D.R. Horton FY26 Q3: EPS beats, revenue flat, gross margin slips
Neutral: D.R. Horton beat consensus EPS by about 4.4% in FY2026 Q3, but revenue was flat at $9.23 billion and gross margin slipped to 23.3%. Read it as a company holding its ground on volume and cash return while price and incentives do the work — the earnings beat leaned on a 6% smaller share count, not on better homebuilding margins.
1 · Expected vs. Actual
Free preview belowEarnings of $3.20 per diluted share beat the $3.0659 consensus by roughly 4.4%, but were down 4.8% from $3.36 a year ago. Net income of $904.9 million fell 11.7% year over year, and the per-share figure was cushioned by a 6% smaller share count — 280.7 million shares — after 4.2 million shares were repurchased for $615.7 million in the quarter.
Revenue of $9.23 billion was essentially flat versus $9.23 billion a year ago, a marked slowdown from the growth shown earlier in the fiscal year. Home closings rose 4% to 23,983 homes and home sales revenue rose 1% to $8.68 billion, but rental property sales fell to $266.1 million from $380.7 million and financial services revenue dipped to $220.7 million, pulling the consolidated total back to flat.
D.R. Horton set full-year fiscal 2026 consolidated revenue guidance at $32.5 billion to $33.0 billion, with 83,800 to 84,300 home closings and an income tax rate of approximately 25.0%. Nine-month revenue was $23.67 billion on 61,287 closings, which leaves the fourth quarter implied at roughly $8.8 billion to $9.3 billion. Reiterated guidance included operating cash flow of at least $3.0 billion, approximately $2.5 billion of share repurchases and dividend payments of approximately $500 million.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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