Consumer products
D.R. Horton's Q3 FY2026 revenue was essentially flat year-over-year at $9.23B, but net income fell 11.7% to $904.9M and home sales gross margin compressed to 20.7% from 21.8% as elevated sales incentives and affordability constraints continued to pressure profitability.
Key risk: Margin compression from elevated sales incentives
Home sales gross margin declined 110 basis points year-over-year to 20.7% in Q3 FY2026 due to higher incentives, including mortgage rate buydowns, and management expects incentives to remain elevated into fiscal 2027, which could continue to pressure profitability if affordability constraints persist.
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