Q1 Results Top Forecasts as Demand Remains Resilient
D.R. Horton, Inc. (NYSE:DHI), a leading homebuilder in the United States, has reported its fiscal 2026 first-quarter earnings, showcasing notable achievements in both earnings per share (EPS) and revenue. The company has surpassed market expectations, indicating a strong start to the fiscal year.
In the first quarter of fiscal 2026, D.R. Horton, Inc. has demonstrated a strong performance, exceeding market expectations with an EPS of $2.03 compared to the anticipated $1.93. This $0.10 beat signifies the company’s efficacy in managing costs and optimizing operations amidst a challenging economic landscape. Additionally, D.R. Horton reported consolidated revenues of $6.9 billion, surpassing the expected $6.59 billion by $0.31 billion, marking a positive deviation from forecasts.
Despite a 30% decrease in net income attributable to D.R. Horton, amounting to $594.8 million, the company has managed to achieve a pre-tax profit margin of 11.6%. This margin includes a 40 basis point benefit from the recovery of prior period warranty costs. The company’s focus on cost management and operational efficiency has been pivotal in achieving these results.
Home sales revenues for the quarter were $6.5 billion on 17,818 homes closed, reflecting a decrease from the previous year. However, net sales orders increased by 3% to 18,300 homes, with an order value of $6.7 billion. This growth in sales orders indicates a positive outlook for future quarters, despite current market challenges such as affordability constraints and cautious consumer sentiment.
DHI Maintains 2026 Outlook and Shareholder Return Plans
Based on its first-quarter results and current market conditions, D.R. Horton has reiterated its fiscal 2026 guidance, projecting consolidated revenues between $33.5 billion and $35.0 billion. The company expects to close between 86,000 and 88,000 homes through its homebuilding operations, maintaining its leadership position in the industry.
The company also anticipates an income tax rate of approximately 24.5% and aims to generate at least $3.0 billion in consolidated cash flow from operations. D.R. Horton plans to return significant value to shareholders, with projected share repurchases of approximately $2.5 billion and dividend payments of around $500 million. This strategic capital allocation underscores the company’s commitment to enhancing long-term shareholder value.
Looking ahead, D.R. Horton remains optimistic about its ability to navigate market fluctuations, citing its strong liquidity, low leverage, and experienced operators as key factors in maintaining operational flexibility. The company is well-positioned to continue delivering value to homebuyers with its affordable product offerings and flexible lot supply, ensuring it meets market demand effectively throughout fiscal 2026.