D.R. Horton, Inc.
DHI · NYSE
Dec 2026
Next quarter
Expected to report Jan 19, 2027 — estimated from last year’s reporting date.
Consensus is $2.10 EPS for Dec 2026 across 16 estimates, ranging $1.76 to $2.58.
DHI Sep 2026
- 11.88%
- $3.03
- $2.67
- —
- —
Highlights
- EPS miss. Fourth-quarter diluted EPS was $2.67, 11.9% below the $3.03 consensus and down 12% from $3.04 a year earlier; net income attributable to D.R. Horton fell 18% to $741.8 million.
- Homebuilding pressure. Quarterly homebuilding revenue declined 2% year over year to $8.4 billion, while pre-tax income fell 11% to $891 million and its margin narrowed to 10.6% from about 11.7%.
- Demand weakened. Fourth-quarter net sales orders fell 7% to 18,619 homes and 9% in value to $6.6 billion; cancellations rose to 23% from 20%.
- Fiscal 2027 outlook. D.R. Horton expects $30 billion–$32 billion of revenue and 79,000–84,000 homebuilding closings, with incentives expected to remain elevated.
- Rental impairment. The rental segment posted a $25.3 million quarterly pre-tax loss, including $91.4 million of inventory impairments tied to nine multifamily projects.
- Full-year decline. Fiscal 2026 revenue was $33.0 billion, down 4%, and diluted EPS was $10.11, down 13%; homebuilding closings decreased 1% to 84,202.
- Cash and returns. Operating cash flow was $3.5 billion; the company returned $4.1 billion through $3.6 billion of repurchases and $513 million of dividends, and raised its quarterly dividend 11% to $0.50.
Analysis
D.R. Horton’s fiscal fourth quarter was weaker than the headline revenue figure suggests: revenue of $9.37 billion was down 3% from a year earlier but up about 2% from the June quarter, while diluted EPS of $2.67 missed the $3.03 consensus by 11.9%. EPS fell 12% year over year and 17% sequentially; attributable net income of $741.8 million was 18% lower than both the year-ago quarter’s $905.3 million and the prior quarter’s $904.9 million. The consolidated pre-tax margin was 10.8%, and the results included rental inventory impairments.
The central operating issue was softer housing demand amid higher mortgage rates and affordability constraints. Homebuilding closings fell 2% year over year to 22,915, orders declined 7% to 18,619 and cancellations increased to 23%. Homebuilding pre-tax income fell 11% to $891 million, with a 10.6% margin. For the full year, revenue declined 4% to $33.0 billion and diluted EPS fell 13% to $10.11. Management’s initial fiscal 2027 outlook calls for $30 billion–$32 billion of revenue and 79,000–84,000 homebuilding closings, while incentives are expected to remain elevated. Despite the earnings decline, operating cash flow was $3.5 billion and shareholder distributions totaled $4.1 billion.
Earnings and margins
- Quarterly result. Consolidated revenue was $9.37 billion, down 3.2% from $9.68 billion a year earlier and up about 1.5% from $9.23 billion in the June quarter. Net income attributable to D.R. Horton was $741.8 million versus $905.3 million a year ago and $904.9 million in the prior quarter.
- Per-share performance. Diluted EPS of $2.67 compared with $3.04 a year earlier and $3.20 in the June quarter, and missed the $3.03 analyst consensus by 11.9%. The earnings decline was steeper than the modest revenue contraction.
- Profitability. Consolidated pre-tax income was $1.01 billion and pre-tax margin was 10.8%. Homebuilding pre-tax income declined 11% to $891 million, with margin at 10.6%, down from roughly 11.7% in the year-ago quarter.
- Full year. Fiscal 2026 revenue fell 4% to $33.0 billion, net income attributable to D.R. Horton declined 19% to $2.89 billion, and diluted EPS decreased 13% to $10.11. Consolidated pre-tax margin was 11.8%.
Homebuilding demand
- Quarterly orders. Net sales orders fell 7% year over year to 18,619 homes and 9% in value to $6.64 billion. The cancellation rate increased to 23% from 20%, consistent with management’s description of more challenging demand conditions.
- Closings and backlog. Homebuilding closed 22,915 homes, down 2%, for $8.38 billion of revenue, also down 2%. Year-end backlog increased to 11,714 homes worth $4.46 billion, from 10,785 homes and $4.12 billion a year earlier.
- Inventory. The company had 28,200 homes in inventory at year end, including 17,700 unsold homes. Of those unsold homes, 8,800 were completed, including 600 that had been completed for more than six months.
- Fiscal-year trends. Homebuilding closed 84,202 homes, down 1%, and generated $30.7 billion of revenue, down 3%. Full-year net orders rose 2% to 84,995 homes, with order value essentially flat at $30.9 billion; the annual cancellation rate was 19%, versus 18% in fiscal 2025.
Fiscal 2027 outlook
- Revenue and closings. Initial guidance is for consolidated revenue of $30 billion–$32 billion and homebuilding closings of 79,000–84,000 homes, below fiscal 2026’s $33.0 billion of revenue and 84,202 closings at the midpoint of the ranges.
- Cash and capital plans. The company expects approximately $3.5 billion of operating cash flow, $3.0 billion of share repurchases and $500 million of dividend payments. It also expects an income tax rate of about 25.5%.
- Market assumptions. Management said higher mortgage rates, affordability limits and cautious consumer sentiment pressured demand in the fourth quarter. It expects incentives to remain elevated in fiscal 2027, with the level dependent on market conditions, and said it is adjusting pricing, incentives and starts market by market.
Rental and other segments
- Rental. Quarterly rental revenue was $647.1 million and the segment recorded a $25.3 million pre-tax loss, including $91.4 million of impairments on nine multifamily projects. Rental operations sold 509 single-family homes for $134.3 million and 2,182 multifamily units for $512.8 million.
- Full-year rental results. Revenue was $1.2 billion and pre-tax income was $18.2 million, including the same $91.4 million impairment charge. Year-end rental property inventory was $2.6 billion, of which $2.3 billion was multifamily.
- Forestar and financial services. Forestar generated quarterly revenue of $580.8 million and pre-tax income of $78.6 million on 5,004 lots sold. Financial services produced $219.2 million of revenue and $78.2 million of pre-tax income. For the year, their pre-tax income was $192.1 million and $258.1 million, respectively.
Cash and shareholder returns
- Operating cash flow and liquidity. Fiscal 2026 operating cash flow was $3.5 billion, compared with $3.42 billion in fiscal 2025. Year-end liquidity was $7.2 billion and debt to total capital was 20.8%; the company repaid $600 million of 1.3% notes at maturity in October 2026 and reported no other senior note maturities in fiscal 2027.
- Repurchases and dividends. D.R. Horton repurchased 24.0 million shares for $3.6 billion during fiscal 2026, reducing shares outstanding 8% to 271.4 million. It paid $513.3 million in dividends and had $4.7 billion remaining under its repurchase authorization.
- Dividend increase. The board raised the quarterly dividend 11% to $0.50 per share, payable November 19, 2026. Management said fiscal 2027 will mark the company’s thirteenth consecutive year of dividend growth.
