Lennar Stock Dives As Q1 Revenue Disappoints — CEO Flags ‘Housing Shortage In America Has Not Been Solved’

• Revenues from home sales, the biggest contributor to its total revenue, decreased 13% in the first quarter of 2026 to $6.3 billion from $7.2 billion in the first quarter of 2025.
• Lennar delivered 16,863 new homes in the first quarter of 2026, compared to 17,834 homes in the first quarter of 2025.
• Lennar expects to deliver approximately 20,000 to 21,000 homes in Q2.

Homebuilder Lennar (LEN) shares fell 2% in extended hours of trading on Thursday after it reported a 13% decline in its first-quarter (Q1) revenue. 

Revenues from home sales, the biggest contributor to its total revenue, decreased 13% in Q1 2026 to $6.3 billion from $7.2 billion in Q1 2025. The decline was primarily due to an 8% decrease in the average sales price of homes delivered and a 5% decrease in the number of home deliveries. 

Q1 2026 Snapshot

Lennar delivered 16,863 new homes in Q1 2026, compared to 17,834 homes in the same period of the previous year. The average sales price of homes delivered was $374,000 in the quarter, compared to $408,000 from the year-ago period. 

The decrease in average sales price of homes delivered was primarily due to continued weakness in the market, and an increased use of sales incentives offered to homebuyers. 

During Q1 2026, gross margins also decreased, primarily due to lower revenue per square foot and higher land costs year-over-year, which were partially offset by a decrease in construction costs, reflecting the company's continued focus on cost-saving initiatives.

Outlook

Lennar expects to deliver approximately 20,000 to 21,000 homes in the second quarter with gross margin improving to 15.5% to 16% and SG&A improving to 8.9% to 9.1%, as volume increases and the spring selling season unfolds.

Housing Shortage Persists

"Our first quarter of fiscal year 2026 was defined by the same persistent headwinds that have challenged the housing market for over three years — high mortgage rates, constrained affordability, cautious consumer sentiment, and geopolitical uncertainty, especially now including the recent conflict in Iran,” said Stuart Miller, Executive Chairman and Chief Executive Officer of Lennar.

"While the broader market remains challenged in the near term, exacerbated by current events, we are continuing to operate with conviction and clarity. The fundamental shortage of housing in America has not been solved — demand is real, deferred, and building,” Miller added. 

Retail Reaction

Retail sentiment around LEN shares trended in ‘extremely bullish’ territory amid ‘high’ message volume.

Shares in the company have fallen 12% so far in 2026. 

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