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Andra AP fonden grew its position in D.R. Horton, Inc. (NYSE:DHI – Free Report) by 85.5% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 26,900 shares of the construction company’s stock after purchasing an additional 12,400 shares during the period. Andra AP fonden’s holdings in D.R. Horton were worth $3,691,000 at the end of the most recent reporting period.
A number of other hedge funds and other institutional investors also recently made changes to their positions in DHI. First Manhattan CO. LLC. increased its position in shares of D.R. Horton by 2.0% in the 4th quarter. First Manhattan CO. LLC. now owns 3,546 shares of the construction company’s stock valued at $511,000 after buying an additional 70 shares in the last quarter. Deseret Mutual Benefit Administrators lifted its holdings in D.R. Horton by 11.0% during the fourth quarter. Deseret Mutual Benefit Administrators now owns 716 shares of the construction company’s stock worth $103,000 after acquiring an additional 71 shares in the last quarter. Cornerstone Planning Group LLC grew its stake in D.R. Horton by 27.9% in the first quarter. Cornerstone Planning Group LLC now owns 330 shares of the construction company’s stock valued at $48,000 after acquiring an additional 72 shares during the period. AMG National Trust Bank grew its stake in D.R. Horton by 0.7% in the fourth quarter. AMG National Trust Bank now owns 10,899 shares of the construction company’s stock valued at $1,570,000 after acquiring an additional 74 shares during the period. Finally, AdvisorShares Investments LLC increased its holdings in shares of D.R. Horton by 2.4% in the fourth quarter. AdvisorShares Investments LLC now owns 3,336 shares of the construction company’s stock worth $480,000 after acquiring an additional 77 shares in the last quarter. 90.63% of the stock is owned by institutional investors.
Wall Street Analyst Weigh In Several equities analysts have recently weighed in on the company. Truist Financial lifted their price objective on D.R. Horton from $140.00 to $150.00 and gave the company a “hold” rating in a report on Wednesday, April 22nd. Wells Fargo & Company increased their target price on D.R. Horton from $147.00 to $170.00 and gave the stock an “equal weight” rating in a research note on Wednesday, April 22nd. Barclays raised their target price on shares of D.R. Horton from $140.00 to $141.00 and gave the stock an “equal weight” rating in a report on Tuesday, July 14th. Citigroup reaffirmed a “neutral” rating on shares of D.R. Horton in a research note on Wednesday. Finally, Zacks Research upgraded shares of D.R. Horton from a “strong sell” rating to a “hold” rating in a report on Friday, March 27th. Five research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat, D.R. Horton presently has an average rating of “Hold” and a consensus price target of $168.17.
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Key D.R. Horton News Here are the key news stories impacting D.R. Horton this week:
Positive Sentiment: D.R. Horton beat fiscal Q3 estimates, posting $3.20 EPS on $9.23 billion in revenue, which came in above Wall Street expectations and showed the business is still generating strong cash flow and home closings. Positive Sentiment: Analysts at some firms raised their forecasts after the results, suggesting the quarter was better than feared and that valuation still offers some support for the stock. Article Title Neutral Sentiment: Keefe, Bruyette & Woods lowered its price target to $167 from $175 but kept a market perform rating, while RBC nudged its target to $125 and maintained an underperform view, reinforcing a mixed analyst read on the stock. Neutral Sentiment: Commentary around the quarter emphasized affordability, inventory discipline, and ongoing mortgage-rate uncertainty, which suggests D.R. Horton is still navigating a challenging housing backdrop rather than seeing a clean demand recovery. Article Title Negative Sentiment: Management cut full-year revenue and home-closing guidance, and multiple headlines pointed to margin pressure from incentives and tariffs, which is weighing on investor sentiment despite the earnings beat. Article Title Negative Sentiment: Several reports noted that buyers are still hesitating and that the outlook remains sluggish, keeping pressure on shares as the market questions how quickly demand can improve. Article Title D.R. Horton Stock Performance Shares of DHI opened at $142.24 on Thursday. The stock has a market capitalization of $40.34 billion, a price-to-earnings ratio of 13.53, a PEG ratio of 2.01 and a beta of 1.36. D.R. Horton, Inc. has a 12 month low of $131.75 and a 12 month high of $184.54. The firm has a fifty day simple moving average of $150.57 and a 200 day simple moving average of $150.42. The company has a current ratio of 2.64, a quick ratio of 0.97 and a debt-to-equity ratio of 0.27.
D.R. Horton (NYSE:DHI – Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The construction company reported $3.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.02 by $0.18. D.R. Horton had a net margin of 9.15% and a return on equity of 12.47%. The firm had revenue of $9.23 billion for the quarter, compared to analyst estimates of $9.10 billion. During the same period in the previous year, the business earned $3.36 EPS. The company’s revenue was up .0% compared to the same quarter last year. Research analysts forecast that D.R. Horton, Inc. will post 10.6 EPS for the current fiscal year.
D.R. Horton Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, August 13th. Investors of record on Thursday, August 6th will be given a dividend of $0.45 per share. The ex-dividend date of this dividend is Thursday, August 6th. This represents a $1.80 annualized dividend and a yield of 1.3%. D.R. Horton’s dividend payout ratio is 17.13%.
About D.R. Horton (Free Report)
D.R. Horton, Inc is a national homebuilding company that designs, constructs and sells new residential properties across the United States. The company’s core operations focus on building single-family detached homes, townhomes and condominiums for a range of buyer segments. In addition to home construction and sales, D.R. Horton provides complementary services through subsidiaries that support the mortgage, title and closing processes for its customers, enabling integrated transaction workflows from inventory development to home delivery.
Founded in 1978 by Donald R.
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D.R. Horton is upgraded from sell to hold as execution offsets weak demand and valuation concerns. Orders per community are declining, cancellations are rising, and management has lowered FY2026 guidance, highlighting ongoing demand softness. DHI's inventory management, reduced construction costs, and controlled-lot strategy are mitigating margin and balance sheet risks.
Earnings came in at $3.20 per share, beating the analyst consensus estimate of $3.06. Revenue increased to $9.23 billion from a year earlier, exceeding analysts’ expectations of $9.18 billion.
D.R. Horton lowered its fiscal 2026 revenue outlook to $32.5 billion to $33.0 billion from its prior forecast of $33.5 billion to $34.5 billion. The new range is below the analyst consensus estimate of $33.66 billion.
The company also reduced its homebuilding closing forecast to 83,800 to 84,300 homes from its previous guidance of 86,000 to 87,500 homes.
D.R. Horton shares fell 0.7% to trade at $142.50 on Wednesday.
These analysts made changes to their price targets on D.R. Horton following earnings announcement.
RBC Capital analyst Mike Dahl maintained the stock with an Underperform rating and raised the price target from $123 to $125. Evercore ISI Group analyst Stephen Kim maintained the stock with an In-Line rating and raised the price target from $171 to $177. Considering buying DHI stock? Here’s what analysts think:
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Key Takeaways D.R. Horton trades at 12.3X forward earnings, with valuation supportive but not a deep homebuilding bargain.DHI returned capital through buybacks and dividends while maintaining $6.1 billion in liquidity.D.R. Horton cut fiscal 2026 revenue and homebuilding closings guidance amid affordability pressures. D.R. Horton, Inc. (DHI - Free Report) presents a restrained investment case rather than a clean buy signal. The homebuilder is still producing cash, supporting shareholders and managing inventory carefully.
The question is whether those strengths are enough while earnings growth softens. Valuation helps, but lower margins, higher cancellations and reduced fiscal 2026 guidance keep the setup mixed.
DHI Valuation Looks MeasuredDHI trades at 12.3X forward 12-month earnings. That is above the Zacks sub-industry multiple of 10.9X, but below the Zacks sector at 20.2X and the S&P 500 at 20.7X.
The valuation does not screen as stretched against the broader market. It also does not show a deep bargain within homebuilding, where investors remain focused on affordability, incentives and sales pace.
The $151 price target implies limited upside from the recent stock price of $143.92. That makes valuation a supportive part of the DHI case, not a stand-alone reason to buy aggressively.
D.R. Horton Still Returns Big CashD.R. Horton ended June 30, 2026, with consolidated liquidity of $6.1 billion, including $2.13 billion of cash, cash equivalents and restricted cash and $4 billion of available credit facility capacity. Debt to total capital was 23.0%, which supports flexibility through a cyclical housing slowdown.
The company also continues to return capital. In the third quarter of fiscal 2026, it repurchased 4.2 million shares for $615.7 million and paid $127.1 million in dividends.
For the first nine months of fiscal 2026, D.R. Horton repurchased 14.6 million shares for $2.2 billion and paid $388.3 million in dividends. Management still expects at least $3 billion in operating cash flow, about $2.5 billion of repurchases and roughly $500 million in dividends for fiscal 2026.
Lennar Corporation (LEN - Free Report) and PulteGroup, Inc. (PHM - Free Report) provide useful peer context because both compete in the same public homebuilder universe. For investors comparing builders, D.R. Horton’s liquidity and capital returns remain key parts of its relative appeal.
DHI Earnings Quality Needs ScrutinyD.R. Horton beat third-quarter fiscal 2026 expectations, with earnings of $3.20 per share and revenues of $9.23 billion. Homebuilding revenues rose 1.2% year over year, and homes closed increased 4% to 23,983.
The headline beat does not remove the pressure points. Earnings declined 4.8% year over year, net income fell 11.7% and income before taxes declined 9.7%.
Home sales gross margin slipped to 20.7% from 21.8% a year earlier. The cancellation rate also rose to 20% from 17%, showing that affordability constraints and cautious buyer sentiment are still weighing on demand quality.
D.R. Horton Cut Its 2026 OutlookD.R. Horton lowered its fiscal 2026 consolidated revenue guidance to $32.5-$33 billion from its prior view of $33.5-$34.5 billion. That compares with $34.25 billion in fiscal 2025.
The company also reduced its homebuilding closings outlook to 83,800-84,300 homes from the prior projection of 86,000-87,500 homes. This revised view points to a more measured sales pace rather than a rapid demand recovery.
The lower outlook matters for investors because it reflects the same affordability and mortgage-rate uncertainty affecting the broader housing market. Management is still prioritizing cash generation and disciplined sales activity, but the earnings backdrop is not accelerating.
DHI Ratings Point to Selective AppealThe bottom line is that DHI offers a reasonable but selective investment setup. Liquidity, cash returns and a measured valuation support the stock, while weaker margins, lower earnings and trimmed guidance argue against a broadly bullish stance.
DHI currently carries a Zacks Rank #3 (Hold). That rank fits a stock where estimate trends do not yet point to a stronger near-term earnings catalyst. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a VGM Score of A, Value Score of B, Growth Score of C and Momentum Score of A. These scores suggest attractive characteristics in value and momentum, while growth remains less convincing.
For investors who prioritize balance-sheet strength, shareholder returns and valuation discipline, DHI has appeal. For those seeking cleaner near-term growth, the stock still requires patience.
Key Takeaways D.R. Horton lowered average closing prices 2% to $362,000 to support affordability and demand.DHI improved construction cycle times and kept aged completed inventory limited with faster turns.DHI's gross margin fell to 20.7% as incentives stayed high despite lower stick-and-brick costs. D.R. Horton, Inc. (DHI - Free Report) is working through a housing market where affordability, mortgage-rate volatility and cautious buyers still shape demand.
The company’s current setup rests on a practical trade-off. It is using incentives, lower prices, product mix and its mortgage platform to keep homes moving while trying to protect returns.
DHI Leans on Affordable DemandD.R. Horton’s demand defense starts with affordability. In the third quarter of fiscal 2026, its average closing price declined 2% year over year to $362,000, reflecting a continued push toward more affordable offerings.
First-time buyers remain central to that strategy. They represented 65% of mortgage closings in the quarter, while net sales orders totaled 23,084 homes with an order value of $8.4 billion despite a difficult housing backdrop.
D.R. Horton Gains From Faster TurnsOperational speed is another part of the thesis. Median construction cycle times improved roughly three weeks year over year in the quarter, helping homes move through inventory more quickly.
D.R. Horton ended the quarter with 38,000 homes in inventory, including 23,300 unsold homes. Completed unsold homes were 7,600, with only 600 completed for more than six months, limiting the drag from aged supply.
DHI Uses Its Lot Strategy for FlexibilityThe company’s lot position supports future volume without forcing too much owned land onto the balance sheet. At June 30, 2026, D.R. Horton controlled 568,500 homebuilding lots, including 126,600 owned lots and 441,900 lots under purchase contracts.
That structure gives DHI room to adjust if demand changes. During the first nine months of fiscal 2026, 67% of homes closed were built on lots developed by Forestar or third parties, reinforcing its flexible land model.
PulteGroup (PHM - Free Report) is another large homebuilder competing for buyers across major housing markets, so its trends remain relevant to the same demand cycle. Toll Brothers (TOL - Free Report) , with a more luxury-oriented position, offers a useful contrast to DHI’s affordability-led approach.
D.R. Horton Still Faces Margin PressureThe offset is profitability. Home sales gross margin fell to 20.7% in the third quarter of fiscal 2026 from 21.8% a year earlier, even as closings increased 4% year over year.
Cost relief has not fully solved the issue. Stick-and-brick costs declined 5% year over year, but lot costs rose 5%, while incentives are expected to remain elevated through the fourth quarter as affordability remains the primary demand constraint.
DHI Signals a Balanced Stock SetupDHI’s setup remains balanced rather than one-sided. The company is using scale, inventory control and land flexibility to defend demand, but margin pressure and rate-sensitive buyers keep the near-term earnings picture measured.
The stock currently carries a Zacks Rank #3 (Hold), which fits a neutral short-term earnings-revision backdrop. DHI also has a VGM Score of A, Value Score of B, Growth Score of C and Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores point to favorable value and momentum characteristics, while the Growth Score is more middle-of-the-road. For investors, the combination suggests that DHI has useful support factors, but the Rank keeps the stock in hold territory until earnings visibility improves.
Capital markets recently welcomed a severe threat to traditional homebuilding. Boxabl Inc. NASDAQ: BXBL officially listed on the public markets via a special-purpose acquisition company. Boxabl carries an eye-watering $3.5 billion implied valuation and a promise to manufacture homes in the same way we manufacture cars.
Shares rose 20% out of the gate on July 20 before retracting to the $8 range the following afternoon. However, the real story behind the IPO lies buried in the capitalization table and the macroeconomic wreckage currently surrounding legacy residential builders.
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Legacy Builders Face Cracking FoundationsTo understand the hefty premium the market is assigning to modular construction, you have to look at the pain traditional builders are enduring. Traditional home construction is currently navigating a paralyzing cocktail of high mortgage rates and acute labor shortages.
D.R. Horton NYSE: DHI just reported recent earnings, and the underlying data reveal severe cracks in the traditional site-built model. Even with an earnings beat of $3.20 per share, management explicitly lowered full-year sales guidance. They cited severe affordability challenges and cautious consumer sentiment. Pretax homebuilding margins narrowed to 12.3%, and cancellation rates spiked to an alarming 20%. D.R. Horton is now sitting on a bloated inventory of 38,000 homes, with 23,300 sitting completely unsold.
Lennar NYSE: LEN is also feeling this pain. The company recently posted a 31.1% year-over-year earnings decline. To move standing inventory, Lennar has been forced to offer broad price reductions, driving average sale prices down to the $375,000 to $380,000 range. The traditional lumber-yard-and-contractor model is hitting a terminal affordability ceiling. Labor costs are sticky, material costs remain elevated, and the end consumer is tapped out by current capital costs.
Assembly Lines Replace Traditional Lumber YardsBoxabl fundamentally bypasses the localized labor bottlenecks that are currently crushing legacy players. By producing standardized modular units, most notably the $60,000, 361-square-foot Casita and the newly introduced 120-square-foot Baby Box, inside a North Las Vegas factory, Boxabl shifts residential real estate from a decentralized, weather-dependent service to a highly centralized manufacturing process.
The company's patented folding technology allows room-sized building modules to fit within standard highway dimensions for transport and then be unfolded on-site. The process fundamentally rewrites the cost structure of residential real estate, removing the unpredictability of site labor.
Boxabl recently delivered 51 units, generating trailing revenue of $3.4 million—a staggering 1,000% year-over-year revenue expansion. However, investors analyzing the company should reconcile that hyper-growth with the $3.5 billion enterprise valuation. The market is pricing in flawless manufacturing execution and immediate global scaling. The current valuation is not trading on present cash flows. Instead, investors are bidding up the stock solely on the impending disruption to a multi-trillion-dollar housing market.
Cornering the Market: A Micro Float Powder KegThe fundamentals of the business provide the long-term thesis, but the mechanics of the float dictate the immediate price action. Heavy pre-merger SPAC redemptions near the $10.40 mark restricted the actively tradeable public float for Boxabl to a microscopic 1.38 million shares.
Here is where the setup gets incredibly volatile. Current short interest hovers near 1.2 million shares. Investors are looking at a short-to-float ratio that creates a classic, hyper-volatile squeeze setup. When a float is this constrained, any surge in buying volume forces short sellers to aggressively cover their positions by buying back shares. This forced buying creates a feedback loop that drives prices up exponentially.
Adding fuel to this fire is the current lack of a derivatives market. Options chains are currently unavailable for Boxabl. This eliminates institutional delta hedging and forces all retail speculation into pure equity accumulation.
When buyers can only accumulate common shares in a heavily shorted, low-float environment, the upside volatility becomes mathematically amplified. Retail demand is already anchored by aggressive brand visibility, most notably Elon Musk's previous use of a Casita unit near SpaceX NASDAQ: SPCX facilities in Texas. That halo effect has driven an extensive, verified customer waitlist, validating the total addressable market and adding immense pressure to the short sellers currently trapped in the trade.
Crowdfunded Equity Creates Structural RisksWhile the upside potential is robust, navigating a recent SPAC merger requires calculated risk management. Boxabl brings a highly unusual capitalization table to the public markets. Prior to the IPO, Boxabl raised over $230 million from more than 50,000 individual retail investors via Regulation A+, Regulation D, and Regulation CF crowdfunding.
Existing Boxabl stakeholders executed a 100% equity roll-over into the newly combined entity. While this neutralizes the risk of an immediate insider exit, it guarantees a heavy capitalization overhang. When those initial lock-up periods eventually expire and early crowdfunding backers seek liquidity, the public market will have to absorb significant downward pressure. A highly constrained float of 1.38 million shares can easily be overwhelmed when previously locked shares flood the bid.
Laying the Final Bricks for a Hedged PortfolioThe transition from site-built homes to factory-manufactured housing is a required evolution to solve a systemic affordability crisis. Capital markets are finally ready to fund the industrialization of housing.
Investors looking to capitalize on this shift might consider a paired, strategic approach. Taking a cautious, speculative long position in a modular innovator like Boxabl offers exposure to the immediate short-squeeze mechanics and the long-term structural disruption of the housing market. Position sizing remains critical due to the imminent lock-up expirations and the premium price-to-sales multiple.
To balance that risk, cautious investors might pair that upside exposure with a hedged or short approach to legacy homebuilders. Companies dependent on traditional zoning and localized labor are slowly bleeding margins as they try to sell expensive inventory to a consumer base paralyzed by interest rates. Assembly lines revolutionized the automotive industry a century ago, and the same financial mechanics are coming for residential real estate.
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CPI Comes In Cool: Why It Could Revive These 3 Rate-Sensitive StocksD.R. Horton NYSE: DHI reported lower third-quarter earnings from a year earlier as affordability pressures and cautious consumer sentiment continued to weigh on new-home demand, though the company said it maintained margins above its prior expectations through cost controls and disciplined pricing.
The Arlington, Texas-based homebuilder reported fiscal third-quarter earnings of $3.20 per diluted share, down from $3.36 per share in the prior-year quarter. Net income was $905 million on consolidated revenue of $9.2 billion. Consolidated pre-tax income totaled $1.2 billion, resulting in a pre-tax margin of 13.3%, according to President and Chief Executive Officer Paul Romanowski.
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MarketBeat Week in Review – 07/06 - 07/10D.R. Horton closed 23,983 homes in the quarter, at the high end of its guidance range. Home sales revenue rose to $8.7 billion from $8.6 billion a year earlier, while the number of homes closed increased from 23,160 in the prior-year period. The average closing price was $362,000, flat sequentially and down 2% year over year.
Chief Operating Officer Mike Murray said that average closing price was about $155,000, or 30%, below the average price of new homes in the U.S., reflecting the company’s continued focus on affordability. Romanowski said 65% of the company’s mortgage closings during the quarter were to first-time buyers.
Orders Flat as Cancellations Rise D.R. Horton Is Defying the Housing GloomNet sales order value totaled $8.4 billion on 23,084 homes sold, both essentially flat with the year-earlier quarter, Chief Financial Officer Bill Wheat said. The cancellation rate increased to 20%, compared with 17% in the prior-year period and 16% in the previous quarter, though management said the rate remained within the company’s normal historical range.
Romanowski said affordability constraints and cautious consumer sentiment continued to affect demand. In response to an analyst question about whether demand was stabilizing, he said sales were “relatively in line with normal seasonality” but softened after the company’s April earnings call. He said D.R. Horton still sees “plenty of buyers” in its sales offices, but buyers need more confidence in the broader economy and in their ability to complete a purchase.
Management said the company lowered its full-year delivery outlook because third-quarter sales were below internal expectations. Romanowski said D.R. Horton had expected better-than-normal seasonality early in the quarter, but demand softened as the quarter progressed. He said the company was “happy with the trade-off” of achieving a stronger gross margin at a lower sales volume level.
Margins Supported by Lower Construction Costs D.R. Horton’s home sales gross margin was 20.7% in the quarter, above the high end of its guidance range. Senior Vice President of Communications Jessica Hansen said the margin reflected lower “stick and brick” costs and slightly lower incentives than in the second quarter. She said incentives are expected to remain elevated relative to historical levels.
On a per-square-foot basis, home sales revenue and lot costs were flat sequentially, while stick-and-brick costs fell 2%. Year over year, home sales revenue per square foot declined 3%, stick-and-brick costs declined 5% and lot costs increased 5%.
During the question-and-answer portion of the call, Murray said the company’s largest savings came from framing, including labor, and that costs declined across all major categories for homes closed in the third quarter. He said management expects those savings to hold at least into the fourth quarter, though lumber could become a modest headwind in fiscal 2027.
The company guided for fourth-quarter home sales gross margin of 20.5% to 21%, roughly flat with the third quarter. Wheat said the company’s current visibility points to a “relatively stable margin” going into the fourth quarter, while acknowledging uncertainty because many sales and closings occur within the same quarter.
Inventory and Land Position Remain Areas of Focus D.R. Horton started 23,900 homes in the third quarter and ended the period with 38,000 homes in inventory, down 1% sequentially and year over year. Of those homes, 23,300 were unsold and 7,600 were completed. The company said 600 completed homes had been unsold for more than six months.
Romanowski said the company’s median cycle time from home start to home close improved by about three weeks from a year earlier. He said improved cycle times allow D.R. Horton to hold less housing inventory and turn it more efficiently. The company expects fourth-quarter starts to be lower than third-quarter starts and said it will continue to manage starts based on market conditions.
At June 30, D.R. Horton’s homebuilding lot position consisted of about 570,000 lots, with 22% owned and 78% controlled through purchase contracts. Murray said the company remains focused on building more homes on lots developed by Forestar or third parties, an approach he said enhances capital efficiency and flexibility. The company’s owned lot position was down 13% from a year earlier.
During the quarter, D.R. Horton invested $2.1 billion in lots, land and development, including $1.5 billion for finished lots, $520 million for land development and $75 million for land acquisition.
Rental, Financial Services and Forestar Results The company’s rental operations generated $31 million of pre-tax income on $266 million of revenue, reflecting sales of 601 single-family rental homes and 339 multifamily rental units. Rental property inventory totaled $3 billion at quarter end, including $2.7 billion of multifamily rental properties and $321 million of single-family rental properties.
Financial services operations posted pre-tax income of $70 million on $221 million of revenue, producing a pre-tax margin of 31.9%.
Forestar, D.R. Horton’s majority-owned residential lot development company, reported revenue of $407 million on 3,659 lots sold and pre-tax income of $49 million. Forestar’s owned and controlled lot position totaled 92,000 lots, and 66% of its owned lots were under contract with or subject to a right of first offer to D.R. Horton. D.R. Horton purchased $360 million of finished lots from Forestar during the quarter.
Cash Flow, Buybacks and Guidance D.R. Horton ended the quarter with $6.1 billion of consolidated liquidity, including $2.1 billion of cash and $4 billion of available credit facility capacity. Total debt was $7.1 billion, and consolidated leverage was 23%. Wheat said the company continues to target leverage of about 20% over the long term.
During the third quarter, D.R. Horton paid $127 million in cash dividends, or $0.45 per share, and repurchased 4.2 million shares for $616 million. The company said its outstanding share count declined 6% from a year earlier. Book value per share increased 5% year over year to $84.85.
For the fourth quarter, D.R. Horton expects consolidated revenue of $8.8 billion to $9.3 billion and home closings of 22,500 to 23,000. The company expects consolidated pre-tax margin of 12.3% to 12.8%.
For fiscal 2026, the company now expects consolidated revenue of about $32.5 billion to $33 billion and home closings of 83,800 to 84,300. It also expects an income tax rate of about 25%, operating cash flow of at least $3 billion, common stock repurchases of approximately $2.5 billion and dividend payments of around $500 million.
Romanowski said D.R. Horton will remain “agile and disciplined” amid volatility and uncertainty in the broader economy while focusing on affordable price points, market share growth and shareholder returns.
About D.R. Horton (NYSE:DHI)D.R. Horton, Inc is a national homebuilding company that designs, constructs and sells new residential properties across the United States. The company's core operations focus on building single-family detached homes, townhomes and condominiums for a range of buyer segments. In addition to home construction and sales, D.R. Horton provides complementary services through subsidiaries that support the mortgage, title and closing processes for its customers, enabling integrated transaction workflows from inventory development to home delivery.
Founded in 1978 by Donald R.
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For the quarter ended June 2026, D.R. Horton (DHI - Free Report) reported revenue of $9.23 billion, representing no change compared to the same period last year. EPS came in at $3.20, compared to $3.36 in the year-ago quarter.
The reported revenue represents a surprise of +0.46% over the Zacks Consensus Estimate of $9.18 billion. With the consensus EPS estimate being $2.99, the EPS surprise was +7.02%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how D.R. Horton performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Sales Order Backlog - Homes: 15,983 compared to the 17,190 average estimate based on 14 analysts.Homes Closed - Homes: 23,983 versus 23,801 estimated by 14 analysts on average.Net Sales Orders - Homes: 23,084 versus 24,109 estimated by 14 analysts on average.Sales Order Backlog - Value: $6.18 billion compared to the $6.52 billion average estimate based on 11 analysts.Net Sales Orders - Value: $8.44 billion versus the nine-analyst average estimate of $8.71 billion.Revenues- Homebuilding- Home sales: $8.56 billion versus $8.61 billion estimated by 14 analysts on average. Compared to the year-ago quarter, this number represents a 0% change.Revenues- Rental: $380.7 million versus $299.85 million estimated by 14 analysts on average. Compared to the year-ago quarter, this number represents a 0% change.Revenues- Financial Services: $227.8 million compared to the $228.56 million average estimate based on 14 analysts. The reported number represents a change of 0% year over year.Revenues- Homebuilding- Land/lot sales and other: $19.8 million versus the 12-analyst average estimate of $20.03 million. The reported number represents a year-over-year change of 0%.Revenues- Homebuilding: $8.58 billion compared to the $8.64 billion average estimate based on 12 analysts. The reported number represents a change of 0% year over year.Revenues- Forestar: $390.5 million compared to the $407.65 million average estimate based on seven analysts. The reported number represents a change of 0% year over year.Revenues- Eliminations and Other: $-354.1 million compared to the $-341.61 million average estimate based on four analysts. The reported number represents a change of 0% year over year.View all Key Company Metrics for D.R. Horton here>>>
Shares of D.R. Horton have returned -7.2% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
D.R. Horton, Inc. (DHI) Q3 2026 Earnings Call July 21, 2026 8:30 AM EDT
Company Participants
Jessica Hansen - Senior VP of Communications & People and Head of Investor Relations
Paul Romanowski - President, CEO & Director
Michael Murray - Executive VP & COO
Bill Wheat - Executive VP & CFO
Conference Call Participants
John Lovallo - UBS Investment Bank, Research Division
Stephen Kim - Evercore ISI Institutional Equities, Research Division
Alan Ratner - Zelman & Associates LLC
Matthew Bouley - Barclays Bank PLC, Research Division
Eric Bosshard - Cleveland Research Company LLC
Richard Reid - Wells Fargo Securities, LLC, Research Division
Ryan Gilbert - BTIG, LLC, Research Division
Anthony Pettinari - Citigroup Inc., Research Division
Rafe Jadrosich - BofA Securities, Research Division
Trevor Allinson - Wolfe Research, LLC
Susan Maklari - Goldman Sachs Group, Inc., Research Division
Michael Dahl - RBC Capital Markets, Research Division
Buck Horne - Raymond James & Associates, Inc., Research Division
Kenneth Zener - Seaport Research Partners
Jade Rahmani - Keefe, Bruyette, & Woods, Inc., Research Division
Jay McCanless - Citizens JMP Securities, LLC, Research Division
Alex Barrón - Housing Research Center, LLC
Presentation
Operator
Good morning, and welcome to the Third Quarter 2026 Earnings Conference Call for D.R. Horton, America's Builder. [Operator Instructions] Please note this conference is being recorded.
I will now turn the call over to Jessica Hansen, Senior Vice President of Communications for D.R. Horton.
Jessica Hansen
Senior VP of Communications & People and Head of Investor Relations
Thank you, Paul, and good morning. Welcome to our call to discuss our financial results for the third quarter of fiscal 2026.
Before we get started, today's call includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Although D.R. Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to
Key Takeaways D.R. Horton beat fiscal Q3 estimates as closings rose 4% to 23,983 and revenues reached $9.23B.DHI's home sales gross margin fell to 20.7% as cancellations rose to 20% and incentives stayed elevated.D.R. Horton cut fiscal 2026 revenue guidance to $32.5-$33B and closings to 83,800-84,300 homes. D.R. Horton, Inc. (DHI - Free Report) reported third-quarter fiscal 2026 earnings of $3.20 per share, beating the Zacks Consensus Estimate of $2.99 by 7%. Revenues of $9.23 billion also surpassed the consensus mark of $9.19 billion by 0.5%. On a year-over-year basis, earnings declined 4.8%, while revenues increased marginally.
The earnings and revenue beat were driven by higher home-closing volumes, resilient home sales margins, disciplined management of pricing and incentives, contributions from the Rental, Forestar and Financial Services businesses and the benefit of a lower diluted share count from share repurchases. However, lower profitability, elevated incentives and cautious consumer demand continued to weigh on results.
Shares of this Arlington, TX-based homebuilder gained more than 1.1% following the earnings release on Tuesday.
DHI Sustains Revenue as Profitability ModeratesConsolidated revenues totaled $9.227 billion compared with $9.225 billion in the prior-year quarter. Income before taxes declined 9.7% year over year to $1.23 billion, while the pre-tax margin contracted to 13.3% from 14.7%.
Net income fell 11.7% to $904.9 million from a year ago. Cost of sales increased to $7.08 billion from $7.02 billion, while selling, general and administrative expenses rose 5% to $991.2 million.
The lower earnings reflected margin pressure rather than a meaningful decline in consolidated revenues. Management continued to balance sales pace, pricing, incentives and inventory levels across its communities.
D.R. Horton's Home Closings Support SalesHomebuilding revenues increased 1.2% year over year to $8.69 billion. Homes closed rose 4% year over year to 23,983, reaching the high end of management’s guidance range for the quarter.
Homebuilding pre-tax income declined 10.1% to $1.07 billion, while the segment’s pre-tax margin narrowed to 12.3% from 13.8%. The results show that higher delivery volume was not enough to offset the effect of weaker profitability.
Net sales orders totaled 23,084 homes, nearly unchanged from the prior-year quarter level of 23,071 units. The value of orders was $8.44 billion, also broadly stable year over year.
DHI Faces Higher Cancellations and Margin PressureThe cancellation rate increased to 20% from 17% in the year-ago period. Management said that affordability constraints and cautious consumer sentiment continued to affect new-home demand.
Home sales revenues increased to $8.68 billion from $8.56 billion. The home sales gross margin fell to 20.7% from 21.8%, though it improved from 20.1% in the second quarter of fiscal 2026.
Gross margin before interest and other costs was 24.7%, down from 25.7% a year earlier. Management expects sales incentives to remain elevated in the fiscal fourth quarter, with incentive levels depending on demand, mortgage rates and broader market conditions.
D.R. Horton Maintains Flexible Inventory PositionThe company ended the quarter with 38,000 homes in inventory, including 23,300 unsold homes. Completed unsold homes totaled 7,600, of which 600 had been completed for more than six months.
During the first nine months of fiscal 2026, 67% of homes closed were built on lots developed by Forestar or third parties, up from 65% a year ago. This structure supports D.R. Horton’s effort to maintain flexibility in its land and lot investments.
Homebuilding return on inventory declined to 17% for the trailing 12 months from 22.1% a year earlier. The decrease reflected lower trailing homebuilding pre-tax income against a relatively stable average inventory base.
DHI's Other Segments Contribute to ResultsRental operations generated revenues of $266.1 million (down 30.1% from a year ago) from the sale of 601 single-family rental homes and 339 multifamily rental units. The segment posted pre-tax income of $31 million (down 43.4% year over year) and a pre-tax margin of 11.6% (contracted from 14.4%).
Forestar sold 3,659 lots and generated revenues of $407 million (up 4.2% from a year ago). Pre-tax income was $48.7 million (up 11.7% year over year), resulting in a margin of 12% from 11.2% a year ago.
Financial Services recorded revenues of $220.7 million (down 3.1% year over year) and pre-tax income of $70.3 million (down 13.5%). The segment’s pre-tax margin was down to 31.9% from 35.7% a year ago, yet making it the company’s most profitable business by margin during the quarter.
DHI Returned Capital While Preserving LiquidityD.R. Horton continued to return cash to shareholders during the quarter. The company repurchased 4.2 million shares for $615.7 million and paid $127.1 million in cash dividends. Common shares outstanding totaled 280.7 million as of June 30, 2026, down 6% year over year, while the remaining repurchase authorization was $1.1 billion.
Cash, cash equivalents and restricted cash totaled $2.13 billion at quarter-end compared with $3.03 billion at the end of fiscal 2025. Total liquidity remained solid at $6.1 billion, while the debt-to-total-capital ratio was 23%. The company also had $600 million of homebuilding senior notes maturing within the next 12 months. The board declared a quarterly dividend of 45 cents per share.
Cash provided by operations was $880.8 million for the first nine months of fiscal 2026 compared with $949.1 million a year ago. Trailing 12-month return on equity was 12.8%, while return on assets was 8.5%, reflecting continued profitability despite lower year-over-year earnings.
D.R. Horton Trims Fiscal 2026 GuidanceD.R. Horton now expects fiscal 2026 consolidated revenues of $32.5-$33 billion, down from $33.5-$34.5 billion expected earlier. This compares with $34.25 billion in fiscal 2025.
Homebuilding closings are projected to be between 83,800 and 84,300 homes (versus earlier projection of 86,000-87,500 homes). This compares with 84,863 in fiscal 2025.
Income tax rate is expected to be approximately 25%.
The company reiterated its expectations for at least $3 billion in operating cash flow, approximately $2.5 billion in share repurchases and about $500 million in dividend payments.
DHI’s Zacks Rank & Recent Homebuilding ReleasesD.R. Horton currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KB Home (KBH - Free Report) reported second-quarter fiscal 2026 earnings of 43 cents per share, in line with the Zacks Consensus Estimate. Earnings declined 71.3% from $1.50 per share in the year-ago quarter. Total revenues of $1.112 billion beat the consensus mark of $1.090 billion by 2% but decreased 27% year over year. Results reflected lower deliveries and pricing pressure, partly offset by progress in the company’s Built to Order model, which represented 73% of net orders.
For the third quarter of fiscal 2026, KBH expects deliveries of 2,600-2,800 homes and housing revenues of $1.20-$1.35 billion. Housing gross margin is projected to be between 16.0% and 16.6%, assuming no inventory-related charges.
Lennar Corporation (LEN - Free Report) reported mixed second-quarter fiscal 2026 results, with adjusted earnings topping the Zacks Consensus Estimate by 6.5% while revenues missed the same by 1.6%. On a year-over-year basis, both metrics declined 31.1% and 5.2%, respectively, given ongoing softness in housing demand and a lower average sales price (ASP) for homes delivered.
For the third quarter of fiscal 2026, Lennar expects home deliveries in the range of 20,500-21,500 homes and new orders between 21,000 and 22,000 homes. The company expects the ASP to be between $375,000 and $380,000. Gross margin on home sales is expected to be approximately 16%, while SG&A expenses are projected to be between 8.8% and 9% of home sales.
PulteGroup, Inc. (PHM - Free Report) is scheduled to report its second-quarter 2026 results on July 22, 2026. Earnings for the to-be-reported quarter are expected to decline 21.5% on 9.6% lower revenues.
D.R. Horton (DHI - Free Report) came out with quarterly earnings of $3.2 per share, beating the Zacks Consensus Estimate of $2.99 per share. This compares to earnings of $3.36 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +7.02%. A quarter ago, it was expected that this homebuilder would post earnings of $2.15 per share when it actually produced earnings of $2.24, delivering a surprise of +4.19%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
D.R. Horton, which belongs to the Zacks Building Products - Home Builders industry, posted revenues of $9.23 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.46%. This compares to year-ago revenues of $9.23 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
D.R. Horton shares have added about 0.5% since the beginning of the year versus the S&P 500's gain of 8.7%.
What's Next for D.R. Horton?While D.R. Horton has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for D.R. Horton was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.38 on $10.2 billion in revenues for the coming quarter and $10.60 on $33.85 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Home Builders is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Beazer Homes (BZH - Free Report) , is yet to report results for the quarter ended June 2026.
This homebuilder is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of -230.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Beazer Homes' revenues are expected to be $510.43 million, down 6.4% from the year-ago quarter.
ARLINGTON, Texas--(BUSINESS WIRE)---- $DHI #earnings--D.R. Horton reported net income for the third fiscal quarter of 2026 of $904.9 million and earnings per diluted share of $3.20.
D.R. Horton, Inc. (NYSE:DHI) will release its third quarter earnings report before the opening bell on Tuesday, July 21.
Analysts expect the Arlington, Texas-based company to report quarterly earnings of $2.99 per share, down from $3.36 per share in the year-ago period. The consensus estimate for D.R. Horton’s quarterly revenue is $9.17 billion. It reported $9.23 billion last year, according to Benzinga Pro.
On April 21, D.R. Horton reported better-than-expected second-quarter EPS results.
D.R. Horton shares fell 3.3% to close at $149.39 on Friday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying DHI stock? Here’s what analysts think:
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Key Takeaways DHI is expected to post Q3 EPS of $2.99 on revenues of $9.18 billion, both down y/y.Higher closings and an 11% rise in fiscal second-quarter net orders are expected to support DHI's revenues.Elevated incentives, lower selling prices and affordability pressures may keep D.R. Horton's margins strained. D.R. Horton Inc. (DHI - Free Report) is slated to report results for the third quarter of fiscal 2026 (ended June 30, 2026) on July 21, before the opening bell.
In the last quarter, the company’s earnings beat the Zacks Consensus Estimate by 4.2% but revenues missed the same by 1.3%. However, both metrics declined 13.2% and 2.3% from the year-ago reported figures.
Markedly, D.R. Horton reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 4.1%.
How Are Estimates Placed for D.R. Horton Stock?The Zacks Consensus Estimate for the quarter’s earnings per share (EPS) has been unchanged at $2.99 over the past 60 days. The estimated figure indicates a decline of 11% from the year-ago reported EPS of $3.36.
The consensus mark for revenues is $9.18 billion, indicating a 0.4% year-over-year decline.
Factors Likely Influencing DHI’s Q3 ToplineD.R. Horton’s fiscal third-quarter revenues are expected to have benefited from higher home closing volumes, supported by its broad geographic footprint, entry-level product mix and continued focus on affordability. During the fiscal second-quarter earnings call, management noted that sales followed normal seasonal trends through March and remained encouraging into April. The company also reported an 11% increase in net sales orders in the fiscal second quarter, providing a stronger backlog to support third-quarter deliveries.
However, affordability constraints and cautious consumer sentiment likely remained the biggest headwinds for D.R. Horton’s fiscal third quarter. Elevated mortgage rates and higher ownership costs continued to pressure buyer affordability, prompting the company to maintain elevated sales incentives to support demand. Management has consistently indicated that incentive levels would remain high through the remainder of fiscal 2026, depending on mortgage rates and market conditions.
Despite these challenges, revenues are expected to have improved sequentially, supported by higher home closings and solid order momentum. Management guided for fiscal third-quarter consolidated revenues of $8.8-$9.3 billion and home closings of 23,500-24,000 units, implying a meaningful increase from the second quarter's 19,486 closings.
D.R. Horton's affordable, entry-level product mix, broad geographic footprint and disciplined operations likely supported home closings during the quarter. However, elevated incentives and affordability-focused pricing are expected to have kept average selling prices below year-ago levels, limiting revenue growth despite higher volumes. Demand also remained sensitive to mortgage rates and broader economic conditions.
Meanwhile, Forestar and Financial Services likely provided steady support, while Homebuilding continued to generate more than 90% of consolidated revenues.
Under the Homebuilding segment (which contributed 92% to the fiscal 2025 total revenues), the Zacks Consensus Estimate for DHI’s home sales is pegged at $8.59 billion for the fiscal third quarter, suggesting a rise from the $8.56 billion reported a year ago. The consensus mark for the average selling prices (ASPs) for homes delivered is expected to be $362,000, whereas it reported $370,000 a year ago.
Rental Property revenues (which contributed 4.8% to the total revenues in fiscal 2025) are expected to be $298 million, which implies a decline from the year-ago reported level of $381 million.
Conversely, Forestar revenues (which contributed 4.9% to the total revenues in fiscal 2025) are likely to be $408 million, which indicates growth from the year-ago reported level of $391 million. The Financial Services segment’s revenues (which contributed 2.5% to the total revenues in fiscal 2025) are expected to be $229 million, which indicates slight growth from the year-ago reported level of $228 million.
Factors Likely Influencing DHI’s Margins & Bottom LineMargins are expected to remain under pressure as elevated incentives continue to offset the benefits of improving construction costs. Management expects fiscal third-quarter home sales gross margin of 19.7-20.2%, reflecting relatively stable profitability sequentially as lower negotiated trade costs begin flowing through completed homes.
However, lower average selling prices and higher incentive spending are likely to have continued weighing on profitability. Lot costs remain elevated, while SG&A expenses could stay relatively high as a percentage of revenues if pricing pressure persists.
On the positive side, faster construction cycle times, lower completed unsold inventory and disciplined inventory management should have supported operating efficiency. D.R. Horton’s strong liquidity, low leverage and continued share repurchases are also expected to have provided support to EPS, even as the company navigates a challenging housing market.
The Zacks Consensus Estimate for income before income taxes for the company’s Homebuilding segment is pegged at $1.02 billion, suggesting a fall from the $1.19 billion reported a year ago.
Orders & Backlog
For the fiscal third quarter, the consensus estimate suggests that net sales orders will rise 4.5% year over year to 24,109 units. The same for backlog is pegged at 17,190 units, which indicates 22.1% growth from that recorded a year ago. The value of the backlog is expected to be $6.52 billion, implying growth from the $5.34 billion reported a year ago.
What the Zacks Model Unveils for DHIOur proven model does not conclusively predict an earnings beat for D.R. Horton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Earnings ESP: DHI has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Stocks Poised to Beat EarningsHere are some companies in the Zacks Construction sector, which, according to our model, have the right combination of elements to post an earnings beat this time around.
Dycom Industries, Inc. (DY - Free Report) currently has an Earnings ESP of +0.47% and sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dycom’s earnings beat estimates in the last four quarters, the average surprise being 25%. Dycom’s earnings for the to-be-reported quarter are expected to increase 39.3%.
Owens Corning (OC - Free Report) has an Earnings ESP of +1.66% and a Zacks Rank of 3 at present.
For the quarter to be reported, Owens Corning’s earnings are expected to decline 27.3%. OC’s earnings beat estimates in three of the last four quarters and missed on one occasion, the average surprise being 3.8%.
United Rentals (URI - Free Report) currently has an Earnings ESP of +1.56% and a Zacks Rank of 2.
The company’s earnings beat estimates in one of the trailing four quarters and missed on the other three occasions, the average negative surprise being 1.5%. United Rentals’ earnings for the quarter are expected to increase 11.2%.
The upcoming report from D.R. Horton (DHI - Free Report) is expected to reveal quarterly earnings of $2.99 per share, indicating a decline of 11% compared to the year-ago period. Analysts forecast revenues of $9.18 billion, representing a decline of 0.4% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
With that in mind, let's delve into the average projections of some D.R. Horton metrics that are commonly tracked and projected by analysts on Wall Street.
It is projected by analysts that the 'Revenues- Homebuilding- Home sales' will reach $8.59 billion. The estimate suggests a change of +0.3% year over year.
The collective assessment of analysts points to an estimated 'Revenues- Rental' of $297.62 million. The estimate indicates a change of -21.8% from the prior-year quarter.
The average prediction of analysts places 'Revenues- Financial Services' at $228.92 million. The estimate indicates a year-over-year change of +0.5%.
Analysts predict that the 'Revenues- Homebuilding' will reach $8.61 billion. The estimate indicates a change of +0.3% from the prior-year quarter.
Analysts expect 'Geographic Revenues- Homebuilding- Northwest' to come in at $671.46 million. The estimate indicates a year-over-year change of -3.9%.
Based on the collective assessment of analysts, 'Geographic Revenues- Homebuilding- North' should arrive at $1.23 billion. The estimate points to a change of +5.7% from the year-ago quarter.
Analysts forecast 'Geographic Revenues- Homebuilding- Southwest' to reach $1.26 billion. The estimate suggests a change of +6.3% year over year.
The consensus among analysts is that 'Geographic Revenues- Homebuilding- South Central' will reach $1.86 billion. The estimate points to a change of -4.1% from the year-ago quarter.
Analysts' assessment points toward 'Average Selling Price - Homes Closed' reaching $361.83 million. Compared to the present estimate, the company reported $369.60 million in the same quarter last year.
According to the collective judgment of analysts, 'Homes Closed - Homes' should come in at 23,801 . The estimate is in contrast to the year-ago figure of 23,160 .
The consensus estimate for 'Net Sales Orders - Homes' stands at 24,109 . The estimate is in contrast to the year-ago figure of 23,071 .
The combined assessment of analysts suggests that 'Sales Order Backlog - Homes' will likely reach 17,190 . The estimate compares to the year-ago value of 14,075 .
View all Key Company Metrics for D.R. Horton here>>>
Shares of D.R. Horton have experienced a change of -0.6% in the past month compared to the +0.5% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), DHI is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
D.R. Horton (DHI - Free Report) closed at $151.55 in the latest trading session, marking a +1.04% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.62%.
Heading into today, shares of the homebuilder had lost 4.06% over the past month, lagging the Construction sector's loss of 2.55% and the S&P 500's gain of 1.61%.
Investors will be eagerly watching for the performance of D.R. Horton in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 21, 2026. The company is forecasted to report an EPS of $2.99, showcasing a 11.01% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $9.18 billion, showing a 0.44% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.6 per share and a revenue of $33.85 billion, representing changes of -8.38% and -1.16%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for D.R Horton. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.31% higher within the past month. D.R. Horton currently has a Zacks Rank of #3 (Hold).
In terms of valuation, D.R. Horton is currently trading at a Forward P/E ratio of 14.15. This represents a discount compared to its industry average Forward P/E of 14.45.
Investors should also note that DHI has a PEG ratio of 2.1 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders industry had an average PEG ratio of 2.45 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 176, finds itself in the bottom 29% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DHI in the coming trading sessions, be sure to utilize Zacks.com.
Investors breathed a sigh of relief on Tuesday, July 14, when the Consumer Price Index (CPI) came in below consensus, signaling that inflation slowed month over month in June. The index declined 0.4% between May and June, mainly due to falling energy prices.
The annual rate of 3.5%, while still well above target, also came in below the 3.8% consensus. But the biggest relief came to rate-sensitive sectors like fintechs, Real Estate Investment Trusts (REITs), and entry-level homebuilders, many of which have been beaten down by sticky inflation, high rates, and weary consumers. While one print doesn’t equate to a trend, June’s number bodes well for this group, especially the three stocks we’ll discuss below.
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The Hike Scare Just Lost a Few TeethInflation had been creeping higher in recent months, and Federal Reserve governors like Christopher Waller had been considering voting for rate hikes as early as this month when the Federal Open Market Committee (FOMC) meets on July 29. According to CME Group’s FedWatch tool, the odds of a July rate hike reached as high as 42% on July 13, but dropped to just 16.6% the day after the cool CPI release.
The odds of a September rate hike are still nearly 60% (and cuts still appear completely off the table), but a three-month period of relief could be meaningful for the sectors we mentioned earlier. The 10-year Treasury yield dropped sharply after the CPI release, a boost for homebuilders, since 30-year fixed mortgage rates most closely track the 10-year Treasury yield. Fintechs also suffer when mortgage rates are high, as loan demand weakens and credit risk increases. They’re also frequently considered growth stocks with earnings potential, not necessarily current profits. And REITs are both a bond proxy and a real estate proxy, benefiting from lower Treasury yields and lower borrowing costs to acquire property.
While June’s report is the largest one-month CPI decline since April 2020, it's important to understand how the calculus has shifted. Waller has said it will take several months of data to convince him inflation is actually heading in the right direction, and most of the CPI relief came from lower gasoline prices (down 9.7% month-over-month). The relief may not last, but investors are now betting on a scenario in which a single rate hike is on the table rather than multiple increases before year-end. A pause into 2027 remains a dream-world outcome, one that would likely require hypnotizing several heads of state, but the market is at least starting to price in a less aggressive path.
3 Stocks That Benefit From Rate ReliefThree stocks, one each from the REIT, homebuilder, and fintech industries, offer broad exposure to a potential slow-rate environment. Rate hikes may not be avoided entirely, and cuts still appear unlikely, but these stocks could benefit if additional hikes are pushed further out.
D.R. Horton: The Affordability HomebuilderD.R. Horton Today
$151.29 +1.30 (+0.87%)
As of 02:22 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$129.11▼
$184.54Dividend Yield1.19%
P/E Ratio14.18
Price Target$168.62
D.R. Horton Inc. NYSE: DHI is the country’s largest homebuilder by total volume, specializing in entry-level homes for first-time buyers. More than 60% of the company’s homes go to first-time buyers, a group for whom affordability is often the most crucial factor. Lower mortgage rates put more renters into the pool of buyers, and also allow DHI to boost margins by reducing the amount of buydowns and incentives it offers.
The company posted a top and bottom-line earnings beat during its Q2 2026 report in April and upgraded its full-year revenue estimates, but buydowns and incentives were one area of stress for management, with more than 70% of closings requiring a buydown. The Q3 2026 report is scheduled for July 21, so this CPI report is welcome news for management ahead of that conference call. D.R. Horton also has a policy tailwind thanks to the June passage of the 21st Century Road to Housing Act, which sent DHI shares up nearly 7% in a single session.
Realty Income: Bond-like Yields With Strong Underlying BusinessRealty Income Today
O
Realty Income
$63.74 -0.03 (-0.05%)
As of 02:22 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$55.86▼
$67.93Dividend Yield5.10%
P/E Ratio52.26
Price Target$67.17
Few publicly traded companies are more linked to the 10-year Treasury yield than Realty Income Corp. NYSE: O, the long-term net-lease REIT. The company pays a 5.1% dividend with a more than 30-year track record of annual payout increases. And most importantly, this isn’t a weak REIT dependent on steady rates. The underlying business is in terrific shape, as evidenced by a Q1 2026 earnings beat, during which management raised Adjusted Funds From Operations (AFFO) and investment volume guidance. It also deployed $2.8 billion in capital at a cash yield of 7.1%, and that spread will only get healthier as funding costs fall. If the 10-year yield continues to drop and rate hikes are postponed, the stock’s biggest overhang is removed, and the 5.1% dividend can continue growing.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$14.92▼
$32.73P/E Ratio41.08
Price Target$22.78
SoFi Technologies Inc. NASDAQ: SOFI is the high beta way to play rates if the Fed stands pat. The company earns most of its income from lending, especially personal and student loans. SoFi is a nationally chartered bank with a diverse lending book, but demand for personal and student loan refinancing had been dormant during the high-rate regime. The stock is down nearly 30% year to date. However, this performance belies some promising results.
Despite the massive stock drawdown, SoFi’s Q1 2026 report was strong as revenue grew 42% year-over-year to $1.09 billion, above the anticipated $1.05 billion. The company also reported record loan originations totaling $12.2 billion. A steady-rate environment may not trigger a stampede of refinancings, but it could help revitalize the company’s sleepy student loan refinance program. Analysts at Goldman Sachs seem to agree; they boosted their price target on the stock from $17 to $21 on July 9.
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The 30-year fixed rate mortgage ticked up to 6.49% this week, according to Freddie Mac. After peaking at around 7.8% in late 2023, the primary mortgage rate had been drifting lower in recent years, in fits and starts. It dropped just below 6% in February of this year, the first time it was below that level since 2022.
Since then, the borrowing rate has been rising again. While the Federal Reserve sets very short-term interest rates, mortgage rates tend to follow the yield on the 10-year Treasury. That yield has been rising all year and jumped dramatically in July as ongoing fighting in the Persian Gulf threatens to send oil prices higher again, and inflation with them.
That's bad news for both homebuyers and homebuilders, as it makes homes even less affordable. Home prices hit an all-time high last month, up 1.8% in June from a year earlier, to a median price of $440,600.
As a result, the stocks of major homebuilders, including Lennar (LEN 0.70%), D.R. Horton (DHI 0.58%), PulteGroup (PHM 1.10%), and NVR (NVR 0.90%), are all down over the past week.
Today's Change
(
-0.70
%) $
-0.59
Current Price
$
83.68
There's a huge shortage of available homes The question for investors is: When will they get a break?
Probably not soon. The housing industry has struggled since the 2008 financial crisis, as not enough homes have been built over nearly two decades to meet demand. Late last year, Goldman Sachs estimated that at least 3 million to 4 million new homes need to be built, beyond normal construction, to address the housing supply shortage and boost affordability.
The industry has been in an even worse slump since 2022, when mortgage rates began to climb as the pandemic receded. For more than a decade before the pandemic, mortgage rates remained below 5%, and many homeowners were able to lock in low rates by refinancing their home loans. Now, many of those homeowners are more reluctant to move because they would have to take on greater interest expenses on new loans.
Image source: Getty Images.
Goldman Sachs says land-use restrictions are the biggest constraint on housing supply growth. Congress just passed bipartisan legislation that became law this week to make it easier to build houses. It includes several provisions to make more land available for homebuilding.
That will likely help the ailing housing industry, at least a bit. But until mortgage rates come back down -- which probably can't happen until the war in the Persian Gulf ends and inflation falls back to near the Federal Reserve's 2% target -- I don't see homebuyers or homebuilders getting much relief. Right now, investing in homebuilder stocks is very risky.
Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends D.R. Horton, Goldman Sachs Group, Lennar, and NVR. The Motley Fool has a disclosure policy.
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
$158.45 -0.12 (-0.07%)
As of 07/2/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$129.11▼
$184.54Dividend Yield1.14%
P/E Ratio14.85
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.
That’s not to suggest the company is immune to industry headwinds. Analysts rate the stock a Hold with limited 12-month upside.
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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 HomesD.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 MarketThe 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 StrengthThe 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 ConfidenceThese 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 UpsideAnalyst 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 RisksThe 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 MarketFor 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.
Should You Invest $1,000 in D.R. Horton Right Now?Before you consider D.R. Horton, you'll want to hear this.
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D.R. Horton (DHI - Free Report) closed at $164.23 in the latest trading session, marking a -1.24% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.18% for the day. Elsewhere, the Dow saw an upswing of 0.59%, while the tech-heavy Nasdaq appreciated by 2.07%.
The homebuilder's stock has climbed by 13.05% in the past month, exceeding the Construction sector's gain of 5.87% and the S&P 500's loss of 2.9%.
The investment community will be closely monitoring the performance of D.R. Horton in its forthcoming earnings report. The company is scheduled to release its earnings on July 21, 2026. The company's earnings per share (EPS) are projected to be $3, reflecting a 10.71% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.19 billion, reflecting a 0.42% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.61 per share and a revenue of $33.85 billion, representing changes of -8.3% and -1.17%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for D.R Horton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.34% upward. D.R. Horton currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that D.R. Horton has a Forward P/E ratio of 15.68 right now. Its industry sports an average Forward P/E of 16.94, so one might conclude that D.R. Horton is trading at a discount comparatively.
It's also important to note that DHI currently trades at a PEG ratio of 2.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 2.69.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 226, this industry ranks in the bottom 8% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
D.R. Horton (DHI - Free Report) ended the recent trading session at $152.48, demonstrating a -2.46% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
Prior to today's trading, shares of the homebuilder had gained 16.04% outpaced the Construction sector's gain of 5.36% and the S&P 500's gain of 1.56%.
The investment community will be closely monitoring the performance of D.R. Horton in its forthcoming earnings report. The company is scheduled to release its earnings on July 21, 2026. It is anticipated that the company will report an EPS of $2.98, marking a 11.31% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $9.18 billion, down 0.49% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.57 per share and a revenue of $33.86 billion, indicating changes of -8.64% and -1.14%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for D.R Horton. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. D.R. Horton presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, D.R. Horton is holding a Forward P/E ratio of 14.79. This signifies a discount in comparison to the average Forward P/E of 14.83 for its industry.
Also, we should mention that DHI has a PEG ratio of 2.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Building Products - Home Builders industry stood at 1.95 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DHI in the coming trading sessions, be sure to utilize Zacks.com.
DHI Group is rated a buy, driven by its defensible MOAT in security-cleared tech talent and strong earnings growth. CJ, DHI's high-margin platform for cleared professionals, is becoming the primary earnings driver, offsetting Dice's cyclical weakness. Recent acquisition of PSG expands DHI into end-to-end staffing, enabling higher ARPU and diversified revenue streams.
Calamos Advisors LLC increased its position in D.R. Horton, Inc. (NYSE:DHI – Free Report) by 25.8% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 201,437 shares of the construction company’s stock after buying an additional 41,249 shares during the quarter. Calamos Advisors LLC owned about 0.07% of D.R. Horton worth $29,013,000 at the end of the most recent reporting period.
Several other institutional investors have also modified their holdings of the company. Capital World Investors lifted its holdings in shares of D.R. Horton by 159.8% in the third quarter. Capital World Investors now owns 30,252,842 shares of the construction company’s stock valued at $5,126,995,000 after buying an additional 18,607,545 shares during the period. Invesco Ltd. lifted its holdings in shares of D.R. Horton by 18.1% during the third quarter. Invesco Ltd. now owns 3,372,020 shares of the construction company’s stock valued at $571,456,000 after purchasing an additional 517,752 shares during the last quarter. Viking Global Investors LP lifted its holdings in shares of D.R. Horton by 108.3% during the second quarter. Viking Global Investors LP now owns 2,827,032 shares of the construction company’s stock valued at $364,461,000 after purchasing an additional 1,469,978 shares during the last quarter. Capital International Investors purchased a new stake in shares of D.R. Horton during the third quarter valued at $395,179,000. Finally, Principal Financial Group Inc. lifted its holdings in shares of D.R. Horton by 12.5% during the third quarter. Principal Financial Group Inc. now owns 2,269,557 shares of the construction company’s stock valued at $384,624,000 after purchasing an additional 252,878 shares during the last quarter. Institutional investors and hedge funds own 90.63% of the company’s stock.
D.R. Horton Stock Down 2.6% Shares of D.R. Horton stock opened at $159.95 on Friday. The stock has a 50-day moving average price of $148.13 and a 200 day moving average price of $150.61. The company has a market cap of $46.34 billion, a P/E ratio of 14.99, a P/E/G ratio of 2.62 and a beta of 1.44. The company has a current ratio of 6.46, a quick ratio of 0.98 and a debt-to-equity ratio of 0.27. D.R. Horton, Inc. has a 1 year low of $114.17 and a 1 year high of $184.54.
D.R. Horton (NYSE:DHI – Get Free Report) last announced its quarterly earnings data on Tuesday, April 21st. The construction company reported $2.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.15 by $0.09. The firm had revenue of $7.56 billion during the quarter, compared to the consensus estimate of $9.22 billion. D.R. Horton had a return on equity of 12.94% and a net margin of 9.51%.The business’s revenue for the quarter was down 2.3% on a year-over-year basis. During the same period in the prior year, the business earned $2.58 EPS. As a group, analysts expect that D.R. Horton, Inc. will post 10.5 EPS for the current fiscal year.
D.R. Horton Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 14th. Investors of record on Thursday, May 7th will be paid a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Thursday, May 7th. D.R. Horton’s dividend payout ratio is currently 16.87%.
Insider Transactions at D.R. Horton In related news, SVP Aron M. Odom sold 260 shares of the stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $167.55, for a total value of $43,563.00. Following the completion of the sale, the senior vice president directly owned 6,457 shares of the company’s stock, valued at approximately $1,081,870.35. This represents a 3.87% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.66% of the company’s stock.
D.R. Horton News Summary Here are the key news stories impacting D.R. Horton this week:
Positive Sentiment: UBS raised its price target on D.R. Horton to $206 and moved to a “buy” rating, citing upside vs. the current price — a sizable analyst upgrade that can attract buyers. UBS raises price target to $206 Positive Sentiment: Truist published a forecast calling for strong price appreciation in DHI, adding institutional support to the bullish case. Truist Forecasts Strong Price Appreciation for D.R. Horton Positive Sentiment: Market commentary highlights a rotation of capital into housing names (DHI cited as a preferred large-cap homebuilder) on a potential future Fed pivot and rate easing—a thematic flow that can lift DHI relative to smaller builders. Neutral Sentiment: Brokerage consensus on DHI remains around “Hold” (average recommendation), suggesting mixed analyst conviction despite some buy-side upgrades. D.R. Horton Receives Average “Hold” from Brokerages Neutral Sentiment: The broader Q1 earnings backdrop is being described as generally positive, which could support cyclicals like homebuilders if the tone holds. Earnings Picture Remains Positive: A Closer Look Negative Sentiment: Peer results are weak: NVR and PulteGroup reported Q1 misses and declining revenues/settlements — signals that housing demand and margins remain under pressure and can weigh on DHI’s near-term outlook. NVR’s Q1 Earnings Miss PulteGroup Q1 Miss Negative Sentiment: D.R. Horton’s latest quarter showed an EPS beat but a revenue shortfall (revenues down year-over-year), which markets often penalize in a rate-sensitive sector where demand and backlog trends matter. (Company Q1 results and guidance context.) Wall Street Analysts Forecast Growth DHI has been the subject of several analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of D.R. Horton in a report on Friday, April 10th. Bank of America set a $158.00 target price on D.R. Horton in a report on Wednesday, January 21st. Evercore upped their target price on D.R. Horton from $167.00 to $169.00 and gave the company an “in-line” rating in a report on Wednesday, January 21st. Citizens Jmp reaffirmed a “market perform” rating on shares of D.R. Horton in a report on Wednesday, January 7th. Finally, Seaport Research Partners reaffirmed a “neutral” rating on shares of D.R. Horton in a report on Tuesday, April 7th. Four analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $168.54.
View Our Latest Stock Analysis on D.R. Horton
D.R. Horton Company Profile (Free Report)
D.R. Horton, Inc is a national homebuilding company that designs, constructs and sells new residential properties across the United States. The company’s core operations focus on building single-family detached homes, townhomes and condominiums for a range of buyer segments. In addition to home construction and sales, D.R. Horton provides complementary services through subsidiaries that support the mortgage, title and closing processes for its customers, enabling integrated transaction workflows from inventory development to home delivery.
Founded in 1978 by Donald R.
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Market volatility has a way of scattering investors—but it doesn't destroy money. It moves it. And right now, Larry Benedict, founder of The Opportunistic Trader and a 40-year market veteran, says he's watching clear rotation into three sectors with specific stocks absorbing the bulk of those flows.
The backdrop is a market that's done something genuinely unusual. After weeks of turbulence, the Nasdaq ripped roughly 20% off its lows while the S&P gained around 12–13%—one of the sharpest recoveries Benedict says he's witnessed in four decades. And yet, he's not ready to call it a new bull run. "I think we're nearer the top end of the range," he says, pointing to persistent geopolitical uncertainty, energy prices, and questions about what comes next for interest rates. He's not ultra-bearish—but he is watching risk.
That watchfulness is exactly what's driving his sector focus.
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NVIDIA Leads the Mag 7 Surge NVIDIA Today
$205.19 +0.32 (+0.16%)
As of 04:00 PM Eastern
52-Week Range$140.85▼
$236.54Dividend Yield0.49%
P/E Ratio31.42
Price Target$305.67
The first and loudest rotation Benedict is tracking is into the Magnificent 7—Apple NASDAQ: AAPL, Microsoft NASDAQ: MSFT, Alphabet NASDAQ: GOOGL, NVIDIA NASDAQ: NVDA, Amazon NASDAQ: AMZN, Meta NASDAQ: META, and Tesla NASDAQ: TSLA. These names, which had been struggling for much of the early year, absorbed a massive wave of inflows during the recent rally and powered the Nasdaq to fresh highs.
The standout is NVIDIA. Benedict watched the stock fall from around $185 to roughly $165 at its low, then recover to over $200 in just two weeks—adding trillions in market cap at a pace he describes as unlike anything he's seen. "That's the big one," he says. "That's the one that's outperforming everything."
With Mag 7 earnings still ahead—NVIDIA traditionally closes out the earnings season—Benedict thinks results will be solid enough to support prices, with the caveat that the quarter after this one may start reflecting economic headwinds. For now, bulls are in control, and he's not fighting that.
D.R. Horton and the Rate-Driven Housing Setup D.R. Horton Today
$154.00 -0.43 (-0.28%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$119.54▼
$184.54Dividend Yield1.17%
P/E Ratio14.43
Price Target$168.54
The second sector seeing real money flow is housing—and Benedict's read here is longer-term than just the recent momentum. He believes the market is underweighting a significant catalyst: a likely change in Federal Reserve leadership. With Kevin Warsh widely expected to step in as the next Fed Chair, Benedict anticipates a pivot toward lower interest rates that could unleash pent-up housing demand.
"I think that will cause a boom in the housing market," he says. From his vantage point in South Florida, where he says he's watched 20 new high-rises go up in his town alone, the demand isn't theoretical—it's concrete.
His preferred vehicle is D.R. Horton NYSE: DHI, the largest-cap homebuilder in the sector. The logic is simple: when expressing a sector view, he wants the biggest and most liquid name.
DHI captures the housing thesis cleanly without the idiosyncratic risk of smaller builders. He acknowledges supply chain pressures could create headwinds, but believes the demand response to lower rates will more than offset them.
Oracle: The Software Sector's Undervalued Rebound Oracle Today
$184.01 -0.09 (-0.05%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$134.57▼
$345.72Dividend Yield1.09%
P/E Ratio31.56
Price Target$268.27
The third area—and the one Benedict seems most energized about—is enterprise software, specificallyOracle NYSE: ORCL. While Mag 7 names have largely reclaimed their losses, Oracle is still a long way from its all-time highs despite a meaningful bounce off its lows.
That gap is the opportunity, in Benedict's view. Oracle's AI infrastructure deals—including significant contracts tied to OpenAI—were the catalyst for its original run to near-trillion-dollar market cap territory. When sentiment turned and the market grew skeptical about AI CapEx spending, Oracle pulled back hard.
Benedict thinks that skepticism went too far. "The market has misjudged what these companies can actually do," he says. He sees Oracle as operating in the same AI infrastructure playing field as the Mag 7, but priced as if it isn't. Compared to fully-valued Mag 7 names, software stocks like Oracle have more room to run—even if the path is bumpy.
The risk is real: if the broader market corrects, software won't be immune. And Benedict is candid about the longer-term AI question, noting that no one knows exactly how AI monetization plays out. The dot-com era is a reference point he keeps close.
But for investors willing to hold through volatility, the setup in software stocks—beaten down, under-owned, and sitting on legitimate AI revenue relationships—is where Benedict sees the most asymmetric upside of the three sectors.
The money is moving. The question is whether you're positioned in front of it or watching from behind.
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B. Metzler seel. Sohn & Co. AG cut its stake in D.R. Horton, Inc. (NYSE:DHI – Free Report) by 40.8% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 9,260 shares of the construction company’s stock after selling 6,376 shares during the period. B. Metzler seel. Sohn & Co. AG’s holdings in D.R. Horton were worth $1,334,000 as of its most recent SEC filing.
Several other large investors have also recently added to or reduced their stakes in DHI. Capital World Investors grew its stake in shares of D.R. Horton by 159.8% in the third quarter. Capital World Investors now owns 30,252,842 shares of the construction company’s stock worth $5,126,995,000 after purchasing an additional 18,607,545 shares in the last quarter. Capital International Investors bought a new position in shares of D.R. Horton in the third quarter worth $395,179,000. Boston Partners bought a new position in shares of D.R. Horton in the third quarter worth $274,784,000. Viking Global Investors LP grew its stake in shares of D.R. Horton by 108.3% in the second quarter. Viking Global Investors LP now owns 2,827,032 shares of the construction company’s stock worth $364,461,000 after purchasing an additional 1,469,978 shares in the last quarter. Finally, TD Asset Management Inc grew its stake in shares of D.R. Horton by 769.3% in the third quarter. TD Asset Management Inc now owns 893,226 shares of the construction company’s stock worth $151,375,000 after purchasing an additional 790,475 shares in the last quarter. 90.63% of the stock is owned by institutional investors and hedge funds.
Insiders Place Their Bets In related news, SVP Aron M. Odom sold 260 shares of the firm’s stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $167.55, for a total transaction of $43,563.00. Following the completion of the transaction, the senior vice president owned 6,457 shares of the company’s stock, valued at $1,081,870.35. This trade represents a 3.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.66% of the stock is owned by corporate insiders.
Analyst Upgrades and Downgrades Several research analysts have recently issued reports on the company. Seaport Research Partners reissued a “neutral” rating on shares of D.R. Horton in a research note on Tuesday, April 7th. Zacks Research raised D.R. Horton from a “strong sell” rating to a “hold” rating in a research note on Friday, March 27th. Citizens Jmp reissued a “market perform” rating on shares of D.R. Horton in a research note on Wednesday, January 7th. Wells Fargo & Company increased their price target on D.R. Horton from $147.00 to $170.00 and gave the stock an “equal weight” rating in a research note on Wednesday, April 22nd. Finally, Bank of America set a $158.00 price target on D.R. Horton in a research note on Wednesday, January 21st. Four investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, D.R. Horton currently has a consensus rating of “Hold” and an average price target of $168.54.
Get Our Latest Analysis on D.R. Horton
D.R. Horton Trading Up 0.0% Shares of DHI stock opened at $159.95 on Monday. The stock has a 50-day simple moving average of $148.13 and a 200 day simple moving average of $150.48. D.R. Horton, Inc. has a fifty-two week low of $114.17 and a fifty-two week high of $184.54. The stock has a market capitalization of $45.36 billion, a P/E ratio of 14.99, a P/E/G ratio of 2.54 and a beta of 1.44. The company has a quick ratio of 0.97, a current ratio of 6.46 and a debt-to-equity ratio of 0.27.
D.R. Horton (NYSE:DHI – Get Free Report) last announced its earnings results on Tuesday, April 21st. The construction company reported $2.24 earnings per share for the quarter, beating the consensus estimate of $2.15 by $0.09. D.R. Horton had a return on equity of 12.94% and a net margin of 9.51%.The business had revenue of $7.56 billion during the quarter, compared to analysts’ expectations of $9.22 billion. During the same quarter last year, the business posted $2.58 earnings per share. The company’s quarterly revenue was down 2.3% on a year-over-year basis. On average, sell-side analysts expect that D.R. Horton, Inc. will post 10.53 earnings per share for the current fiscal year.
D.R. Horton Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, May 14th. Investors of record on Thursday, May 7th will be paid a dividend of $0.45 per share. The ex-dividend date of this dividend is Thursday, May 7th. This represents a $1.80 annualized dividend and a yield of 1.1%. D.R. Horton’s dividend payout ratio (DPR) is currently 16.87%.
D.R. Horton News Roundup Here are the key news stories impacting D.R. Horton this week:
Positive Sentiment: UBS raised its price target on D.R. Horton to $206 and moved to a “buy” rating, citing upside vs. the current price — a sizable analyst upgrade that can attract buyers. UBS raises price target to $206 Positive Sentiment: Truist published a forecast calling for strong price appreciation in DHI, adding institutional support to the bullish case. Truist Forecasts Strong Price Appreciation for D.R. Horton Positive Sentiment: Market commentary highlights a rotation of capital into housing names (DHI cited as a preferred large-cap homebuilder) on a potential future Fed pivot and rate easing—a thematic flow that can lift DHI relative to smaller builders. Neutral Sentiment: Brokerage consensus on DHI remains around “Hold” (average recommendation), suggesting mixed analyst conviction despite some buy-side upgrades. D.R. Horton Receives Average “Hold” from Brokerages Neutral Sentiment: The broader Q1 earnings backdrop is being described as generally positive, which could support cyclicals like homebuilders if the tone holds. Earnings Picture Remains Positive: A Closer Look Negative Sentiment: Peer results are weak: NVR and PulteGroup reported Q1 misses and declining revenues/settlements — signals that housing demand and margins remain under pressure and can weigh on DHI’s near-term outlook. NVR’s Q1 Earnings Miss PulteGroup Q1 Miss Negative Sentiment: D.R. Horton’s latest quarter showed an EPS beat but a revenue shortfall (revenues down year-over-year), which markets often penalize in a rate-sensitive sector where demand and backlog trends matter. (Company Q1 results and guidance context.) D.R. Horton Profile (Free Report)
D.R. Horton, Inc is a national homebuilding company that designs, constructs and sells new residential properties across the United States. The company’s core operations focus on building single-family detached homes, townhomes and condominiums for a range of buyer segments. In addition to home construction and sales, D.R. Horton provides complementary services through subsidiaries that support the mortgage, title and closing processes for its customers, enabling integrated transaction workflows from inventory development to home delivery.
Founded in 1978 by Donald R.
Recommended Stories Five stocks we like better than D.R. Horton Want to see what other hedge funds are holding DHI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for D.R. Horton, Inc. (NYSE:DHI – Free Report).
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On May 12, the April reading of the Consumer Price Index (CPI) will be released. Polymarket predicts the number is most likely to come in at 3.7% or 3.8%. That "more of the same" result would support the Federal Reserve leaving interest rates unchanged.
With energy prices surging on Middle East tensions, it would seem rate cuts are firmly off the table. Unless there's a downside surprise. Incoming Federal Reserve chair Kevin Warsh has aligned with a narrative that productivity gains from artificial intelligence (AI) will be a "significant deflationary force"—one that could offset energy-driven pressures and put rate cuts back on the table.
Homebuilder and housing-related stocks are hoping for that outcome. While much consumer attention focuses on the lower leg of the K-shaped economy, the housing market is acutely tied to the upper leg—including retirees looking to trade down and first-time buyers, both squeezed by a lack of supply.
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Lower mortgage rates won't be an overnight fix. But if viewed as the first of several cuts over 18–24 months, it could give these stocks real momentum. Supporting the idea that markets are always forward-looking, several housing stocks are getting analyst price target upgrades.
D.R. Horton Uses Volume to Outperform in a Tough Housing MarketTo go with a housing metaphor, D.R. Horton Inc. NYSE: DHI is the best house in a bad neighborhood. DHI is bucking the sector trend, up over 20% in the last 12 months.
D.R. Horton Today
$154.00 -0.43 (-0.28%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$119.54▼
$184.54Dividend Yield1.17%
P/E Ratio14.43
Price Target$168.54
It comes down to strategy. D.R. Horton is the largest U.S. homebuilder by volume. That’s largely due to its “pace over price” strategy. The company offers incentives to keep its inventory moving. It comes at the expense of margin, but in a high-rate market, volume is more important than price. Plus, the company has in-house mortgage and financial service divisions that can allow it to fund rate buydowns directly.
Investors should keep their short-term expectations in check. DHI has been range-bound over the last six months, and it’s only up about 1% in 2026 as of this writing. It’s also trading at about 14x earnings, which is higher than its historic average. But D.R. Horton is likely to get a significant bounce on a market resurgence. It also pays a safe dividend that has been increasing at an average annual rate of over 17% in the last three years.
Lennar’s Asset-Light Strategy Will Be in Focus If Rates FallLennar Corp. NYSE: LEN represents the other side of homebuilder stocks. LEN is down 20% in the last 12 months and over 15% in 2026.
The hope comes from the company’s ongoing pivot to an asset-light model. The company offloads land development to third-party entities to reduce balance sheet exposure.
Lennar Today
$90.03 -4.92 (-5.18%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$81.18▼
$144.24Dividend Yield2.22%
P/E Ratio12.94
Price Target$97.27
That was the part of the company's Q1 2026 earnings report that analysts liked. The problem was the forward guidance, which said mortgage rates would stay around 6.2% to 6.4%. That, along with other headwinds Lennar cited, is keeping institutional investors cool on the stock.
Analysts have been lowering their price targets for LEN, but the consensus price target of $99.87 is 14% above the stock’s price as of this writing. And that may not be capturing the expected earnings growth of around 29%.
LEN trades at around 12x earnings, which is a discount to the broader market, but a premium to its historic average.
Home Depot Is a Housing Recovery PlayHome Depot NYSE: HD is the valuation play of this group. At around 22x earnings, it’s trading at a discount to both the S&P 500 and its historic average. However, critics may say that the stock looks cheap for a reason. Total sales and adjusted earnings per share were both down year over year in 2025.
Home Depot Today
HD
Home Depot
$328.37 +2.36 (+0.72%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$289.10▼
$426.75Dividend Yield2.84%
P/E Ratio23.32
Price Target$371.36
This reflects the fact that Home Depot’s business is adjacent to an active housing market. For a couple of years, the company benefited from a surge in remodeling. And a recent UBS survey showed that the home improvement market may be improving.
That would confirm the broader narrative that the company’s results are fixable if it can get some assistance from the housing market. For now, analysts are trending bearish and lowering their price targets. Still, the consensus price target of $410.86 implies a move of over 30% in the next 12 months.
Home Depot reports its Q1 2026 earnings on May 19. At that point, investors will be listening for the company’s forward guidance, which has been pointing to a potential recovery in the second half of 2026.
Should You Invest $1,000 in D.R. Horton Right Now?Before you consider D.R. Horton, you'll want to hear this.
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ARLINGTON, Texas--(BUSINESS WIRE)--As previously announced, D.R. Horton, Inc. (NYSE:DHI), America’s Builder, will release financial results for its third quarter ended June 30, 2026 on Tuesday, July 21, 2026 before the market opens. The Company will host a conference call that morning at 8:30 a.m. Eastern Time (ET). The dial-in number is 888-506-0062. When calling, please reference access code 832533. Participants are encouraged to call in five minutes before the call begins (8:25 a.m. ET). The call will also be webcast from the Company’s website at investor.drhorton.com.
A replay of the call will be available after 12:30 p.m. ET on Tuesday, July 21, 2026 at 877-481-4010. When calling, please reference replay passcode 54062. The teleconference replay will be available through July 28, 2026. The webcast replay will be available from the Company’s website at investor.drhorton.com through November 15, 2026.
About D.R. Horton, Inc.
D.R. Horton, Inc., America’s Builder, has been the largest homebuilder by volume in the United States since 2002 and has closed more than 1.2 million homes in its 47-year history. D.R. Horton has operations in 126 markets in 36 states across the United States and is engaged in the construction and sale of high-quality homes through its diverse product portfolio with sales prices generally ranging from $200,000 to over $1,000,000. The Company also constructs and sells both single-family and multi-family rental properties. During the twelve-month period ended March 31, 2026, D.R. Horton closed 83,832 homes in its homebuilding operations, in addition to 3,593 single-family rental homes and 2,359 multi-family rental units in its rental operations. D.R. Horton also provides mortgage financing, title services and insurance agency services for its homebuyers and is the majority-owner of Forestar Group Inc., a publicly traded national residential lot development company.
As previously announced, [url="]D.R. Horton, Inc.[/url] (NYSE: DHI), America's Builder, will release financial results for its third quarter ended June 30, 2026
On May 20, 2026, D.R. Horton Inc (DHI) shares rose 5.2% to $141.76. The stock has experienced a 52-week range between $114.17 and $184.55, reflecting significan
A month has gone by since the last earnings report for D.R. Horton (DHI - Free Report) . Shares have lost about 12.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is D.R. Horton due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for D.R. Horton, Inc. before we dive into how investors and analysts have reacted as of late.
D.R. Horton's Q2 Earnings Beat on Better Order MomentumD.R. Horton delivered second-quarter fiscal 2026 results with earnings beating the Zacks Consensus Estimate but revenues missing the same. The quarter was marked by an 11% jump in net sales orders and progress in tightening finished inventory, even as affordability constraints kept incentives elevated.
DHI Margins Stayed Resilient Despite Earnings DeclineThe company’s earnings of $2.24 per share were down 13.2% from $2.58 a year ago but 4.2% above the Zacks Consensus Estimate of $2.15. Total revenues (Homebuilding, Forestar, Rental and Financial Services) were $7.56 billion, down 2.3% year over year and 1.3% below the consensus mark of $7.66 billion.
Net income attributable to D.R. Horton fell 20% year over year to $647.9 million. Consolidated income before taxes was $867.4 million on $7.6 billion of revenues, producing a pre-tax profit margin of 11.5% for the quarter. Management highlighted that the pre-tax profit margin finished above the high end of its guidance range. The company also noted that the fiscal second-quarter consolidated pre-tax profit margin and home sales gross margin included a 40-basis-point benefit tied to a favorable litigation outcome and lower warranty costs. Against a backdrop of affordability pressure and cautious consumer sentiment, the ability to remain within its expected profitability range was a key takeaway from the release.
D.R. Horton’s Core Homebuilding Trends ImprovedHomebuilding revenue declined 2% year over year to $7.1 billion, while homes closed increased 1% to 19,486. Home sales revenues totaled $7.0 billion, supported by steady closing volumes across the footprint.
Demand indicators were firmer. Net sales orders rose 11% to 24,992 homes, with an order value of $9.2 billion. The cancellation rate was 16%, which was in line with the prior-year quarter. Management said incentives are expected to remain elevated in fiscal 2026, with levels dependent on demand, mortgage rates and broader market conditions. Alongside the order improvement, the company emphasized its actions to reduce unsold completed homes by 35% from a year ago, reflecting tighter execution around inventory and sales pace.
The quarter also showed contributions outside homebuilding. Rental operations generated $211.8 million of revenues (down from $236.6 million a year ago) from the sale of 566 single-family rental homes and 216 multifamily rental units, producing pre-tax income of $12.3 million. Forestar posted $374.3 million of revenues (up from $351 million a year ago) on 2,938 lots sold, with pre-tax income of $43.9 million. Financial Services delivered $192.8 million of revenues (down from $212.9 million a year ago) and $51.7 million of pre-tax income, highlighting the earnings power of the captive mortgage and related offerings.
DHI Kept Returning Cash While Maintaining LiquidityD.R. Horton continued to prioritize shareholder returns during the quarter. The company repurchased 6 million shares for $903.6 million and paid $129.7 million in cash dividends. Common shares outstanding as of March 31, 2026, were 284.9 million, down 8% from a year ago, and remaining repurchase authorization totaled $1.7 billion.
D.R. Horton’s cash, cash equivalents and restricted cash totaled $1.97 billion as of March 31, 2026, compared with $3.03 billion at the end of fiscal 2025. Yet, the balance sheet reflected solid liquidity. Total liquidity was $6 billion at the end of the quarter, and the debt-to-total capital ratio was 21.7%. For the first six months of fiscal 2026, cash provided by operations was $441.5 million, up from $210.5 million a year ago. Management also noted it has $600 million of homebuilding senior notes maturing within the next 12 months.
Profitability metrics over the trailing 12 months remained positive. Return on equity was 13.2% and return on assets was 8.9%, underscoring that the business is still generating meaningful returns even with lower year-over-year earnings.
D.R. Horton Updated Fiscal 2026 Targets and Operating PostureD.R. Horton updated fiscal 2026 consolidated revenue guidance to $33.5-$34.5 billion compared with the prior expectation of $33.5-$35 billion. This compares with $34.25 billion in fiscal 2025. The company now expects homebuilding closings of 86,000-87,500 homes compared with the earlier guidance of 86,000-88,000. This compares with 84,863 in fiscal 2025. The company reiterated several framework assumptions, including an income tax rate of about 24.5% and an operating cash flow of at least $3 billion.
Capital allocation targets were reaffirmed as well. Management continues to expect share repurchases of approximately $2.5 billion and dividend payments of approximately $500 million in fiscal 2026. Operationally, the company closed the quarter with 38,200 homes in inventory, of which 22,900 were unsold. Unsold completed homes totaled 5,500, including 800 that had been completed for more than six months, a metric investors often watch to gauge the pace of absorption and the potential need for additional incentives.
On the lot position, D.R. Horton reported 575,300 total lots owned and controlled as of March 31, 2026, with 23% owned and 77% controlled through purchase contracts. The company also noted that lots controlled included approximately 41,000 lots owned or controlled by Forestar, supporting its strategy of maintaining a flexible, capital-light pipeline in a shifting demand environment.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.
VGM ScoresCurrently, D.R. Horton has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, D.R. Horton has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
D.R. Horton (DHI - Free Report) ended the recent trading session at $147.81, demonstrating a +1.52% change from the preceding day's closing price. This change outpaced the S&P 500's 0.02% gain on the day. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.07%.
Heading into today, shares of the homebuilder had lost 6.91% over the past month, lagging the Construction sector's loss of 0.55% and the S&P 500's gain of 5.12%.
The investment community will be closely monitoring the performance of D.R. Horton in its forthcoming earnings report. The company is scheduled to release its earnings on July 21, 2026. The company is forecasted to report an EPS of $2.98, showcasing a 11.31% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $9.18 billion, down 0.49% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.57 per share and revenue of $33.86 billion, indicating changes of -8.64% and -1.14%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for D.R Horton. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.59% lower. D.R. Horton presently features a Zacks Rank of #3 (Hold).
Investors should also note D.R. Horton's current valuation metrics, including its Forward P/E ratio of 13.77. This signifies a premium in comparison to the average Forward P/E of 13.76 for its industry.
It is also worth noting that DHI currently has a PEG ratio of 2.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders industry currently had an average PEG ratio of 1.73 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 209, finds itself in the bottom 15% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
In the latest close session, D.R. Horton (DHI - Free Report) was down 2.31% at $144.50. This change lagged the S&P 500's 0.74% loss on the day. Meanwhile, the Dow experienced a drop of 1.21%, and the technology-dominated Nasdaq saw a decrease of 0.89%.
Coming into today, shares of the homebuilder had gained 0.98% in the past month. In that same time, the Construction sector lost 1.64%, while the S&P 500 gained 5.39%.
The upcoming earnings release of D.R. Horton will be of great interest to investors. The company's earnings report is expected on July 21, 2026. The company's upcoming EPS is projected at $2.98, signifying a 11.31% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $9.18 billion, indicating a 0.49% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.57 per share and revenue of $33.86 billion, which would represent changes of -8.64% and -1.14%, respectively, from the prior year.
Any recent changes to analyst estimates for D.R. Horton should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. D.R. Horton is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, D.R. Horton is currently trading at a Forward P/E ratio of 13.99. This represents no noticeable deviation compared to its industry average Forward P/E of 13.99.
One should further note that DHI currently holds a PEG ratio of 2.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders industry had an average PEG ratio of 1.85 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
