D.R. Horton (DHI) Q4 2026 earnings summary

Executive summary

• Completed a 25th consecutive year as the largest U.S. homebuilder by volume; closed 84,202 homes and provided homes to more than 89,000 families through homebuilding and rental operations in FY26.

• FY26 revenue was $33.0B and net income was $2.9B, down 19% YoY; diluted EPS fell 13% to $10.11.

• Q4 net income was $741.8M and diluted EPS was $2.67, down 18% and 12% YoY, respectively; results included rental inventory impairments.

• Higher mortgage rates and cautious sentiment pressured demand; starts, incentives and pricing were adjusted to align inventory with sales.

Financial highlights

• Q4 consolidated revenue was $9.4B, pre-tax income $1.0B and pre-tax margin 10.8%; home sales revenue was $8.4B on 22,915 closings.

• FY26 consolidated pre-tax income was $3.9B with an 11.8% margin; home sales revenue was $30.6B on 84,202 closings.

• Q4 net orders fell 7% YoY to 18,619 homes, down 9% in value to $6.6B; cancellations were 23% versus 20% a year earlier.

• FY26 net orders increased 2% to 84,995 homes and were unchanged in value at $30.9B; cancellations were 19% versus 18% a year earlier.

• FY26 average closing price was $363.6K; 73% of homes closed were priced below $400K.

Outlook and guidance

• FY27 guidance: revenue of $30.0B–$32.0B and 79,000–84,000 homebuilding closings; operating cash flow expected at ~$3.5B.

• FY27 income tax rate is expected at ~25.5%; planned repurchases are ~$3.0B and dividends ~$500M.

• Q1 FY27 revenue guidance is $5.9B–$6.4B and closings 15,500–16,500; home sales gross margin is expected at 18.0%–18.5% and pre-tax margin at 7.0%–8.0%.

• Q1 FY27 operating cash flow is estimated at ~$130M; guidance is based on current market conditions.

• Incentives are expected to remain elevated, depending on market conditions; guidance reflects mortgage-rate and economic uncertainty.