Q1 2026 results snapshot
Taylor Morrison Home (TMHC) opened 2026 with Q1 revenue of US$1.4 billion and basic EPS of US$1.03, supported by net income of US$98.6 million. The trailing twelve months show revenue of US$7.6 billion and EPS of US$6.83. Over the past year, revenue has ranged from US$1.9 billion to US$2.4 billion per quarter and quarterly EPS has moved between US$1.03 and US$2.35. This sets a clear context for how current earnings fit within recent trading conditions. With net profit margin tighter over the last twelve months than the prior year, investors are likely to read these results through a margins lens, weighing how durable current profitability is.
See our full analysis for Taylor Morrison Home.With the latest numbers on the table, the next step is to see how they compare with the prevailing stories about Taylor Morrison Home, highlighting where the data supports those narratives and where it challenges them.
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Margins Under Pressure at 8.8%
- Trailing net profit margin is 8.8% on US$7.6b of revenue and US$667.7 million of net income, compared with 10.8% a year earlier. The company is currently earning a smaller share of each dollar of sales as profit than it did over the prior year.
- Consensus narrative points out that heavier use of spec homes and incentives can weigh on profitability, and the shift in the last 12 months lines up with that concern:
- Net income on a trailing basis is US$667.7 million versus US$906.5 million a year earlier, which fits with the idea that margins have come under pressure as product mix and incentives change.
- Analysts also expect margins to move from 9.6% today to 7.6% in three years, and the current 8.8% trailing margin already sits between those two points. This supports the more cautious part of the consensus view on profitability.
EPS Trend Versus Bullish Hopes
- On a trailing twelve month basis, basic EPS is US$6.83 compared with US$8.76 a year earlier, and quarterly EPS over the last year has moved between US$1.03 and US$2.35. The current US$1.03 in Q1 2026 sits at the low end of the recent range.
- Bulls argue that efficiency gains and a higher mix of move up and resort lifestyle buyers can support earnings over time, yet the recent EPS pattern is more muted than that story suggests:
- The bullish view refers to five year earnings growth of about 5.7% per year, while the latest trailing EPS of US$6.83 is below the prior trailing reading of US$8.76. This shows the most recent period is not following that longer trend.
- Bullish analysts also look for profit margins to rise from 10.2% to 10.6%, but the current trailing margin of 8.8% is below both figures, so recent results do not yet reflect the margin lift that more optimistic investors are counting on.
Valuation Gap Against Bear Concerns
- The trailing P/E is 9x at a share price of US$64.33, compared with an industry average of 12.4x and peer average of 21.3x. A DCF fair value of US$77.20 sits about 20% above the current price, so the stock trades at a discount on several measures.
- Bears focus on forecast declines in revenue of about 3.1% per year and earnings of about 5% per year over the next three years, yet the current valuation already prices the company below both DCF fair value and analyst target assumptions:
- Analysts use revenue projections that move from around US$8.1b on a trailing basis to US$6.8b by 2029, but even with those lower numbers they arrive at an implied P/E of 15.2x, versus the current 9x. The present multiple sits well below the level used in their long run models.
- The DCF fair value of US$77.20 and analyst price target reference of US$70.11 are both above the US$64.33 share price, so while bears highlight the pressured earnings outlook, the market price already reflects a discount relative to those valuation anchors.
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Taylor Morrison Home on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
With bulls and bears pulling in different directions, it helps to look past the headlines and test the numbers yourself while sentiment is still divided. To see how those concerns and bright spots balance out in one view, check the 2 key rewards and 1 important warning sign.
See What Else Is Out There
Recent results show margins easing from 10.8% to 8.8% and trailing EPS slipping from US$8.76 to US$6.83, so profitability looks under pressure.
If you are concerned about softer earnings and want ideas with stronger value support, check out the 54 high quality undervalued stocks that already screen for quality and pricing discipline.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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