Watch for further margin erosion in Q4 as affordability challenges persist and the elevated cancellation rate (21%) suggests demand softening. The backlog dollar value growth (+4%) is decelerating from Q2 (+5%), signaling potential revenue pressure in coming quarters.
Price Chart
Executive Summary
NVR reported Q3 2026 EPS of $89.45, a 12.3% miss vs consensus of $102.02, and revenue of $2.40B in line with estimates. Consolidated revenue fell 8% YoY, homebuilding gross margin compressed to 18.3% from 21.0%, and new orders dropped 7% with cancellations rising to 21%. This marks the third consecutive quarterly miss, with persistent affordability headwinds and land cost inflation pressuring results.
Key Financial Metrics
Key Facts
- Q3 2026 diluted EPS $89.45 vs consensus $102.02 (-12.3% miss)
- Q3 2026 consolidated revenue $2.40B vs consensus $2.40B (in line)
- Revenue declined 8% YoY from $2.61B; net income fell 27% YoY to $248.6M
- Homebuilding gross margin fell to 18.3% from 21.0% YoY, pressured by $24.8M land deposit impairments
- New orders dropped 7% YoY to 4,391 units; cancellation rate rose to 21% from 19%
- Backlog units up 10% YoY to 10,121 but average backlog price declined 5.5% to $453,000
- Third consecutive quarterly EPS miss (Q1 -13.4%, Q2 -11.5%, Q3 -12.3%)
- Share repurchases continued: $237M in Q3, $1.23B YTD
Financial Impact
EPS miss of $12.57 vs consensus; revenue in line; gross margin compression of 270bps YoY; $24.8M in land deposit impairments
Risk Factors
- Continued homebuilding gross margin compression from higher lot costs and pricing pressure
- Rising cancellation rates (21% vs 19% last year) indicate weakening consumer demand
- Third consecutive EPS miss erodes credibility and could lead to further estimate cuts
- Average selling prices declining across both new orders (-5%) and settlements (-2%)
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000906163-26-000099 |
| Document: nvr-20261022.htm | 0000906163-26-000099 |
| Document: 0000906163-26-000099-index-headers.html | 0000906163-26-000099 |
| Document: 0000906163-26-000099-index.html | 0000906163-26-000099 |
| Document: 0000906163-26-000099.txt | 0000906163-26-000099 |
| 8-K Data (Synthetic) | 0000906163-26-000099 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 4d ago | Institutional Cluster | $5,983.68 $5,727.77 | ▼ −4.28% | ▼ −4.99% | $5,806.02 (−2.97%) |
Oct 22, 2026 5d ago | 8-K | $6,110.63 $5,983.68 | ▲ +2.08% | ▲ +1.56% | $5,806.02 (+4.98%) |
Oct 22, 2026 5d ago | Press Release | $6,110.63 $5,983.68 | ▲ +2.08% | ▲ +1.56% | $5,806.02 (+4.98%) |
Sep 15, 2026 6w ago | Court Ruling | $6,257.45 $6,186.43 | ▼ −1.14% | ▼ −0.69% | $5,806.02 (−7.21%) |
Aug 19, 2026 10w ago | Court Ruling | $6,418.86 $6,300.00 | ▼ −1.85% | ▼ −1.01% | $5,806.02 (−9.55%) |
Aug 11, 2026 11w ago | Insider Buy | $6,429.96 $6,293.95 | ▼ −2.12% | ▼ −2.37% | $5,806.02 (−9.70%) |
Jul 23, 2026 13w ago | 8-K | $6,155.02 $6,414.67 | ▼ −4.22% | ▼ −4.12% | $5,806.02 (+5.67%) |
May 15, 2026 23w ago | 8-K | $5,712.11 $5,750.57 | ▲ +0.67% | ▲ +1.32% | $5,806.02 (+1.64%) |
Apr 22, 2026 26w ago | 8-K | $6,563.05 $6,619.29 | ▼ −0.86% | ▼ −1.25% | $5,806.02 (+11.53%) |
Mar 17, 2026 32w ago | DEFA14A | $6,565.98 $6,436.69 | ▼ −1.97% | ▼ −0.57% | $5,806.02 (−11.57%) |
US Market Status
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