Analyst Consensus ?
ConsensusHold52 ratings
Bullish2446.1%
Neutral2548.1%
Bearish35.8%
D.R. Horton, Inc. · DHI · FY2026 Q2 · Calendar Q2 2026
D.R. Horton beats Q2 EPS on cost wins; narrows FY2026 closings outlook
D.R. Horton enters the second half of FY2026 with demand that remains resilient — net sales orders rose 11% year over year and completed-home inventory fell 35% — reinforcing an affordability-led thesis that supports earnings over the next year. Yet margin pressure is real: sales incentives hold near 10% of revenue, the top end of FY2026 closings and revenue guidance was lowered, and the headline beat depended partly on a one-time litigation benefit. The stock rose about 6% on the print versus roughly flat SPY, but subsequently drifted lower (~-17%), suggesting the market questions how long elevated incentives and resilient demand can coexist before they erode earnings.
Reported Before market openNYSEConsumer Cyclical
$39.26B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$2.24
Consensus $2.15
EPS surprise
+4.2%
Reported versus consensus
Reported revenue
$7.56B
Consensus $7.55B
Revenue surprise
+0.1%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
+5.8%
Event window
SPY move
-0.7%
Same window
Abnormal move
+6.4%
Stock minus SPY
Volume
2.3×
Versus trailing sessions
Subsequent drift
-16.9%
Up to 20 sessions
DHISPY benchmark
Ask FN2 about DHI FY2026 Q2
Transcript, numbers and history already loaded
Why did DHI rise 5.8% after beating EPS estimates in FY2026 Q2?What changed in DHI's guidance and outlook in FY2026 Q2?Give me the bull and bear case for DHI after FY2026 Q2 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Management narrowed FY2026 guidance, pulling down the top end of the closings and revenue outlook. The headline beat was aided by a one-time ~40 basis-point margin benefit from a favorable litigation outcome and lower warranty costs rather than core pricing power, while net sales orders rose 11% year over year and unsold completed homes fell 35%. Incentives remain elevated at roughly 10% of revenue and are expected to stay high through the year.
Guidance delta
Management lowered the top end of its FY2026 revenue and closings outlook, signaling a more conservative full-year view. For Q3 FY2026 it guided revenue of $8.8-$9.3 billion and 23.5-24.0 thousand homes closed, with gross margin of 19.7%-20.2% and pretax margin of 12.2%-12.7%. Sales incentives remain elevated at roughly 10% of revenue and are expected to stay high through the year.
Key takeaways
- EPS of $2.24 beat the $2.15 estimate (about +4%); revenue of $7.56 billion was essentially in line with consensus.
- Pretax margin of 11.5% exceeded the high end of guidance, helped by a one-time ~40 basis-point benefit from a favorable litigation outcome and lower warranty costs.
- Net sales orders rose 11% year over year and unsold completed homes fell 35%, improving build-to-close cycle times by about a month.
- Sales incentives remain elevated at roughly 10% of revenue and are expected to stay high through the year.
- FY2026 closings and revenue guidance was narrowed, with the top end lowered on slower price growth and inventory considerations.
- Rental operations added $12 million of pretax income from 566 single-family and 216 multifamily rental homes, with inventory held near $3 billion.
Management priorities
- Manage inventory and start pace to market conditions while continuing lot acquisitions.
- Maintain roughly $2.5 billion of FY2026 share repurchases and a $0.45 dividend.
- Sustain affordability-focused pricing for first-time homebuyers (65% of mortgage closings).
- Deepen finished-lot sourcing through Forestar and third-party developers.
- Keep rental inventory near $3 billion to support capital-efficient growth.
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Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$140.07Current
$61Low
$146.47Average
$210High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Sep 25, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Keefe, Bruyette & Woods | Market Perform | Market Perform | Maintain | Sep 22, 2026 |
| Truist Securities | Hold | Hold | Maintain | Sep 16, 2026 |
| Wells Fargo | Equal Weight | Equal Weight | Maintain | Sep 11, 2026 |
| RBC Capital | Underperform | Underperform | Maintain | Jul 22, 2026 |
| Evercore ISI Group | In Line | In Line | Maintain | Jul 22, 2026 |
| Barclays | Equal Weight | Equal Weight | Maintain | Jul 14, 2026 |
| Zelman & Assoc | Outperform | Neutral | Upgrade | Jul 7, 2026 |
| Citigroup | Neutral | Neutral | Maintain | Apr 23, 2026 |
| UBS | Buy | Buy | Maintain | Apr 22, 2026 |
| Goldman Sachs | Buy | Buy | Maintain | Apr 22, 2026 |
| Seaport Global | Neutral | Buy | Downgrade | Apr 7, 2026 |
| Argus Research | Buy | Buy | Maintain | Jan 23, 2026 |
| B of A Securities | Neutral | Neutral | Maintain | Jan 21, 2026 |
| Citizens | Market Perform | Market Outperform | Downgrade | Jan 7, 2026 |
| Wedbush | Neutral | Neutral | Maintain | Jul 23, 2025 |
| JP Morgan | Underweight | Underweight | Maintain | Apr 21, 2025 |
| JMP Securities | Market Outperform | Market Outperform | Maintain | Apr 21, 2025 |
| Raymond James | Market Perform | Outperform | Downgrade | Nov 7, 2024 |
| BTIG | Buy | Buy | Maintain | Oct 30, 2024 |
| Jefferies | Hold | Hold | Maintain | Apr 19, 2024 |
| Credit Suisse | Neutral | Neutral | Maintain | Jul 21, 2023 |
| Deutsche Bank | Buy | Buy | Maintain | Jun 1, 2023 |
| Wolfe Research | Peer Perform | Outperform | Downgrade | Mar 22, 2023 |
| Keybanc | Overweight | Overweight | Maintain | Jan 26, 2023 |
| Oppenheimer | Perform | Perform | Maintain | Jan 19, 2023 |
| Janney Capital | Neutral | Neutral | Maintain | Jan 22, 2021 |
| Susquehanna | Positive | Neutral | Upgrade | Nov 11, 2020 |
| CFRA | Strong Buy | Hold | Upgrade | May 13, 2020 |
| SunTrust Robinson Humphrey | Hold | Buy | Downgrade | Feb 26, 2020 |
| Buckingham Research | Buy | Buy | Maintain | Jul 31, 2019 |
| Keefe Bruyette & Woods | Market Perform | Outperform | Downgrade | Apr 22, 2019 |
| Buckingham | Buy | Buy | Maintain | Apr 16, 2019 |
| Mizuho | Buy | Neutral | Upgrade | Jan 23, 2019 |
| Argus | Buy | Buy | Maintain | Nov 16, 2018 |
| Bank of America | Buy | Buy | Maintain | Feb 1, 2018 |
| BTIG Research | Buy | Buy | Maintain | Feb 8, 2017 |
| Stifel Nicolaus | Buy | Buy | Maintain | Apr 22, 2016 |
| Stifel | Buy | Buy | Maintain | Apr 22, 2016 |
| Sterne Agee CRT | Neutral | Buy | Downgrade | Apr 22, 2016 |
| Sterne Agee | Neutral | Buy | Downgrade | Apr 22, 2016 |
| FBN Securities | Underperform | Sector Perform | Downgrade | Apr 18, 2016 |
| MKM Partners | Neutral | Neutral | Maintain | Jul 28, 2015 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | Jan 15, 2015 |
| Compass Point | Buy | Buy | Maintain | Nov 12, 2014 |
| ISI Group | Strong Buy | Buy | Upgrade | Apr 25, 2014 |
| S&P Capital IQ | Hold | Sell | Upgrade | Jan 28, 2014 |
| CRT Capital | Buy | Hold | Upgrade | Jul 29, 2013 |
| Gilford Securities | Buy | Buy | Maintain | Jan 9, 2013 |
| Topeka | Hold | Hold | Maintain | Dec 7, 2012 |
| Williams Financial | Buy | Buy | Maintain | May 17, 2012 |
| Williams Capital | Buy | Buy | Maintain | May 17, 2012 |
| Guggenheim | Neutral | Neutral | Maintain | Apr 23, 2012 |
Named analyst price targets
Upside is calculated against the persisted current price $140.07. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| BTIG | Ryan Gilbert | $174 | $139.25 | +24.2% | Sep 22, 2026 |
| Wells Fargo | Analyst unavailable | $145 | $135.57 | +3.5% | Sep 11, 2026 |
| BTIG | Analyst unavailable | $184 | $143.52 | +31.4% | Jul 22, 2026 |
| Barclays | Analyst unavailable | $141 | $148.85 | +0.7% | Jul 14, 2026 |
| Goldman Sachs | Susan Maklari | $190 | $162.2 | +35.6% | Apr 21, 2026 |
| Truist Financial | Analyst unavailable | $140 | $144.51 | -0.0% | Apr 16, 2026 |
| Truist Financial | Jonathan Bettenhausen | $155 | $152.61 | +10.7% | Mar 3, 2026 |
| UBS | Analyst unavailable | $163 | $149.1 | +16.4% | Jan 27, 2026 |
| Argus Research | Chris Graja | $185 | $154.55 | +32.1% | Jan 23, 2026 |
| BTIG | Analyst unavailable | $182 | $156.71 | +29.9% | Jan 21, 2026 |
| Barclays | Analyst unavailable | $129 | $153.19 | -7.9% | Jan 21, 2026 |
| Wells Fargo | Analyst unavailable | $158 | $153.19 | +12.8% | Jan 21, 2026 |
| UBS | John Lovallo | $193 | $153.19 | +37.8% | Jan 20, 2026 |
| Goldman Sachs | Analyst unavailable | $195 | $159.71 | +39.2% | Jan 13, 2026 |
| UBS | Analyst unavailable | $191 | $146.48 | +36.4% | Jan 6, 2026 |
| Wells Fargo | Sam Reid | $155 | $146.48 | +10.7% | Jan 6, 2026 |
| Barclays | Matthew Bouley | $132 | $158.62 | -5.8% | Dec 8, 2025 |
| Wells Fargo | Sam Reid | $180 | $158.62 | +28.5% | Dec 8, 2025 |
| BTIG | Analyst unavailable | $186 | $157.37 | +32.8% | Dec 1, 2025 |
| UBS | Analyst unavailable | $195 | $153.75 | +39.2% | Oct 29, 2025 |
| Evercore ISI | Analyst unavailable | $169 | $171.53 | +20.7% | Oct 7, 2025 |
| RBC Capital | Mike Dahl | $117 | $149 | -16.5% | Jul 23, 2025 |
| RBC Capital | Analyst unavailable | $105 | $120.76 | -25.0% | Apr 21, 2025 |
| BTIG | Carl Reichardt | $150 | $117.54 | +7.1% | Apr 16, 2025 |
| RBC Capital | Mike Dahl | $125 | $136.52 | -10.8% | Jan 10, 2025 |
| RBC Capital | Mike Dahl | $145 | $169.29 | +3.5% | Oct 30, 2024 |
| Citigroup | Anthony Pettinari | $185 | $167.32 | +32.1% | Oct 30, 2024 |
| UBS | John Lovallo | $217 | $173.42 | +54.9% | Jul 19, 2024 |
| JMP Securities | Aaron Hecht | $210 | $173.42 | +49.9% | Jul 19, 2024 |
| Barclays | Matthew Bouley | $200 | $173.42 | +42.8% | Jul 19, 2024 |
| RBC Capital | Mike Dahl | $141 | $145.88 | +0.7% | Apr 19, 2024 |
| BTIG | Carl Reichardt | $169 | $149.07 | +20.7% | Apr 15, 2024 |
| Barclays | Matthew Bouley | $186 | $159.42 | +32.8% | Apr 4, 2024 |
| Wedbush | Jay McCanless | $130 | $161.88 | -7.2% | Apr 2, 2024 |
| Truist Financial | William Stein | $193 | $140.5 | +37.8% | Jan 29, 2024 |
| Wells Fargo | Sam Reid | $123 | $104.93 | -12.2% | Oct 17, 2023 |
| Goldman Sachs | Susan Maklari | $131 | $103.66 | -6.5% | Oct 16, 2023 |
| Goldman Sachs | Analyst unavailable | $98 | $96.4 | -30.0% | Jan 12, 2023 |
| Raymond James | Buck Horne | $61 | $92.99 | -56.5% | Jan 9, 2023 |
| BTIG | Analyst unavailable | $101 | $83.56 | -27.9% | Dec 6, 2022 |
| J.P. Morgan | Analyst unavailable | $100 | $81.62 | -28.6% | Nov 22, 2022 |
| KeyBanc | Kenneth Zener | $84 | $72.44 | -40.0% | Sep 19, 2022 |
| BTIG | Carl Reichardt | $92 | $78.23 | -34.3% | Aug 2, 2022 |
| Barclays | Matthew Bouley | $95 | $75.36 | -32.2% | Jul 26, 2022 |
| BTIG | Carl Reichardt | $97 | $60.56 | -30.7% | Jun 20, 2022 |
| BTIG | Analyst unavailable | $104 | $70.09 | -25.8% | Apr 27, 2022 |
| RBC Capital | Mike Dahl | $89 | $72.21 | -36.5% | Apr 27, 2022 |
| J.P. Morgan | Michael Rehaul | $82.5 | $72.51 | -41.1% | Apr 15, 2022 |
| Barclays | Matthew Bouley | $104 | $76.18 | -25.8% | Apr 3, 2022 |
| Seaport Global | Mark Weintraub | $115 | $98.27 | -17.9% | Jan 14, 2022 |
| Goldman Sachs | Susan Maklari | $119 | $97.29 | -15.0% | Dec 1, 2021 |
| Raymond James | Buck Horne | $120 | $101.05 | -14.3% | Nov 17, 2021 |
| Wells Fargo | Deepa Raghavan | $115 | $96.83 | -17.9% | Nov 15, 2021 |
| Bank of America Securities | Rafe Jadrosich | $120 | $94.56 | -14.3% | Nov 10, 2021 |
| Evercore ISI | Stephen Kim | $159 | $94.56 | +13.5% | Nov 10, 2021 |
| Wedbush | Jay McCanless | $125 | $91.88 | -10.8% | Jul 26, 2021 |
| Argus Research | Chris Graja | $110 | $99.52 | -21.5% | Apr 26, 2021 |
Track every rating change on DHI the moment it posts. Free to start.
Start freeCompany context
Snapshot as of publicationEstablished 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
All DHI earningsConsumer Cyclical peers this season
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Latest beats and misses
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Get the DHI recap when the next report posts
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-09-25T11:11:00.622118+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-09-25T11:11:00.620116+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 2026-09-25. For educational purposes only; not investment advice.