DHI US S&P 500Russell 1000 Earnings call
D. R. Horton (DHI) · Q2 2026 results and valuation
Share price: $147.48 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 21 Jul 2026 and 21 Apr 2026
Net income up 37.5% on the previous quarter. Tone in line with last period.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+37.5%
Net income vs Q1 2026
Outlook given
Net income 904.9M vs 658.0M
Revenue +22.1%
Against the same quarter last year (Q2 2025) it is −11.7%, so the move on last quarter looks seasonal or timing-related rather than a trend.
Why Net income rose mainly because of stronger cost controls and lower stick and brick costs and slightly lower incentives compared to the second quarter.
2 · How management spoke
Unchanged
Language tone vs last period
Language: restrained — about as upbeat as in Q1 2026.
3 · What stood out
Guidance
The company expects to see similar lot cost appreciation, which impacts the updated cost guidance.
Valuation
Is D. R. Horton undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-09-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 0.8% growth a year (3-year revenue growth), the model's fair value is $148.94 a share — the stock trades 1% below it. Today's price assumes 0.6% growth a year.
Current price
$147.48
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+0.6% for 10 yrs
Fair value / share
$148.94
Buy below
$111.71
Price vs fair value
Undervalued 1%
Price vs buy-below price
Overvalued 32%
Read between the lines
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Figure
DHI's pre-tax margin hit 13.3% on $9.2 million in revenue and $1.2 billion in pre-tax income.
Source quote
“Consolidated pre-tax income totaled $1.2 billion on $9.2 million of revenues, resulting in a pre-tax profit margin of 13.3%.”
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Guidance
D. R. Horton expects its home sales gross margin for the fourth quarter to be in the range of 20.5%-21%, and its consolidated pre-tax profit margin to be between 12.3%…
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Fading
D. R. Horton also has focused the majority of its forward business on forward sales.
Source quote
“We also have focused the majority of our forward business on forward sales. So if need be, as we go forward, we can move those if needed. In other words, we aren't starting those unless we have a contract and firm commitments.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Restrained — about as upbeat as in Q1 2026.
Sentences that drove the tone
“Frankly, I think we still feel like we have some opportunity to improve our capital efficiency in our homes and inventory and our land.”
“We work every day to leverage our industry-leading platform, unmatched scale, efficient operations, and experienced teams to bring homeownership opportunities at affordable price points to more Americans.”
“A little more weakness out in the Northwest and especially as you look up into Seattle, where we've seen some of the shift in the software jobs, and more layoffs...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 9.23B | 7.56B | +22.1% | 9.23B | ±0% |
| Gross profit | 2.15B | 1.70B | +26.0% | 2.21B | −2.9% |
| Operating income | 1.23B | 867.4M | +41.4% | 1.36B | −9.7% |
| Net income | 904.9M | 658.0M | +37.5% | 1.02B | −11.7% |
| EPS | 3.20 | 2.24 | +42.9% | 3.36 | −4.8% |
| P/E today 12.7 | 15.5 | 12.9 | +2.6 | 10.4 | +5.1 |
Topics
Most discussed now
- Horton's annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are filed...
Faded since Q1 2026
- Fading After this call, D. R. Horton will also post its updated investor presentation to its Investor Relations site on the Presentations…
- Fading These are key components of D. R. Horton's operating platform that support its ability to aggregate market share, generate substantial…
- Fading D. R. Horton looks forward to continuing to improve its operations and expand homeownership opportunities for more individuals and families…
- Fading Horton family, D. R. Horton's employees, land developers, trade partners, vendors and real estate agents for your continued hard work and…
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K