on sales incentives and price adjustments amid weaker affordability-driven demand while still increasing net new orders 6% and returning $681.2M to shareholders via buybacks in the first six months of the year.
Revenue
$3.98B
-9.56% YoY
EPS (Basic)
$2.49
-18.36% YoY
Filed · Source: SEC EDGAR 10-Q filing
Pultegroup (PHM) reported Q2 FY2026 revenue of $3.98B, down 9.6% year over year. The company posted net income of $472M, down 22.4% from a year earlier, with diluted EPS of $2.48.
Home sale gross margin decreased to 25.0% in Q2 FY2026 from 27.0% in the prior-year quarter, though it improved sequentially from 24.4% in Q1 FY2026. Management attributes the YoY decline to elevated sales incentives, pricing actions, and higher land acquisition and development costs, which it expects to continue impacting margins in the near term.
Source: 10-Q Item 2 MD&A
Closings decreased 8% YoY to 6,997 units due to a weaker order backlog entering 2026, while net new orders increased 6% in units to 7,536 (5% in dollars to $4.08B), driven by higher volumes in Florida and Midwest, partially offset by declines in the West segment.
Source: 10-Q Item 2 MD&A
West segment income before income taxes fell 56% YoY to $54.0M on a 20% revenue decline, primarily due to weakness in Las Vegas and Arizona; Florida income was roughly flat at $189.8M despite a slight ASP increase, while Northeast income fell 50% on a 27% drop in closings.
Source: 10-Q Item 2 MD&A
PulteGroup repurchased $681.2M of shares and raised its quarterly dividend 18% (from $0.22 to $0.26/share) in the first six months of FY2026; it also issued $800.0M of senior notes in February 2026 at lower rates to refinance $589.1M of maturing/redeemed notes, and expanded its revolving credit facility to $1.75B (maturing February 2031).
Source: 10-Q Item 2 MD&A
The company controlled 228,241 lots at June 30, 2026 (55% optioned), with a remaining option purchase price of $9.7B, as it emphasizes lot optionality and has walked away from certain land option agreements amid rising land costs and softer demand.
Source: 10-Q Item 2 MD&A
Management notes that elevated mortgage interest rates, higher housing costs, and general economic uncertainty have weakened consumer confidence, contributing to an 8% decline in closings and requiring elevated sales incentives that compressed home sale gross margin to 25.0% in Q2 FY2026 from 27.0% a year earlier.
Source: 10-Q Item 2 MD&A
The company continues to face pressure in land acquisition and development costs, and due to the length of land development and construction cycles, there is a lag before these cost changes are reflected in operating results, creating ongoing margin risk.
Source: 10-Q Item 2 MD&A
Pulte Mortgage's $625.0M master repurchase agreement matures in August 2026 and the company states there can be no assurance the agreement can be renewed or replaced on commercially reasonable terms, although it believes it has adequate liquidity to meet financing needs.
Source: 10-Q Item 2 MD&A Liquidity and Capital Resources
The West segment (including Las Vegas and Arizona) and Northeast segment experienced significant declines, with West income before income taxes down 56% and Northeast down 50% YoY in Q2 FY2026, indicating uneven regional demand that could disproportionately affect consolidated results if trends persist.
Source: 10-Q Item 2 MD&A
The company had $9.7 billion in remaining purchase price commitments under land option agreements at June 30, 2026, with $717.4M of outstanding deposits; a prolonged demand downturn could increase impairments or forfeited deposits, as evidenced by $27.6M of land-related charges in the first six months of FY2026.
Source: 10-Q Item 2 MD&A
Reported EPS of $2.48 versus the $2.39 analyst consensus — a +3.9% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.98B | $4.4B | -9.56% |
Cost of Revenue | $2.92B | $3.15B | -7.03% |
Net Income | $472M | $608.48M | -22.43% |
EPS (Basic) | $2.49 | $3.05 | -18.36% |
EPS (Diluted) | $2.48 | $3.03 | -18.15% |
SG&A Expense | $382.96M | $390.45M | -1.92% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $18.26B | $17.59B | +3.84% |
Total Liabilities | $5.25B | $5.01B | +4.72% |
Stockholders' Equity | $13.01B | $12.57B | +3.49% |
Cash & Equivalents | $1.34B | $1.23B | +8.23% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $176.8M | $421.73M | -58.08% |
Investing Cash FlowYTD | $-87.76M | $-39.18M | -123.98% |
Financing Cash FlowYTD | $-720.48M | $-768.9M | +6.30% |
Dividends PaidYTD | $101.82M | $90.08M | +13.04% |
Share BuybacksYTD | $681.17M | $600M | +13.53% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 11.9% | — | — |
ROE | 3.6% | — | — |
ROA | 2.6% | — | — |
Debt to Equity | $0.403 | — | — |
Expected release date, analyst estimates & what to watch
PulteGroup reported a challenging Q1 FY2026 with revenue declining 12.4% YoY to $3.41B and net income falling 33.6% to $347.0M, though the company maintained solid cash generation and a strong balance sheet with $1.81B in cash.
PulteGroup (PHM) reported FY2025 revenue of $17.3B, down 3.5% year-over-year, with net income falling 28.0% to $2.2B amid rising SG&A costs and a challenging housing market, though the balance sheet remained strong with minimal debt and growing cash.
Other companies in Homebuilding
The filing does not disclose analyst consensus estimates, so a beat/miss cannot be confirmed from this 10-Q. What is confirmed is that revenue fell 9.6% YoY to $3.98B and diluted EPS fell 18.2% YoY to $2.48, reflecting a challenging demand environment.
PulteGroup's home sale gross margin fell to 25.0% in Q2 FY2026 from 27.0% a year earlier, primarily due to elevated sales incentives, pricing actions taken to support demand, and rising land acquisition and development costs. Management noted the margin did improve sequentially from 24.4% in Q1 FY2026.
In the first six months of FY2026, PulteGroup repurchased $681.2M of shares (5.5 million shares) and declared $99.5M in cash dividends, after raising its quarterly dividend 18% from $0.22 to $0.26 per share effective January 2026. The company had $1.8B remaining under its share repurchase authorization as of June 30, 2026.
Key risks include persistent housing affordability challenges from elevated mortgage rates weighing on demand, rising land acquisition and development costs squeezing margins, and refinancing risk on Pulte Mortgage's $625.0M repurchase agreement maturing in August 2026. Regional weakness was also notable, with West segment pretax income down 56% YoY.
PulteGroup held $1.3B of unrestricted cash and had $1.4B available under its Revolving Credit Facility as of June 30, 2026, with total stockholders' equity of $13.0B, up 3.5% YoY. Its debt-to-total-capitalization ratio (excluding Financial Services debt) was 12.3%, slightly up from 11.2% at year-end 2025, indicating a conservative leverage profile.