D.R. Horton Revenue Reaches $9,371.3 Million in Fiscal Fourth Quarter
Key Facts
D.R. Horton reported revenue of $9,371.3 million for the fiscal fourth quarter ended September 30, 2026, compared with $9,677.8 million in the same period a year earlier. Results showed net income attributable to the company fell 18% to $741.8 million. Diluted earnings per share declined 12% to $2.67. Revenue exceeded analysts’ estimate of $9.07 billion, according to Investing.com, while adjusted earnings per share missed their consensus of $3.01. The company’s shares fell 4.2% after the results were announced, according to the same source.
Net home sales orders fell 7% to 18,619 homes during the quarter, while their value declined 9% to $6.6 billion. The cancellation rate, which measures canceled orders as a share of total orders, rose to 23% from 20% in the year-earlier quarter. The figures put weaker orders alongside declining revenue and earnings as the company faced a more difficult market. Executive Chairman David Auld said higher mortgage rates, affordability constraints and consumer caution continued to weigh on demand for new homes. He added that the company expects incentives to remain elevated during fiscal 2027.
For fiscal 2026, homebuilding revenue fell 3% to $30.7 billion, and the number of homes closed by the company declined 1% to 84,202. By contrast, full-year net sales orders rose 2% to 84,995 homes, highlighting the difference between the annual order trend and performance in the latest quarter. The company said fiscal 2026 was its 25th consecutive year as the largest homebuilder in the United States by volume. It added that it enabled more than 84,000 individuals and families to own homes during the year, including about 43,500 first-time buyers. These figures show the buyer base continued to expand during the year, alongside declines in homebuilding revenue and completed homes.
The company had 28,200 homes in inventory at the end of fiscal 2026, including 17,700 unsold homes. Of the unsold homes, 8,800 were completed, the company said. The figures come as management said housing market conditions became more difficult in the fourth quarter. In mortgage market data, the average rate on a 30-year fixed-rate mortgage was 7.32% on October 22, 2026, down from 7.40% the previous week. But it remained above the 6.19% average recorded a year earlier, according to Freddie Mac, as cited by the Associated Press.
D.R. Horton expects consolidated revenue of between $30.0 billion and $32.0 billion in fiscal 2027, and homebuilding operations are expected to close between 79,000 and 84,000 homes. These are initial forecasts for the new fiscal year, not a reduction to the fiscal 2026 revenue outlook. The company also expects operating cash flow of about $3.5 billion in 2027, with share repurchases of about $3.0 billion and dividend payments of about $500 million. The company set January 19, 2027, before the market opens, as the date for reporting first-quarter fiscal 2027 results. Investors will look to the new period’s results against the company’s outlook and the incentives management said would remain elevated.