Overview

• U.S. homebuilder's fiscal Q3 revenue slightly beat analyst expectations, rising 1% yr/yr

• Adjusted EPS for fiscal Q3 beat analyst expectations, but net income fell 12% yr/yr

• Company repurchased $615.7 mln in shares during the quarter

Outlook

• D.R. Horton sees fiscal 2026 consolidated revenues of $32.5 bln to $33.0 bln

• Company expects homes closed in fiscal 2026 of 83,800 to 84,300

• D.R. Horton says affordability constraints and cautious consumer sentiment continue to impact demand

• Co expects sales incentives to remain elevated in response to market conditions

Result Drivers

• INCREASED CANCELLATION RATE - Q3 cancellation rate rose to 20% from 17% in prior year quarter

Company press release: ID:nBw8k6Cw5a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Revenue	Slight Beat*	$9.23 bln	$9.18 bln (12 Analysts)
Q3 EPS	Beat	$3.20	$3.04 (16 Analysts)
Q3 Dividend		$0.45
Q3 NET_INCOME_ATTRIBUTABLE		$904.90 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "buy"

• Wall Street's median 12-month price target for D.R. Horton Inc is $172.00, about 18.8% above its July 20 closing price of $144.79

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

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