D.R. Horton Q4 2026: Revenue Beat Overshadowed by $91M Impairment
As seen on the 24/7 Wall St. homepage on October 29, 2026.
$91.4 million in impairments on nine multi-family rental projects left earnings missing expectations by 11%, despite a revenue beat. Management expects to keep buyer incentives elevated through fiscal 2027.
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A $91.4 million inventory impairment on nine multi-family rental projects pushed D.R. Horton's quarterly earnings to $2.67 per diluted share, missing expectations, even as revenue beat.
Net sales orders fell 7% and the cancellation rate climbed to 23% from 20% a year earlier on affordability pressure from elevated mortgage rates. Management says buyer incentives stay elevated through fiscal 2027, so margin recovery will not be swift.
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The company has now fallen short of Wall Street's earnings target in two of the last five quarters, after beating in the prior two.
The board raised the quarterly dividend 11% to $0.50 per share, an offset to the softer operating picture. Rising cancellations, sticky incentives, and multi-family impairment risk still leave the near-term earnings path uncertain.
Mentioned: DHI