Results for the quarter ended June 30

D.R. Horton reported fiscal third-quarter results on July 21, 2026. Net income attributable to the company was $904.9 million, or $3.20 per diluted share, down 12 percent from a year earlier. Consolidated revenues were $9.2 billion and the pre-tax profit margin was 13.3 percent.

Home sales revenues rose 1 percent to $8.7 billion on a 4 percent increase in homes closed, to 23,983. The average closing price fell 2 percent to $362,000. Net sales orders were 23,084 homes worth $8.4 billion. Home sales gross margin was 20.7 percent.

Through nine months, net income was $2.1 billion, down 20 percent year over year, with earnings of $7.45 per share.

The cancellation number

The cancellation rate rose to 20 percent of gross orders, from 17 percent a year earlier and 16 percent in the prior quarter. A cancellation rate is the share of signed contracts that do not close.

That measure matters more than the order count because it is where financing stress shows up first. A buyer who qualified at contract signing and cannot qualify at closing appears as a cancellation, not as a weak order. A three-point increase in a single quarter, on a base of roughly 29,000 gross orders, implies on the order of 900 additional broken contracts within the quarter.

It also has a direct inventory consequence. Cancelled contracts return finished homes to the standing-inventory pool, which is the inventory most likely to attract incentives.

Inventory and capital returns

The company reported 38,000 homes in inventory, of which 23,300 were unsold, according to summaries of the associated quarterly filing. Book value per share rose 5 percent to $84.85. Total liquidity was $6.1 billion and debt stood at 23.0 percent of total capital.

The company repurchased 4.2 million shares for $615.7 million in the quarter and paid $127.1 million in dividends.

Caveat: the inventory breakdown was taken from a third-party summary of the quarterly filing rather than from the text of the filing itself, and should be treated as less firmly established than the figures drawn directly from the earnings release.

What the lot pipeline shows

D.R. Horton majority-owns Forestar Group, a separately listed national lot developer that supplies finished lots both to D.R. Horton and to other builders. Forestar reported its own third-quarter results the same day: net income attributable to Forestar rose 9 percent to $35.9 million, revenue rose 4 percent to $407.0 million on 3,659 lots sold, and the company owned and controlled 91,700 lots with 23,500 already under contract for sale representing $2.3 billion of future revenue, according to its earnings release filed with the Securities and Exchange Commission.

Forestar's lot supply is the upstream half of D.R. Horton's model: a captive developer that turns raw land into finished lots ahead of demand, which is one reason D.R. Horton can keep closing homes at scale even as gross margin and cancellation trends both point to a softer buyer.

What the guidance says

The company set full-year fiscal 2026 guidance at $32.5 billion to $33.0 billion of revenue and 83,800 to 84,300 homes closed.

Analysis: closing more homes at a lower average price while gross margin holds above 20 percent is the signature of a builder using volume and scale purchasing to absorb concessions. The constraint on that strategy is the cancellation rate, because volume achieved through marginal buyers converts to closings only if those buyers can still finance at delivery. The release does not disclose the share of closings that used builder-funded rate buydowns, which is the figure that would settle how much of the margin is being bought.