D.R. Horton said affordability constraints and cautious consumer sentiment continue to limit new-home demand, and it expects sales incentives to remain elevated in fiscal 2026 as levels depend on demand, mortgage interest rates and other market conditions, according to D.R. Horton.
For the quarter ended March 31, 2026, net income attributable to D.R. Horton fell 20% to $647.9 million, and diluted earnings per share fell 13% to $2.24. Consolidated revenue was $7.6 billion and consolidated pre-tax income was $867.4 million, producing an 11.5% pre-tax profit margin. The company said the quarter’s consolidated pre-tax margin and home sales gross margin included a 40-basis-point benefit from a favorable litigation outcome and lower warranty costs.
In homebuilding, revenue fell 2% to $7.1 billion, while closings rose 1% to 19,486 homes. Homebuilding pre-tax income fell 19% to $757.9 million, and the segment pre-tax margin was 10.7%. Net sales orders rose 11% to 24,992 homes with an order value of $9.2 billion, and the cancellation rate was 16%, unchanged from a year earlier.
D.R. Horton said it reduced unsold completed homes by 35% from a year ago. At March 31, 2026, the company had 38,200 homes in inventory, including 22,900 unsold homes. It reported 5,500 of the unsold homes were completed, including 800 that had been completed for more than six months.
For the first six months of fiscal 2026, net income attributable to D.R. Horton fell 25% to $1.2 billion, and diluted earnings per share fell 18% to $4.27. Consolidated revenue was $14.4 billion and consolidated pre-tax income was $1.7 billion, for an 11.5% pre-tax profit margin. The company said the first-half consolidated pre-tax margin and home sales gross margin included a 50-basis-point benefit from a favorable litigation outcome and lower warranty costs.
Based on results through the first half and current market conditions, D.R. Horton updated fiscal 2026 guidance by keeping the low end of its consolidated revenue range at $33.5 billion and lowering the high end to $34.5 billion. The company also guided to homebuilding closings of 86,000 to 87,500 homes and reiterated an income tax rate of about 24.5%, consolidated operating cash flow of at least $3.0 billion, share repurchases of about $2.5 billion and dividend payments of about $500 million.
