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D.R. Horton sees affordability pressures keeping home sales incentives elevated. The homebuilder reports a 20.7% home sales gross margin and expects mortgage rates and cautious consumer sentiment to keep incentives elevated through the fourth fiscal quarter. By Lesprom Network 10:27 AM / July 21, 2026 %s open RFQs from verified buyers. * D.R. Horton reported third-quarter net income fell 12% to $904.9 million and diluted EPS declined 5% to $3.20. D.R. Horton's third-quarter net income declined 12% to $904.9 million as affordability constraints and cautious consumer sentiment continued to affect new home demand. Diluted earnings per share fell 5% to $3.20, while consolidated revenue totaled $9.2 billion and the consolidated pre-tax profit margin was 13.3%, according to D.R. Horton. Home sales revenue increased 1% to $8.7 billion as closings rose 4% to 23,983 homes. The company recorded a 20.7% home sales gross margin, while homebuilding pre-tax income declined 10% to $1.1 billion and the homebuilding pre-tax profit margin was 12.3%. Management said its teams are balancing sales pace, pricing, incentives and inventory levels in each community. The company expects sales incentives to remain elevated during the fourth fiscal quarter, with incentive levels dependent on demand, mortgage rates and other market conditions. Third-quarter net sales orders totaled 23,084 homes with an order value of $8.4 billion, while the cancellation rate increased to 20% from 17% a year earlier. At June 30, D.R. Horton had 38,000 homes in inventory, including 23,300 unsold homes. Of the unsold homes, 7,600 were completed, including 600 that had been completed for more than six months. The company maintained its fiscal 2026 guidance for consolidated revenue of $32.5 billion to $33.0 billion and homebuilding closings of 83,800 to 84,300 homes. It also continues to expect operating cash flow of at least $3.0 billion, share repurchases of approximately $2.5 billion and dividend payments of approximately $500 million.

D.R. Horton (DHI) Q3 2026 preview: EPS Est. $2.99, Reports July 21. Take 30% off with Kohl's Card. 6/11-6/21 Shop Now Wall Street expects a modest pullback. Analysts are forecasting D.R. Horton to report earnings of $2.99 per share on revenue of $9.17 billion when the natio... AlphaStreet Newsdesk powered by AlphaStreet Intelligence DHI | EPS Est $2.99 (12 analysts) | Rev Est $9.17B | Reports 2026-07-21 BMO Wall Street expects a modest pullback. Analysts are forecasting D.R. Horton to report earnings of $2.99 per share on revenue of $9.17 billion when the nation's largest homebuilder releases its fiscal third-quarter 2026 results on July 21st before the opening bell. Twelve analysts contributed to the consensus, with EPS estimates spanning a relatively tight range from $2.87 to $3.05 and revenue projections between $9.02 billion and $9.29 billion. Discover more Investment strategy guides Portfolio tracking software Estimate revisions show recent stability after earlier optimism. Analyst expectations have held steady over the past month, with the EPS consensus unchanged from $2.99. The longer view reveals more interesting dynamics: over the past 90 days, analysts have raised their earnings estimates by 4.9% from $2.85, suggesting growing confidence in the company's ability to navigate the homebuilding environment as the quarter progressed. This upward revision trajectory indicates Street analysts have become more constructive on D.R. Horton's execution even as they anticipate year-over-year declines. Year-over-year comparisons point to a challenging backdrop. The consensus figures represent a 11% decline in earnings per share from the $3.36 posted in the third quarter of fiscal 2025, while revenue is expected to contract 0.6% from the prior-year period's $9.2 billion. The anticipated revenue decline suggests either lower home closings, reduced average selling prices, or a combination of both as the residential construction sector navigates affordability challenges and fluctuating mortgage rate environments. Profitability metrics will be critical to assess. Investors will scrutinize whether the company has successfully managed construction costs, land acquisition efficiency, and pricing discipline to preserve profitability. The homebuilder's scale advantages and operational leverage have historically enabled it to weather cyclical pressures better than smaller competitors, making margin performance a key indicator of competitive positioning. The stock sits near the middle of its recent range. Trading at $154.15, D.R. Horton shares head into the report after navigating a year of volatility tied to interest rate expectations and housing market sentiment. The positioning reflects investor uncertainty about the pace of housing demand recovery and whether affordability constraints will continue pressuring transaction volumes across the industry. Stocks & Bonds Track record matters for a cyclical name. D.R. Horton's history of meeting or exceeding Wall Street expectations has been an important consideration for investors in the homebuilding sector, where quarterly results can swing based on closing timing, incentive levels, and regional market variations. The company's ability to consistently deliver on guidance has supported its premium valuation relative to peers, making any deviation from expectations particularly significant for the stock's reaction. What to Watch: Focus on home closings volume and average selling prices to understand the revenue decline's composition. Gross margin performance will signal whether the company is maintaining pricing power or resorting to incentives to move inventory. Commentary on order trends, cancellation rates, and the months of supply in inventory will provide critical insight into demand momentum heading into the fiscal fourth quarter. Management's outlook on mortgage rate sensitivity and buyer traffic patterns will help investors gauge whether the housing market is stabilizing or facing extended headwinds. Finally, listen for updates on land acquisition strategy and community count, which drive the company's medium-term growth trajectory. This content is for informational purposes only and should not be considered investment advice. AlphaStreet Intelligence analyzes financial data using AI to deliver fast and accurate market information. Human editors verify content. Discover more Company Earnings Dividend information service Business News

D.R. Horton is defying the housing gloom. July 4, 2026 Key points. * D.R. Horton beat earnings expectations in its second fiscal quarter, posting $7.6 billion in revenue and raising its full-year revenue guidance above analyst estimates. * Net sales orders rose 11% to 24,992 homes, and the company returned more than $1 billion to shareholders through buybacks and dividends during the quarter. * Analysts maintain a consensus Hold rating on DHI with an average price target of $168.54, implying roughly 7% upside amid persistent affordability and margin headwinds. * MarketBeat previews the top five stocks to own by August 1st. As the most prolific homebuilder in the United States, D.R. Horton NYSE: DHI is battling a general market decline in new home sales and skittish buyers. D.R. Horton today. D.R. Horton $158.45 -0.12 (-0.07%) As of 07/2/2026 03:59 PM Eastern * 52-Week Range - $129.11 | $184.54 * Dividend Yield - 1.14% * P/E Ratio - 14.85 * Price Target - $168.54 Yet investors might not know that from its financial performance. For the latest quarter, the company beat expectations, raised its revenue outlook, increased new home orders by double digits, and returned more than $1 billion to shareholders. Discover more Corporate & Financial Crime Stock Market Holidays Premium Stock Reports That's not to suggest the company is immune to industry headwinds. Analysts rate the stock a Hold with limited 12-month upside. But for patient investors, the disconnect between homebuyer reticence and the company's results is something to consider before deciding to act. Building its business around affordable homes. D.R. Horton has been building homes for Americans since 1978, and over those decades has become the largest homebuilder in the United States by volume, with operations spanning 125 markets across 35 states. Its strategic focus on entry-level and first-time buyer homes gives it some insulation against luxury-home volatility. When mortgage rates rise, and discretionary buyers step back, affordably priced starter homes tend to hold their ground longest. Like other homebuilders in the construction sector, sales took off in late 2020 as interest rates sat at record lows and work-from-home drove many buyers into the market. But that's not been the recent story. Monthly new home sales are down roughly 30% from that earlier peak and currently at their lowest levels since 2023. Strong quarterly results defy a weak housing market. The current trend is what makes D.R. Horton's second fiscal quarter ended March 31 so interesting. It was the clearest recent evidence of what the company's positioning produces under pressure. The company reported that for the three months, it generated $7.6 billion of consolidated revenue, above analysts' expectations, and $647.9 million of net income, or $2.24 per diluted share. Its pre-tax profit margin was 11.5%. Although beating expectations, revenue for the period declined slightly from year-earlier levels as home prices and incentives reflected higher mortgage rates. "Affordability constraints and cautious consumer sentiment continue to impact new home demand," the company said. Underlying demand, though, was unmistakably positive. Net sales orders rose 11% to 24,992 homes, with an order value of $9.2 billion. Backlog grew to 16,882 homes worth $6.4 billion at quarter-end. With orders and backlog likely indicators of sales moving forward, both moved in the right direction. Orders and inventory point to future strength. The details inside the numbers were also telling. Homes closed during the quarter rose 1% to 19,486 even as revenue in the overall homebuilding sector, hit by buyer incentives, declined 2% to $7.1 billion. The company also collected nearly $800 million in revenue during the quarter from rental operations, financial services, and the sale of ready-to-build lots for homebuilders. Inventory also improved. Unsold completed homes fell by 35% from a year ago. And the cancellation rate held flat at 16%, consistent with prior periods and far below the levels that would indicate buyer panic. Given these figures, the company updated its full-year revenue guidance to a range of $33.5 billion to $34.5 billion with the number of homes sold between 86,000 and 87,500, an outlook that came in above analyst expectations even after the range was narrowed. By comparison, for fiscal 2025, the company sold 84,863 homes, a 5% decline. Shareholder returns reflect financial confidence. These days, the stock reflects a recognition of the company's performance without a confident exuberance about its near-term prospects. DHI recently traded near $159, up 12% over the past three months. The trailing price-to-earnings ratio of 14.7 is slightly above that of others in the sector. D.R. Horton, inc. (DHI) price chart for saturday, july, 4, 2026. During the second quarter alone, D.R. Horton repurchased 6 million shares for $950.6 million and paid $130 million in dividends, exiting the period with total liquidity of $6 billion and debt to total capital of just 21.7%. Subsequent to quarter-end, the board also declared another quarterly dividend of 45 cents per share, generating a yield of roughly 1.1%. The company reaffirmed plans for $2.5 billion in share repurchases and roughly $500 million in dividend payments for fiscal 2026. Analysts expect only limited near-term upside. Analyst sentiment is measured rather than overly enthusiastic. Of the 16 analysts following the stock, the consensus rating is a Hold, with four recommendations to Buy, 10 suggest Hold, and two list it as a Sell. With an average price target of $168.54, the 12-month target implies an approximate 6% rise. Much of the sector already enjoyed a short rally following congressional passage of an affordable housing bill, a reminder of how sensitive it can be to news. Housing headwinds still pose meaningful risks. The bear case is easy to see, and the reason the stock is priced the way it is. Affordability remains the central issue pressing new home demand. Sales incentives are expected to remain elevated through fiscal 2026, thereby compressing margins and limiting earnings. As seen in the second quarter, home sales revenue declined even as closings ticked up. The competitive landscape adds to concern. Among homebuilders, Lennar NYSE: LEN targets similar buyers, while PulteGroup NYSE: PHM, NVR NYSE: NVR, and Toll Brothers NYSE: TOL target substantially different segments. Further, the existing home market could loosen and draw away buyers if mortgage rates decline. A quality builder in an uncertain market. For investors, the question is whether to treat D.R. Horton as part of the speculative homebuilding sector or a high-quality commodity producer. With its ability to generate cash, maintain a clean balance sheet, and return capital to shareholders, the company has proven to weather the cycles. But the macro environment is hard to foretell. A further economic slowdown and higher unemployment could seriously pinch buyers' budgets and clamp down on home sales. The future of interest rates is a determining factor. Either way, D.R. Horton has earned the right to be taken seriously even in a market that has not yet decided what to make of it. Before you consider D.R. Horton, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and D.R. Horton wasn't on the list. While D.R. Horton currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. Enter your email address and we'll send you MarketBeat's list of ten stocks set to soar in Summer 2026, despite the threat of tariffs and what's happening in Iran. These ten stocks are incredibly resilient and are likely to thrive in any economic environment. Contributing author. Companies mentioned in this article. | Company | MarketRank(TM) | Current Price | Price Change | Dividend Yield | P/E Ratio | Consensus Rating | Consensus Price Target | | D.R. Horton (DHI) | 4.3921 of 5 stars | $158.45 | -0.1% | 1.14% | 14.85 | Hold | $168.54 |