Lennar (LEN) Stock: Q2 Revenue Misses as Housing Headwinds Persist

TLDR

• Lennar’s Q2 revenue came in at $7.9 billion, missing Wall Street’s estimate of ~$8.1 billion
• Earnings per share were $1.24 ($1.31 adjusted), roughly in line with expectations
• Home sales gross margin fell to 15.6%, down from 17.8% a year ago
• Lennar cut its full-year 2026 delivery target to 82,000–83,000 homes, down from 85,000
• The stock slipped ~1.2% in Friday premarket after surging 5.7% in Thursday’s session

Lennar missed Wall Street’s revenue target in its second quarter, as the housing market continued to struggle with high mortgage rates and weak buyer demand.

The homebuilder reported $7.9 billion in total revenue for the quarter ending May 31, 2026, falling short of the roughly $8.1 billion analysts had expected. The stock was down around 1.2% in Friday premarket trading, after jumping 5.7% in Thursday’s regular session.

Earnings came in at $1.24 per diluted share on a reported basis, or $1.31 when excluding mark-to-market losses on technology investments. The adjusted figure narrowly topped the $1.25 consensus estimate.

Lennar Corporation, LEN

The average home sold for $371,000 in the quarter, a 5% drop from $389,000 in the same period last year. To keep homes moving, Lennar offered 12.9% in buyer incentives.

Gross margin on home sales contracted to 15.6% from 17.8% a year ago. Reduced revenue per square foot and elevated land costs were the main drags, though some savings on construction helped cushion the impact.

Quarterly deliveries reached 20,519 homes, up 2% from the prior quarter. But new orders fell 4% year over year to 21,749 homes.

Net earnings dropped sharply — $305 million versus $477 million in the same quarter last year.

Full-Year Target Gets Trimmed

Lennar cut its full-year 2026 home delivery target to 82,000–83,000 homes, down from a prior target of around 85,000. The company pointed to persistent interest rate pressure and geopolitical uncertainty as the reasons.

Revenue from home sales was down 2% compared to the same quarter a year earlier.

Q3 Guidance

For Q3, Lennar guided for 20,500 to 21,500 home closings at an average price of $375,000 to $380,000. Gross margin on home sales is expected to recover to around 16%.

During the quarter, Lennar bought back $447 million worth of stock, covering 5 million shares. The company ended the period with $1.8 billion in homebuilding cash and its $3.1 billion revolving credit facility fully undrawn.

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