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Today's Featured News
Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales TankReported by Leo Miller. Published: 4/27/2026. 
Key Points
- Homebuilding funds like the SPDR S&P Homebuilders ETF have seen very weak performance for well more than year.
- In the latest round of homebuilder earnings, D.R. Horton impressed, beating estimates on EPS and seeing a solid order increase.
- Pulte and NVR saw sales and EPS take big hits, but analysts are eyeing meaningful recoveries in these names.
- Special Report: Elon Musk already made me a “wealthy man”
Homebuilders have been going through a rough patch lately. Across leading homebuilding stocks, analysts expected revenues and earnings to fall sharply in Q1 2026, and that is exactly what happened. For more than a year, stocks in this industry have traded in a range. The SPDR S&P Homebuilders ETF (NYSEARCA: XHB) is a commonly used proxy for the sector, tracking the performance of more than 30 homebuilders and housing-related stocks. The fund has delivered an approximate total return of just 5% since the start of 2025. With interest rates still relatively high and housing affordability still low, stocks in this space have struggled to gain much momentum.
Three of the top U.S. homebuilders just reported earnings; here’s how they stacked up and what that signals for the industry going forward. Pulte’s EPS Falls 30%, Analysts Point to Moderate UpsidePulte Group (NYSE: PHM) is one of the more diversified U.S. homebuilders, targeting a balanced mix of market segments. In Q1, 38% of the company’s sales came from first-time buyers, while “move-up” buyers accounted for 39%. Its “active adult” buyer group, which includes sales in 55+ communities, made up 23% of sales. Pulte saw sales fall 12% year over year (YOY) to $3.41 billion, essentially in line with estimates. The decline came even as the company offered much larger incentives to home buyers. That led to a significant 310-basis-point compression in gross home sales margin. As a result, adjusted earnings per share (EPS) fell by just over 30% to $1.79, 1 cent short of estimates. The company’s new orders grew moderately by 3% YOY, similar to the 4% increase seen in Q4 2025, but Pulte did not change its full-year guidance. Still, Pulte posted a modest 2.4% gain after its report, indicating the results were better than some investors had feared. Several analysts tracked by MarketBeat raised their price targets after the report, with updates averaging around $147. That figure implies solid upside in the shares and is slightly above the MarketBeat consensus price target of around $141. D.R. Horton Outperforms Against Low Expectations, Targets SpreadHomebuilding behemoth D.R. Horton (NYSE: DHI) was a clear standout. The company, which focuses on first-time home buyers, posted revenue of $7.56 billion. That marked a modest 2% YOY decline, roughly in line with expectations and by far the best result among this group. The firm also posted a solid bottom-line beat, with adjusted EPS of $2.24 versus estimates of $2.15. The figure fell 13% YOY. Forward-looking metrics were particularly strong, with home orders rising 11% YOY, the highest rate among these names. The company did slightly lower the top end of its full-year guidance to $34.5 billion, but its midpoint estimate of $34 billion still exceeded estimates. D.R. Horton also saw notable margin compression, with the firm’s adjusted home sales gross margin declining 230 basis points to 19.7%. Overall, these results allowed DHI shares to soar by nearly 6% after earnings. The MarketBeat consensus price target near $169 implies only about 5% upside in the shares. Notably, all analysts who issued updates after the report raised their price targets; however, the updated targets averaged around $165. They also showed significant variance, ranging from $206 to $123. Those figures imply upside of more than 25% and downside of more than 20%, respectively. NVR: Sales Plummet, Order Growth Ticks UpNVR (NYSE: NVR) sits more in the middle of the market, with its average home selling price coming in at $457,000 in Q1 2026. That was squarely between Pulte’s $542,000 average selling price and D.R. Horton’s $362,000, reflecting differences in the income levels of their respective customers. The company saw revenues take a 21.7% hit, falling to $1.91 billion. That significantly missed estimates of $2.09 billion. EPS fell 28.6% to $67.76, missing estimates of $79.97 by a wide margin. The company’s gross margin compression mirrored D.R. Horton, with the figure falling 230 basis points to 19.6%. However, like the other two names, new orders increased moderately, rising 7%. That was an improvement over the 4% increase in the prior quarter. NVR’s average selling price remained flat YOY, while the metric fell 3% at Pulte and 5% at D.R. Horton. Combined with rising orders, this is a positive sign for NVR, showing the company is not compromising on price to drive demand. Notably, NVR does not provide forward guidance. Shares fell 4.7% following the results. Multiple analysts lowered their targets after the report, with updates averaging approximately $7,465, moderately below the consensus target near $7,650. This updated average target implies just under 15% upside in the shares. Homebuilders Continue to Face a Difficult EnvironmentEarnings across these three names showed a consistent trend: revenue declines and margin pressure across the industry. D.R. Horton was a bright spot, with the smallest sales decline and the strongest order growth. Encouragingly, orders rose across all names, but the industry is still stuck in a rut. Price targets remain relatively subdued, but they still point to upside ahead, suggesting a degree of optimism among analysts. Fixed rates on 30-year mortgages briefly fell below 6% before the conflict in the Middle East. Rates have since moved back to 6.2%. A clear end to the conflict would be a meaningful positive for homebuilders, likely helping rates approach 6% again and improving demand. |
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