Keefe, Bruyette & Woods analyst Jade Rahmani maintained D.R. Horton with a Market Perform rating and lowered the price target to $167 from $175. This adjustment follows D.R. Horton's decision to reduce its fiscal 2026 sales outlook to $32.5 billion–$33.0 billion, down from the previous range of $33.5 billion–$34.5 billion, as affordability constraints and cautious consumer sentiment impact new home demand. The company reported fiscal third quarter earnings of $3.20 per share, beating the analyst consensus estimate of $3.06, while revenue of $9.227 billion slightly surpassed expectations. Despite the earnings beat, the reduced guidance reflects a challenging market environment where sales incentives are expected to remain elevated. For the fourth quarter, the company projects sales of $8.800 billion–$9.300 billion, compared to an analyst estimate of $10.203 billion.

Consolidated Financial Highlights

The following table summarizes key financial metrics for the third quarter and nine months ended June 30, 2026, compared to the prior year periods.

For the first nine months of fiscal 2026, net income attributable to D.R. Horton decreased 20% to $2.1 billion, and diluted EPS decreased 13% to $7.45 on revenues of $23.7 billion. Cash provided by operations was $880.8 million during the nine months ended June 30, 2026. Total liquidity at quarter end was $6.1 billion, with a debt to total capital ratio of 23.0%. The company has $600 million of homebuilding senior notes maturing in the next twelve months. For the trailing twelve months ended June 30, 2026, return on equity was 12.8% and return on assets was 8.5%.

Homebuilding Segment Performance

Homebuilding revenue for the third quarter increased 1% to $8.7 billion, and homes closed increased 4% to 23,983 homes. Homebuilding pre-tax income decreased 10% to $1.1 billion, with a pre-tax profit margin of 12.3%. Net sales orders totaled 23,084 homes with an order value of $8.4 billion, flat with the same quarter of fiscal 2025. The cancellation rate for the quarter was 20%, compared to 17% in the prior year quarter. Home sales gross margin was 20.7%.

For the first nine months of fiscal 2026, homebuilding revenue decreased 3% to $22.3 billion, and homes closed of 61,287 were flat with the prior year period. Homebuilding pre-tax income decreased 19% to $2.5 billion, with a pre-tax profit margin of 11.4%. Net sales orders increased 5% to 66,376 homes, and sales order value increased 4% to $24.3 billion. At quarter end, the company had 38,000 homes in inventory, of which 23,300 were unsold, including 7,600 completed unsold homes. Homebuilding return on inventory for the trailing twelve months ended June 30, 2026 was 17.0%.

Non-Homebuilding Segment Results

The following table presents key metrics for the company's non-homebuilding segments for the third quarter and nine months ended June 30, 2026.

Rental operations revenue of $266.1 million in the third quarter came from the sale of 601 single-family rental homes and 339 multi-family rental units. Forestar sold 3,659 lots in the quarter. For the nine-month period, rental operations revenues of $587.4 million were generated from the sale of 1,564 single-family rental homes and 555 multi-family rental units.

Capital Returns and Balance Sheet

During the third quarter of fiscal 2026, D.R. Horton repurchased 4.2 million shares of common stock for $615.7 million and paid cash dividends of $127.1 million, returning a total of $742.8 million to shareholders. For the nine months ended June 30, 2026, the company repurchased a total of 14.6 million shares for $2.2 billion and paid $388.3 million in dividends. Common shares outstanding at June 30, 2026 totaled 280.7 million, down 6% from a year ago, with remaining stock repurchase authorization of $1.1 billion. Subsequent to quarter end, the company declared a quarterly cash dividend of $0.45 per share, payable on August 13, 2026 to stockholders of record on August 6, 2026. Book value per share increased 5% to $84.85.

Updated Fiscal 2026 Guidance

Based on results for the first nine months and current market conditions, D.R. Horton updated its fiscal 2026 guidance as follows.

Executive Chairman David Auld noted that affordability constraints and cautious consumer sentiment continue to impact new home demand, and the company expects sales incentives to remain elevated during the fourth quarter. The company plans to release financial results for its fourth quarter and fiscal year 2026 on Thursday, October 29, 2026.

Evercore ISI Group analyst Stephen Kim has maintained an In-Line rating for D.R. Horton, raising the price target to $177 from the previous $171. The adjustment reflects a revised outlook on the homebuilder's stock performance.

Rating and Target Details

The research note updates the investment stance on D.R. Horton, which trades on the NYSE under the ticker DHI. The In-Line rating suggests the stock is expected to perform in line with the broader market averages.

The revised price target indicates a specific valuation level that Evercore ISI Group associates with D.R. Horton's shares at this time.