Homebuilder D.R. Horton's Q2 profit falls less than expected

D.R. Horton

21/04/2026 11:40

Overview

U.S. homebuilder's fiscal Q2 revenue was flat, meeting analyst expectations

Adjusted EPS for fiscal Q2 fell but beat analyst expectations

Company repurchased 6 mln shares for $903.6 mln and declared $0.45 dividend

Outlook

D.R. Horton sees fiscal 2026 consolidated revenues of $33.5 bln to $34.5 bln

Company expects to close 86,000 to 87,500 homes in fiscal 2026

D.R. Horton expects sales incentives to remain elevated in fiscal 2026, depending on demand and rates

Result Drivers

AFFORDABILITY CONSTRAINTS - Co said affordability issues and cautious consumer sentiment continued to impact new home demand

LITIGATION AND WARRANTY COSTS - Q2 profit margin benefited from a favorable litigation outcome and lower warranty costs

ELEVATED SALES INCENTIVES - Co expects sales incentives to remain elevated in fiscal 2026, with levels dependent on demand and mortgage interest rates

Company press release: ID:nBw3sN7Cma

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Meet
$7.6 bln
$7.6 bln (15 Analysts)
Q2 EPS
Beat
$2.24
$2.15 (18 Analysts)
Q2 Dividend
$0.45


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 14 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the homebuilding peer group is "buy."

Wall Street's median 12-month price target for D.R. Horton Inc is $160.00, about 4.3% above its April 20 closing price of $153.34

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)