Arlington, Texas — D.R. Horton, Inc. (NYSE: DHI) reported on Tuesday that its net income for the second fiscal quarter ended March 31, 2026, decreased by 20% to $647.9 million, or $2.24 per diluted share. This compares to a net income of $810.4 million, or $2.58 per diluted share, in the same period of the previous fiscal year. Despite the year-over-year decline, the company’s earnings per share exceeded the average analyst estimate of $2.15 per share, as compiled by Zacks Investment Research.
Total consolidated revenue for the quarter fell to $7.56 billion, down from $7.73 billion a year ago. The revenue figure was slightly below the $7.66 billion projected by Wall Street analysts. The company reported a consolidated pre-tax profit margin of 11.5% for the period. Executive Chairman David Auld stated that affordability constraints and cautious consumer sentiment continue to impact new home demand across the United States.
To address these market conditions, D.R. Horton has utilized sales incentives to drive volume. Auld noted that the company expects these incentives to remain elevated throughout fiscal 2026, with the specific levels of support depending on mortgage interest rates, demand during the spring selling season, and broader market conditions. Despite the headwinds, the company reported an 11% year-over-year increase in net sales orders during the quarter, while successfully reducing its inventory of unsold completed homes by 35% compared to the prior year.
The company’s rental operations contributed $211.8 million in revenue during the second quarter, derived from the sale of 566 single-family rental homes and 216 multi-family rental units. This segment generated $12.3 million in pre-tax income, reflecting a pre-tax profit margin of 5.8%. Additionally, the financial services segment reported revenues of $192.8 million and pre-tax income of $51.7 million, yielding a pre-tax profit margin of 26.8%.
D.R. Horton maintained a strong capital return program during the quarter, returning $1.0 billion to shareholders through a combination of share repurchases and dividends. The company repurchased common stock and paid out dividends, including a newly declared quarterly cash dividend of $0.45 per share. This dividend is scheduled to be paid on May 14, 2026, to stockholders of record as of May 7, 2026.
For the first six months of fiscal 2026, the homebuilder’s net income fell 25% to $1.2 billion, with diluted earnings per share decreasing 18% to $4.27. Total revenue for the six-month period was $14.4 billion, compared to $15.3 billion in the first half of the previous year. Based on these results, D.R. Horton updated its full-year guidance, now forecasting consolidated revenues in the range of $33.5 billion to $34.5 billion, a slight narrowing from the previous upper limit of $35.0 billion.
The company ended the quarter with a homebuilding return on inventory of 17.6% for the trailing twelve months. Total liquidity at the end of the period stood at approximately $6.6 billion, providing the firm with continued operational flexibility as it navigates the current economic environment.