D.R. Horton (DHI) Q3 2026 earnings summary

Executive summary

• Q3 2026 net income was $904.9 million ($3.20 per diluted share) on $9.2 billion in revenues, with a pre-tax profit margin of 13.3%.

• Closed 23,983 homes in Q3, generating $8.7 billion in home sales revenue, with average closing price down 2% year-over-year to $362,900.

• Repurchased 4.2 million shares for $615.7 million and paid $127.1 million in dividends in Q3; total repurchases for nine months were 14.6 million shares for $2.2 billion and dividends of $388.3 million.

• Book value per share increased 5% year-over-year to $84.85; return on equity was 12.8%.

• 65% of mortgage company closings were to first-time homebuyers; 64% of buyers are first-time homebuyers.

Financial highlights

• Q3 consolidated pre-tax income was $1.23 billion, with a gross margin on home sales of 20.7%.

• Net income for Q3 was $904.9 million on $9.2 billion in consolidated revenues.

• SG&A expenses were 8.3% of revenues in Q3; for nine months, homebuilding SG&A was 9.0%.

• Debt to total capital stood at 23.0% at June 30, 2026.

• Return on equity (TTM) was 12.8%; return on assets was 8.5%.

Outlook and guidance

• FY2026 consolidated revenues expected between $32.5–$33.0 billion, with 83,800–84,300 homes closed.

• FY2026 home sales gross margin projected at 20.5–21.0%, pre-tax profit margin at 12.3–12.8%, and income tax rate at 25%.

• FY2026 cash flow from operations expected at least $3.0 billion; $2.5 billion in share repurchases and $500 million in dividends planned.

• Sales incentives expected to remain elevated through the remainder of fiscal 2026 and into 2027 due to affordability constraints and cautious consumer sentiment.