KB Home's stock plummeted 5.20% in after-hours trading following the release of its fiscal fourth-quarter results, which showed declines in both earnings and revenue compared to the previous year.

The homebuilder reported adjusted net income of $1.92 per diluted share, down from $2.53 a year earlier, while revenue fell to $1.69 billion from $2.0 billion. Despite beating some analyst expectations, the company faced challenging market conditions, including lower consumer confidence and elevated mortgage rates, which impacted home deliveries and average selling prices. Additionally, increased expenses, such as higher land costs and accelerated equity-based compensation, weighed on margins.

Investors reacted negatively to the results, driving the stock lower in extended trading. The company's outlook for fiscal 2026, which includes a wide range of housing revenue expectations ($5.10 billion to $6.10 billion), also contributed to the uncertainty.