Overview
- D.R. Horton reported third-quarter EPS of $3.20 and revenue of $9.2 billion, topping analyst expectations on results released Tuesday.
- The company cut its full-year 2026 consolidated revenue guidance to $32.5 billion–$33.0 billion from $33.5 billion–$34.5 billion as it updates investor outlooks.
- Home-sales gross margin was 20.7% for the quarter, which beat Street estimates but fell from 21.8% a year earlier, reflecting margin compression.
- Management said affordability pressures have flattened orders and lifted the cancellation rate to 20%, leading to higher incentives such as mortgage rate buydowns and smaller, lower-priced homes.
- Rising construction costs tied to persistent inflation and new tariffs are adding pressure on margins and could keep incentive spending high into the fourth quarter, a dynamic that may weigh on industry profitability and builder stock performance.