The revenue miss and lowered guidance are the primary negatives, confirming that affordability constraints and elevated incentives are pressuring top-line growth. Monitor the Q4 conference call for commentary on demand trends, mortgage rate sensitivity, and whether incentive levels are stabilizing. The cancellation rate increase to 20% is a key risk to watch.
Price Chart
Executive Summary
D.R. Horton reported fiscal Q3 2026 EPS of $3.20, a 5% miss vs the $3.37 consensus, and revenue of $9.23B, a 9% miss vs the $10.09B consensus. Net income fell 12% YoY to $904.9M, and the company lowered its full-year revenue guidance to $32.5B-$33.0B (from $33.5B-$34.5B) and home closing guidance to 83,800-84,300 (from 86,000-87,500), signaling ongoing affordability headwinds and elevated incentives.
Key Financial Metrics
Key Facts
- EPS of $3.20 missed consensus of $3.37 by 5.0%
- Revenue of $9.23B missed consensus of $10.09B by 8.5%
- Net income fell 12% YoY to $904.9M
- Full-year revenue guidance lowered to $32.5B-$33.0B from $33.5B-$34.5B
- Home closing guidance lowered to 83,800-84,300 from 86,000-87,500
- Cancellation rate rose to 20% from 17% a year ago
- Homebuilding pre-tax income fell 10% YoY to $1.1B
- Pre-tax profit margin improved to 13.3% from 14.7% a year ago
- Repurchased 4.2M shares for $615.7M in the quarter
Financial Impact
EPS miss of $0.17 per share; revenue miss of $860M; full-year revenue guidance cut by $1.0B-$1.5B
Risk Factors
- Further deterioration in new home demand due to elevated mortgage rates and affordability constraints
- Continued high sales incentives compressing margins
- Rising cancellation rates (20% vs 17% last year) indicating buyer fatigue
- Potential for further guidance cuts if market conditions worsen
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000882184-26-000092 |
| Document: dhi-20260721.htm | 0000882184-26-000092 |
| Document: 0000882184-26-000092-index-headers.html | 0000882184-26-000092 |
| Document: 0000882184-26-000092-index.html | 0000882184-26-000092 |
| Document: 0000882184-26-000092.txt | 0000882184-26-000092 |
| 8-K Data (Synthetic) | 0000882184-26-000092 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 21, 2026 10w ago | 8-K | $143.52 $145.68 | ▼ −1.50% | ▲ +1.06% | $135.58 (+5.53%) |
May 12, 2026 20w ago | 8-K | $143.25 $146.71 | ▲ +2.42% | ▲ +4.14% | $135.58 (−5.35%) |
Apr 21, 2026 23w ago | 8-K | $161.87 $137.49 | ▲ +15.06% | ▲ +19.97% | $135.58 (+16.24%) |
Apr 20, 2026 23w ago | Court Ruling | $153.16 $137.39 | ▼ −10.30% | ▼ −14.50% | $135.58 (−11.48%) |
Feb 28, 2026 30w ago | Institutional Cluster | $154.26 $132.53 | ▼ −14.08% | ▼ −6.15% | $135.58 (−12.11%) |
US Market Status
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