Consumer Cyclical · NYSE/NASDAQ: DHI
HORTON D R INC /DE/ Earnings Summary — Q2 2026
Sentiment: Negative
AI-generated summary
D.R. Horton Reports Q2 2026 Results Amidst Cyclical Softening and Revenue Pressures
Key Takeaways
- Revenue for Q2 2026 declined 2.27% year-over-year to $7.56B, reflecting a continuing trend of cyclical softening.
- Net income attributable to common shareholders fell 20.05% year-over-year, significantly outpacing the decline in revenue.
- Operating margins compressed to 10.58% from approximately 12.95% in the same quarter last year, indicating rising costs or lower pricing power.
- DHI continues to aggressively manage its share count, with diluted shares outstanding decreasing 7.96% year-over-year to 289 million.
- Despite the annual decline, the company saw a sequential recovery in both revenue (+9.7%) and net income (+9.4%) compared to Q1 2026.
- Cost of revenue remains high at $5.86B, representing 77.5% of total revenue, up from 75.4% in Q2 2025.
- Asset growth remains a long-term strength, with the company maintaining its status as a premier volume builder despite high mortgage rates.
Management Guidance
Management maintains a 'value-builder' strategy focused on the entry-level segment, which remains the deepest demand pool despite interest rate volatility.
Sentiment Shift
Stable
Outlook
The outlook remains cautious due to mortgage rate fluctuations and labor shortages, though DHI's 'express' model and internal wealth creation through equity growth provide a buffer.
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This summary is AI-generated from HORTON D R INC /DE/'s latest annual report and public disclosures. It is for informational purposes only and is not investment advice.