KB Home Revenue Tops Estimates, Shares Jump as West Coast Strength Offsets Broader Decline

KB Home (NYSE: KBH) posted second-quarter revenue of $1.11 billion, exceeding the consensus estimate of $1.09 billion, according to data compiled by AlphaStreet. Benzinga reported that the revenue figure also beat its own estimate of $1.10 billion. Earnings came in at $0.43 per diluted share, missing the $0.45 consensus forecast by approximately 4%.

Net income for the quarter was $27.3 million. The company delivered 2,395 homes and ended the quarter with 4,526 homes in backlog.

Revenue fell 27% compared with $1.53 billion in the same period last year. Earnings per share dropped 71% year over year.

"The West Coast segment provided a bright spot," AlphaStreet reported, generating $766.9 million in revenue, up 5.3% from a year earlier. That growth stood in contrast to the overall decline, highlighting divergence across KB Home’s geographic markets.

Shares rose 16.3% to $61.32 in Wednesday trading, according to Benzinga, which also noted a 16.2% gain in a separate report. AlphaStreet had reported a 1.9% premarket advance.

**Guidance Points to Stabilization**

KB Home expects housing revenue of $1.20 billion to $1.35 billion in the third quarter, with a midpoint of $1.28 billion representing a sequential increase from the second quarter’s $1.11 billion. The company also guided for full-year 2026 housing revenue of $4.90 billion to $5.30 billion, according to Benzinga.

“We produced solid second-quarter results that met or exceeded the mid-point of our key guidance ranges,” said Jeffrey Mezger, executive chairman, as reported by Benzinga.

**Analyst Reaction and Sentiment**

Following the earnings release, UBS analyst John Lovallo maintained a Buy rating on KB Home and raised the price target from $63 to $66, Benzinga reported. Wells Fargo analyst Sam Reid kept an Underweight rating but increased the target from $50 to $52.

Wall Street consensus on the stock remains cautious. AlphaStreet reported that the analyst ratings distribution stands at 3 buys, 13 holds, and 7 sells — a decidedly negative skew with sell ratings outnumbering buys by more than two to one.

Investors will watch whether KB Home can convert its third-quarter revenue guidance into actual deliveries amid the sharp year-over-year declines. The strength in the West Coast region may offer a base for recovery, but significant weakness in other markets continues to weigh on overall performance.