New York, January 20, 2026, 09:47 EST
- D.R. Horton reported a 30% drop in quarterly net income, which fell to $594.8 million, while revenue declined to $6.9 billion
- Net sales orders climbed 3% to 18,300 homes, pushing the total order value up to $6.7 billion
- Shares dipped slightly in morning trading after earlier sharp swings in the session
D.R. Horton reported a 30% plunge in quarterly profit Tuesday, with affordability concerns holding back buyers. Still, the nation’s largest homebuilder exceeded forecasts and maintained its full-year guidance.
This update is crucial as builders rely more heavily on incentives to maintain sales flow, while investors focus on how this affects profit margins. D.R. Horton’s order trends often set the tone for the entire sector.
The company’s outlook and remarks on incentives come just before the spring selling season, when builders typically gain a better sense of demand. A weak season would probably lead to deeper discounts and squeeze profits further.
D.R. Horton reported net income of $594.8 million, or $2.03 per share, for the fiscal first quarter ended Dec. 31. Consolidated revenue dipped to around $6.9 billion, with home closings down 7% to 17,818 units. New net sales orders—contracts after cancellations—increased 3% to 18,300 homes, valued at $6.7 billion. The company stuck to its fiscal 2026 revenue forecast of $33.5 billion to $35.0 billion. Executive Chairman David Auld noted, “Affordability constraints and cautious consumer sentiment continue to impact new home demand,” adding, “We expect our sales incentives to remain elevated in fiscal 2026.” (D.R. Horton Investor Relations)
Analysts had pegged revenue at $6.66 billion and earnings at $1.92 per share, according to a TradingView report. That same report showed operating margin — profit after operating expenses — slipped to 10.6%, down from 13.6% a year ago. Backlog, representing homes under contract but not yet delivered, came in at $4.31 billion. (Tradingview)
A separate market summary pointed out that net sales orders climbed 3% to 18,300 homes, with the order value hitting $6.7 billion—marking a crucial demand indicator. (GuruFocus)
D.R. Horton’s drop in profit and revenue was seen as further evidence of a cooling housing market, with coverage highlighting weak buyer confidence and affordability issues as the key factors holding back demand. (Halifax Investments)
D.R. Horton shares slipped 0.2% to $155.59 in early trading, having fluctuated between $145.56 and $160.96 earlier in the session.
The company goes head-to-head with builders like Lennar and PulteGroup. Its results frequently serve as a proxy for the sector, particularly when it comes to entry-level demand.
Incentives that boost sales can quickly eat into margins if they linger longer than planned. Spring demand and shifts in mortgage rates will determine whether builders can dial back promotions or must keep footing the bill to drive traffic.
