D.R. Horton, Inc. · DHI · FY2025 Q3 · Calendar Q3 2025

D.R. Horton beat Q3 expectations, but incentives pressure margins

The quarter supports a constructive but qualified view: earnings growth is backed by strong cash generation, inventory discipline, mortgage financing, and rental operations, while rising incentives and affordability pressure are important offsets. The evidence supports resilience rather than an unqualified acceleration.

Reported Before market openNYSEConsumer Cyclical $38.25B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $3.36 Consensus $2.94
EPS surprise +14.3% Reported versus consensus
Reported revenue $9.23B Consensus $8.77B
Revenue surprise +5.1% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +17.0% Event window
SPY move +0.0% Same window
Abnormal move +17.0% Stock minus SPY
Volume 3.0× Versus trailing sessions
Subsequent drift +9.5% Up to 20 sessions
DHISPY benchmark

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Transcript intelligence

What changed

Compared with the prior quarter, reported performance improved to a Q3 EPS beat and 21.8% home-sales gross margin, while management raised the planned FY2025 repurchase range to $4.2-$4.4 billion. The main negative change is clearer near-term margin pressure from incentives and a planned moderation in community-count growth.

Guidance delta

Management maintained FY2025 home-sales gross margin guidance of 21%-21.5% and outlined Q4 fiscal 2025 revenue of $9.1-$9.6 billion with 23,500-24,000 homes closed. Q4 gross margin is expected to decline about 50 basis points as incentives rise.

Key takeaways

  • Q3 EPS was $3.36, while home-sales gross margin was 21.8%, above guidance.
  • Strong cash generation of $2.9 billion year to date supports a planned $4.2-$4.4 billion FY2025 share repurchase.
  • Rental and mortgage operations are contributing materially, while community-count growth is expected to moderate.
  • The key tension is solid demand and capital efficiency versus rising incentives, affordability constraints, and margin pressure.

Management priorities

  • Improve inventory efficiency and preserve returns on inventory.
  • Expand smaller-footprint home plans for first-time buyers.
  • Moderate community-count growth to high-single-digit or mid-single-digit rates.
  • Continue developing rental operations and using Four Star and third-party developers for lot supply.
  • Execute the FY2025 share-repurchase program and support buyers through mortgage products.

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Earnings History

Estimate Beat Miss Match
DHI EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q2 '24 estimate $3.06 Q2 '24 actual $3.52, beat Q3 '24 estimate $3.75 Q3 '24 actual $4.10, beat Q4 '24 estimate $4.17 Q4 '24 actual $3.92, miss Q3 '25 estimate $2.94 Q3 '25 actual $3.36, beat Q4 '25 estimate $3.27 Q4 '25 actual $3.04, miss Q1 '26 estimate $1.93 Q1 '26 actual $2.03, beat Q2 '26 estimate $2.15 Q2 '26 actual $2.24, beat Q3 '26 estimate $3.02 Q3 '26 actual $3.20, beat Q4 '26 estimate $3.02 Q1 '27 estimate $2.17 Q2 '27 estimate $2.46 Q3 '27 estimate $3.36
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Analyst Consensus ?

ConsensusHold52 ratings
Bullish2446.1%
Neutral2548.1%
Bearish35.8%

Analyst 52W Price Targets

$136.75Previous close
$61Low
$143.05Average
$210High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 7, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Barclays Equal Weight Equal WeightMaintainOct 6, 2026
Evercore ISI Group In Line In LineMaintainSep 25, 2026
Keefe, Bruyette & Woods Market Perform Market PerformMaintainSep 22, 2026
Truist Securities Hold HoldMaintainSep 16, 2026
Wells Fargo Equal Weight Equal WeightMaintainSep 11, 2026
RBC Capital Underperform UnderperformMaintainJul 22, 2026
Zelman & Assoc Outperform NeutralUpgradeJul 7, 2026
Citigroup Neutral NeutralMaintainApr 23, 2026
UBS Buy BuyMaintainApr 22, 2026
Goldman Sachs Buy BuyMaintainApr 22, 2026
Seaport Global Neutral BuyDowngradeApr 7, 2026
Argus Research Buy BuyMaintainJan 23, 2026
B of A Securities Neutral NeutralMaintainJan 21, 2026
Citizens Market Perform Market OutperformDowngradeJan 7, 2026
Wedbush Neutral NeutralMaintainJul 23, 2025
JP Morgan Underweight UnderweightMaintainApr 21, 2025
JMP Securities Market Outperform Market OutperformMaintainApr 21, 2025
Raymond James Market Perform OutperformDowngradeNov 7, 2024
BTIG Buy BuyMaintainOct 30, 2024
Jefferies Hold HoldMaintainApr 19, 2024
Credit Suisse Neutral NeutralMaintainJul 21, 2023
Deutsche Bank Buy BuyMaintainJun 1, 2023
Wolfe Research Peer Perform OutperformDowngradeMar 22, 2023
Keybanc Overweight OverweightMaintainJan 26, 2023
Oppenheimer Perform PerformMaintainJan 19, 2023
Janney Capital Neutral NeutralMaintainJan 22, 2021
Susquehanna Positive NeutralUpgradeNov 11, 2020
CFRA Strong Buy HoldUpgradeMay 13, 2020
SunTrust Robinson Humphrey Hold BuyDowngradeFeb 26, 2020
Buckingham Research Buy BuyMaintainJul 31, 2019
Keefe Bruyette & Woods Market Perform OutperformDowngradeApr 22, 2019
Buckingham Buy BuyMaintainApr 16, 2019
Mizuho Buy NeutralUpgradeJan 23, 2019
Argus Buy BuyMaintainNov 16, 2018
Bank of America Buy BuyMaintainFeb 1, 2018
BTIG Research Buy BuyMaintainFeb 8, 2017
Stifel Nicolaus Buy BuyMaintainApr 22, 2016
Stifel Buy BuyMaintainApr 22, 2016
Sterne Agee CRT Neutral BuyDowngradeApr 22, 2016
Sterne Agee Neutral BuyDowngradeApr 22, 2016
FBN Securities Underperform Sector PerformDowngradeApr 18, 2016
MKM Partners Neutral NeutralMaintainJul 28, 2015
Morgan Stanley Equal Weight Equal WeightMaintainJan 15, 2015
Compass Point Buy BuyMaintainNov 12, 2014
ISI Group Strong Buy BuyUpgradeApr 25, 2014
S&P Capital IQ Hold SellUpgradeJan 28, 2014
CRT Capital Buy HoldUpgradeJul 29, 2013
Gilford Securities Buy BuyMaintainJan 9, 2013
Topeka Hold HoldMaintainDec 7, 2012
Williams Financial Buy BuyMaintainMay 17, 2012
Williams Capital Buy BuyMaintainMay 17, 2012
Guggenheim Neutral NeutralMaintainApr 23, 2012
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Named analyst price targets

Upside is calculated against the persisted previous close $136.75. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
BarclaysAnalyst unavailable$130$133.23 -4.9%Oct 6, 2026
Morgan StanleyAnalyst unavailable$151$136.65 +10.4%Oct 1, 2026
Evercore ISIAnalyst unavailable$166$140.35 +21.4%Sep 25, 2026
BTIGRyan Gilbert$174$139.25 +27.2%Sep 22, 2026
Wells FargoAnalyst unavailable$145$135.57 +6.0%Sep 11, 2026
BTIGAnalyst unavailable$184$143.52 +34.6%Jul 22, 2026
BarclaysAnalyst unavailable$141$148.85 +3.1%Jul 14, 2026
Goldman SachsSusan Maklari$190$162.2 +38.9%Apr 21, 2026
Truist FinancialAnalyst unavailable$140$144.51 +2.4%Apr 16, 2026
Truist FinancialJonathan Bettenhausen$155$152.61 +13.3%Mar 3, 2026
UBSAnalyst unavailable$163$149.1 +19.2%Jan 27, 2026
Argus ResearchChris Graja$185$154.55 +35.3%Jan 23, 2026
BTIGAnalyst unavailable$182$156.71 +33.1%Jan 21, 2026
BarclaysAnalyst unavailable$129$153.19 -5.7%Jan 21, 2026
Wells FargoAnalyst unavailable$158$153.19 +15.5%Jan 21, 2026
UBSJohn Lovallo$193$153.19 +41.1%Jan 20, 2026
Goldman SachsAnalyst unavailable$195$159.71 +42.6%Jan 13, 2026
UBSAnalyst unavailable$191$146.48 +39.7%Jan 6, 2026
Wells FargoSam Reid$155$146.48 +13.3%Jan 6, 2026
BarclaysMatthew Bouley$132$158.62 -3.5%Dec 8, 2025
Wells FargoSam Reid$180$158.62 +31.6%Dec 8, 2025
BTIGAnalyst unavailable$186$157.37 +36.0%Dec 1, 2025
UBSAnalyst unavailable$195$153.75 +42.6%Oct 29, 2025
Evercore ISIAnalyst unavailable$169$171.53 +23.6%Oct 7, 2025
RBC CapitalMike Dahl$117$149 -14.4%Jul 23, 2025
RBC CapitalAnalyst unavailable$105$120.76 -23.2%Apr 21, 2025
BTIGCarl Reichardt$150$117.54 +9.7%Apr 16, 2025
RBC CapitalMike Dahl$125$136.52 -8.6%Jan 10, 2025
RBC CapitalMike Dahl$145$169.29 +6.0%Oct 30, 2024
CitigroupAnthony Pettinari$185$167.32 +35.3%Oct 30, 2024
UBSJohn Lovallo$217$173.42 +58.7%Jul 19, 2024
JMP SecuritiesAaron Hecht$210$173.42 +53.6%Jul 19, 2024
BarclaysMatthew Bouley$200$173.42 +46.3%Jul 19, 2024
RBC CapitalMike Dahl$141$145.88 +3.1%Apr 19, 2024
BTIGCarl Reichardt$169$149.07 +23.6%Apr 15, 2024
BarclaysMatthew Bouley$186$159.42 +36.0%Apr 4, 2024
WedbushJay McCanless$130$161.88 -4.9%Apr 2, 2024
WedbushMatt Bryson$100$141.04 -26.9%Jan 29, 2024
Wells FargoSam Reid$123$104.93 -10.1%Oct 17, 2023
Goldman SachsSusan Maklari$131$103.66 -4.2%Oct 16, 2023
Goldman SachsAnalyst unavailable$98$96.4 -28.3%Jan 12, 2023
Raymond JamesBuck Horne$61$92.99 -55.4%Jan 9, 2023
BTIGAnalyst unavailable$101$83.56 -26.1%Dec 6, 2022
J.P. MorganAnalyst unavailable$100$81.62 -26.9%Nov 22, 2022
KeyBancKenneth Zener$84$72.44 -38.6%Sep 19, 2022
BTIGCarl Reichardt$92$78.23 -32.7%Aug 2, 2022
BarclaysMatthew Bouley$95$75.36 -30.5%Jul 26, 2022
BTIGCarl Reichardt$97$60.56 -29.1%Jun 20, 2022
BTIGAnalyst unavailable$104$70.09 -23.9%Apr 27, 2022
RBC CapitalMike Dahl$89$72.21 -34.9%Apr 27, 2022
J.P. MorganMichael Rehaul$82.5$72.51 -39.7%Apr 15, 2022
BarclaysMatthew Bouley$104$76.18 -23.9%Apr 3, 2022
Seaport GlobalMark Weintraub$115$98.27 -15.9%Jan 14, 2022
Goldman SachsSusan Maklari$119$97.29 -13.0%Dec 1, 2021
Raymond JamesBuck Horne$120$101.05 -12.2%Nov 17, 2021
Wells FargoDeepa Raghavan$115$96.83 -15.9%Nov 15, 2021
Bank of America SecuritiesRafe Jadrosich$120$94.56 -12.2%Nov 10, 2021
Evercore ISIStephen Kim$159$94.56 +16.3%Nov 10, 2021
WedbushJay McCanless$125$91.88 -8.6%Jul 26, 2021
Argus ResearchChris Graja$110$99.52 -19.6%Apr 26, 2021
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Company context

Snapshot as of publication

Established in Arlington, Texas, in 1978, D.R. Horton, Inc. operates as a prominent residential construction enterprise. The company's core business involves acquiring and preparing land, then constructing and marketing homes across a substantial portion of the United States. Its operations span 31 states and 98 distinct markets, covering the East, North, Southeast, South Central, Southwest, and Northwest regions. Under several well-known brand names, including D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes, the firm develops diverse housing types.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:55.686058+00:00
  3. Polygon adjusted daily market bars · 2026-10-07T07:40:42.158333+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-07T07:40:42.155467+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-07. For educational purposes only; not investment advice.