D.R. Horton Up 5.8% After Q1 Beat, Reaffirms $33.5–35B 2026 Revenue Goal
Shares of D.R. Horton have gained 5.8% since its fiscal Q1 release, where EPS of $2.03 beat estimates by 3.6% despite a 22.2% year-over-year decline and revenues of $6.89 billion fell 9.5% but topped forecasts by 2.7%. The company reiterated 2026 guidance for $33.5–35 billion revenues and 86,000–88,000 home closings.
1. Share Performance and Market Reaction
Shares of D.R. Horton have risen 5.8% since its fiscal first-quarter report as investors rewarded the EPS and revenue beats despite year-over-year declines, signaling cautious optimism ahead of Q2 results.
2. Q1 Financial Results
In Q1, EPS was $2.03, 3.6% above consensus, down 22.2% from prior year. Revenues totaled $6.89 billion, down 9.5% year-over-year but 2.7% above forecasts. Pre-tax margin compressed to 11.6% from 14.6%, while net home sales orders grew 2.6% to 18,300 units and backlog rose 3.4% to 11,376 homes valued at $4.31 billion.
3. Liquidity and Capital Allocation
At quarter end, the company held $2.55 billion in cash and $6.6 billion in total liquidity. D.R. Horton repurchased 4.4 million shares for $669.7 million, leaving $2.6 billion under authorization, with a debt-to-capital ratio of 18.8% and trailing-twelve-month ROE of 13.7%.
4. 2026 Guidance and Outlook
The builder reaffirmed fiscal 2026 revenue guidance of $33.5–35 billion and projected home closings of 86,000–88,000, with cash flow from operations expected to exceed $3 billion. Analysts have trimmed estimates by 9.5% since the release, reflecting concerns over affordability and consumer confidence.