KB Home stock dips as Zacks warns of sharp Q3 earnings decline

Published on 09/20/2026 at 13:14 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

KB Home stock is trading near USD 47 as of September 18, 2026, ahead of its fiscal third quarter earnings release on September 22, 2026. Zacks Research now expects Q3 EPS to drop 45.3 percent and revenue to fall 20.2 percent versus the prior year quarter.

KBH, US48666K1097, Illustration mit AI erstellt.

KB Home stock (ISIN US48666K1097) is trading around USD 47.07 on the New York Stock Exchange as of September 18, 2026, with investors bracing for a weaker fiscal third quarter and a recent Strong Sell rating from Zacks Research.

Q3 earnings expectations point to sharp declines

According to Ad-hoc-news on September 19, 2026, Zacks Research now expects KB Home to deliver adjusted earnings per share of USD 0.88 in its fiscal third quarter 2026, which would mark a 45.3 percent drop from the EPS of USD 1.61 recorded in the fiscal third quarter 2025 for the period ended August 31, 2025.

The same overview notes that consensus forecasts call for fiscal third quarter 2026 total revenue of USD 1.29 billion, implying a 20.2 percent decrease compared with the prior year quarter revenue of USD 1.61 billion.Ad-hoc-news For investors, the size of this expected revenue contraction is central to judging how demand for new homes is holding up in KB Home's core markets.

In addition, Zacks highlights that housing revenues for KB Home's fiscal third quarter 2026 are projected in a range of USD 1.20 billion to USD 1.35 billion, down from USD 1.61 billion in housing revenue reported a year earlier for the fiscal third quarter 2025.Ad-hoc-news That guidance suggests a potential drop of up to roughly USD 410 million in housing revenue versus the prior year quarter if results land toward the lower end of the range.

Zacks downgrade and earnings calendar raise risk focus

As Ad-hoc-news reports, Zacks Research currently assigns KB Home a Zacks Rank 5, corresponding to Strong Sell, and calculates an Earnings ESP of minus 5.32 percent for the upcoming release, a combination the firm views as making an earnings beat unlikely.

The same article indicates that KB Home is scheduled to release its fiscal third quarter 2026 results for the period ended August 31, 2026 after the market close on September 22, 2026, with management expected to update investors on revenue, earnings, deliveries and guidance for the remainder of the fiscal year ending November 30, 2026.Ad-hoc-news This date is also confirmed in a weekly earnings outlook from TradingKey dated September 20, 2026, which notes that KB Home will report third quarter fiscal 2026 financial results after the market close with market attention on new orders, deliveries, average selling prices, sales incentives and housing gross margins.

That focus on margins and incentives reflects the key risk around the upcoming figures: if KB Home has had to increase discounting to sustain sales, housing gross margins could compress further, amplifying the impact of lower volumes on profitability. For retail investors, the Zacks Strong Sell stance combined with expectations for double digit declines in both EPS and revenue underlines how sensitive sentiment is to any sign of weakening demand or falling margins in the US homebuilding sector.

KB Home stock price, valuation signals and volume

The latest available quote in the Ad-hoc-news overview shows KB Home stock at USD 47.07 on the NYSE as of September 18, 2026, at 14:12 local market time.Ad-hoc-news A separate earnings calendar snapshot from Investing.com dated September 19, 2026 lists KB Home at a last close of USD 47.12, with a move of minus 2.93 percent on the day and a prior close of USD 47.35, indicating a modest pullback ahead of the earnings release.

The same Investing.com entry shows KB Home's market capitalization at USD 2.98 billion as of September 19, 2026, giving investors a sense of the company's size within the US homebuilding segment.Investing.com Valuation commentary from Simply Wall St on September 19, 2026 points to an estimated fair value of USD 58.25 per share for KB Home versus a last close of USD 47.12, suggesting that some fundamental models see roughly 19 percent upside potential if earnings and cash flows develop as projected.

For now, however, the short term driver for KB Home stock remains the upcoming fiscal third quarter report on September 22, 2026. If delivered EPS and revenue come in better than the current consensus decline of 45.3 percent for EPS and 20.2 percent for revenue, and if housing margins hold up despite incentives, the stock could find support near current levels. Conversely, a miss versus these expectations or a weaker than anticipated guidance for the fiscal year ending November 30, 2026 would likely reinforce the cautious stance embodied in the Zacks Strong Sell rating.

Stock level ahead of earnings

KB Home stock most recently closed at approximately USD 47.12 on the NYSE as of September 19, 2026, leaving the homebuilder with a market capitalization of about USD 2.98 billion at that date in US dollars. With consensus pointing to steep year on year declines in both earnings per share and revenue for the fiscal third quarter 2026, the upcoming earnings release on September 22, 2026 will be crucial in determining whether KB Home stock can stabilize near this price level or whether further volatility lies ahead.