Revenue growth has entered a contractionary phase with a 2.3% year-over-year decline in 2026Q2, while gross margins have compressed to 22.5% from a 26.5% peak in 2024Q3 due to increased incentive intensity.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 33.35B | 34.25B | 36.8B | 35.46B | 33.48B | 27.77B | 20.31B | 17.59B | 16.07B | 14.09B | 12.16B | 10.82B | 8.02B | 6.26B | 4.35B | 3.64B | 4.4B | 3.66B | 6.65B | 11.3B | 15.05B | 13.86B | 10.84B | 8.73B | 6.74B | 4.46B | 3.65B | 3.16B | 2.18B | 837.3M | 547.3M |
| Revenue Growth % | -5.57% | -6.93% | 3.78% | 5.92% | 20.54% | 36.74% | 15.45% | 9.49% | 14.03% | 15.9% | 12.32% | 34.88% | 28.21% | 43.76% | 19.72% | -17.35% | 20.3% | -44.97% | -41.17% | -24.95% | 8.57% | 27.88% | 24.21% | 29.52% | 51.25% | 21.95% | 15.76% | 44.99% | 159.99% | 52.99% | 25.13% |
| Cost of Goods Sold | 25.74B | 26.13B | 27.27B | 26.11B | 22.98B | 19.9B | 15.37B | 13.72B | 12.4B | 11.04B | 9.5B | 8.54B | 6.27B | 4.85B | 3.49B | 3.02B | 3.63B | 3.54B | 8.28B | 10.49B | 11.42B | 10.14B | 8.2B | 6.81B | 5.36B | 3.53B | 2.92B | 2.54B | 1.76B | 680.9M | 446.5M |
| COGS % of Revenue | - | 76.3% | 74.09% | 73.63% | 68.63% | 71.65% | 75.69% | 77.99% | 77.16% | 78.37% | 78.16% | 78.86% | 78.11% | 77.54% | 80.21% | 83.13% | 82.44% | 96.75% | 124.61% | 92.82% | 75.86% | 73.14% | 75.62% | 77.98% | 79.6% | 79.16% | 79.83% | 80.47% | 80.66% | 81.32% | 81.58% |
| Gross Profit | 7.6B | 8.12B | 9.54B | 9.35B | 10.5B | 7.88B | 4.94B | 3.87B | 3.67B | 3.05B | 2.65B | 2.29B | 1.76B | 1.41B | 861.6M | 613.5M | 772.6M | 118.9M | -1.64B | 811.4M | 3.63B | 3.72B | 2.64B | 1.92B | 1.37B | 928.37M | 737.08M | 616.3M | 421.1M | 156.4M | 100.8M |
| Gross Margin % | 22.8% | 23.7% | 25.91% | 26.37% | 31.37% | 28.35% | 24.31% | 22.01% | 22.84% | 21.63% | 21.84% | 21.14% | 21.89% | 22.46% | 19.79% | 16.87% | 17.56% | 3.25% | -24.61% | 7.18% | 24.14% | 26.86% | 24.38% | 22.02% | 20.4% | 20.84% | 20.17% | 19.53% | 19.34% | 18.68% | 18.42% |
| Gross Profit Growth % | - | -14.88% | 1.98% | -10.98% | 33.39% | 59.48% | 27.53% | 5.51% | 20.4% | 14.82% | 16.02% | 30.29% | 24.93% | 63.16% | 40.44% | -20.59% | 549.79% | 107.27% | -301.59% | -77.67% | -2.43% | 40.85% | 37.52% | 39.87% | 48.04% | 25.95% | 19.6% | 46.35% | 169.25% | 55.16% | 26.47% |
| Operating Expenses | 3.68B | 3.69B | 3.42B | 3.11B | 2.8B | 2.48B | 1.98B | 1.82B | 1.63B | 1.38B | 1.27B | 1.14B | 946.5M | 766.3M | 614.2M | 556.3M | 599.2M | 601.1M | 891.9M | 1.3B | 1.66B | 1.37B | 1.08B | 915.35M | 714.54M | 479.4M | 420.37M | 342.9M | 241.4M | 93.9M | 56.5M |
| OpEx % of Revenue | - | 10.78% | 9.3% | 8.77% | 8.35% | 8.94% | 9.77% | 10.33% | 10.14% | 9.82% | 10.45% | 10.56% | 11.79% | 12.24% | 14.11% | 15.3% | 13.62% | 16.43% | 13.42% | 11.47% | 11.02% | 9.91% | 9.96% | 10.49% | 10.6% | 10.76% | 11.51% | 10.86% | 11.09% | 11.21% | 10.32% |
| Selling, General & Admin | 3.68B | 3.69B | 3.42B | 3.11B | 2.8B | 2.48B | 1.98B | 1.82B | 1.63B | 1.38B | 1.27B | 1.14B | 946.5M | 766.3M | 614.2M | 556.3M | 599.2M | 601.1M | 891.9M | 1.3B | 1.66B | 1.37B | 1.08B | 915.35M | 714.54M | 479.4M | 395.87M | 322.1M | 231.6M | 89.5M | 53.9M |
| SG&A % of Revenue | - | 10.78% | 9.3% | 8.77% | 8.35% | 8.94% | 9.77% | 10.33% | 10.14% | 9.82% | 10.45% | 10.56% | 11.79% | 12.24% | 14.11% | 15.3% | 13.62% | 16.43% | 13.42% | 11.47% | 11.02% | 9.91% | 9.96% | 10.49% | 10.6% | 10.76% | 10.83% | 10.21% | 10.64% | 10.69% | 9.85% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 24.49M | 20.8M | 9.8M | 4.4M | 2.6M |
| Operating Income | 3.92B | 4.42B | 6.11B | 6.24B | 7.71B | 5.39B | 2.95B | 2.05B | 2.04B | 1.66B | 1.38B | 1.15B | 809.8M | 639.5M | 247.4M | 57.2M | 173.4M | -482.2M | -2.53B | -483.9M | 1.97B | 2.35B | 1.56B | 1.01B | 659.86M | 448.97M | 316.71M | 273.4M | 179.7M | 114.1M | 94.6M |
| Operating Margin % | 11.76% | 12.92% | 16.61% | 17.6% | 23.02% | 19.41% | 14.55% | 11.68% | 12.7% | 11.81% | 11.38% | 10.58% | 10.09% | 10.22% | 5.68% | 1.57% | 3.94% | -13.18% | -38.03% | -4.28% | 13.12% | 16.95% | 14.42% | 11.54% | 9.79% | 10.08% | 8.67% | 8.66% | 8.25% | 13.63% | 17.28% |
| Operating Income Growth % | - | -27.64% | -2.04% | -19.03% | 42.98% | 82.47% | 43.79% | 0.71% | 22.59% | 20.25% | 20.81% | 41.48% | 26.63% | 158.49% | 332.52% | -67.01% | 135.96% | 80.92% | -422.34% | -124.51% | -15.96% | 50.25% | 55.27% | 52.6% | 46.97% | 41.76% | 15.84% | 52.14% | 57.49% | 20.61% | 184.94% |
| EBITDA | 4.03B | 4.53B | 6.2B | 6.33B | 7.79B | 5.47B | 3.03B | 2.13B | 2.1B | 1.72B | 1.45B | 1.2B | 848.2M | 662.2M | 266.2M | 77.1M | 190.6M | -456.5M | -2.47B | -419.5M | 2.04B | 2.41B | 1.62B | 1.05B | 700.51M | 485.03M | 341.2M | 294.2M | 189.5M | 121.8M | 100.4M |
| EBITDA Margin % | 12.08% | 13.21% | 16.85% | 17.86% | 23.27% | 19.68% | 14.94% | 12.09% | 13.09% | 12.2% | 11.89% | 11.08% | 10.57% | 10.58% | 6.11% | 2.12% | 4.33% | -12.48% | -37.12% | -3.71% | 13.53% | 17.36% | 14.93% | 12.06% | 10.4% | 10.89% | 9.34% | 9.32% | 8.71% | 14.55% | 18.34% |
| EBITDA Growth % | -27.41% | -27.02% | -2.08% | -18.7% | 42.54% | 80.08% | 42.7% | 1.14% | 22.32% | 18.96% | 20.45% | 41.45% | 28.09% | 148.76% | 245.27% | -59.55% | 141.75% | 81.5% | -488.13% | -120.61% | -15.39% | 48.63% | 53.78% | 50.29% | 44.42% | 42.15% | 15.98% | 55.25% | 55.58% | 21.31% | 185.23% |
| D&A (Non-Cash Add-back) | 108.4M | 101.3M | 87.1M | 91.6M | 81.4M | 73.9M | 80.4M | 72M | 62.4M | 54.7M | 61M | 54.1M | 38.4M | 22.7M | 18.8M | 19.9M | 17.2M | 25.7M | 60.4M | 64.4M | 61.7M | 57.1M | 55.5M | 45.86M | 40.65M | 36.06M | 24.49M | 20.8M | 9.8M | 7.7M | 5.8M |
| EBIT | 4.03B | 4.74B | 6.28B | 6.31B | 7.63B | 5.36B | 2.98B | 2.13B | 2.06B | 1.6B | 1.35B | 1.12B | 814.2M | 662.9M | 269.8M | 64M | 187.7M | -455.1M | -2.59B | -927.6M | 2.04B | 2.4B | 1.58B | 1.01B | 659.86M | 448.97M | 316.71M | 273.41M | 179.74M | 114.1M | 94.6M |
| Net Interest Income | -91.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14.5M | 13.5M | 12.5M | 10.2M | 3.4M | -16.7M | -42.3M | -78.2M | -86.8M | -31.3M | 14.9M | -48.1M | -17.3M | -9.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14.5M | 13.5M | 12.5M | 10.2M | 8.5M | 10.2M | 9.6M | 10M | 10.4M | 11.4M | 38.5M | 6.9M | 3.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 91.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.1M | 26.9M | 51.9M | 88.2M | 97.2M | 42.7M | 23.6M | 55M | 21.2M | 9.3M | 5.15M | 6.01M | 8.81M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 308.2M | 315.7M | 170.8M | 73.4M | -78.7M | -34.9M | 28.5M | 70.5M | 19.6M | -62.3M | -30.6M | -22.3M | 4.4M | 18.3M | -4.5M | -45.1M | -73.9M | -70.1M | -104.2M | -467.3M | 12.9M | 29.4M | 19.4M | 1.2M | -12.36M | -41.17M | -7.49M | -9.61M | -20.64M | -5.5M | -4.8M |
| Pretax Income | 4.23B | 4.74B | 6.28B | 6.31B | 7.63B | 5.36B | 2.98B | 2.13B | 2.06B | 1.6B | 1.35B | 1.12B | 814.2M | 657.8M | 242.9M | 12.1M | 99.5M | -552.3M | -2.63B | -951.2M | 1.99B | 2.38B | 1.58B | 1.01B | 647.51M | 407.8M | 309.22M | 263.8M | 159.1M | 108.6M | 89.8M |
| Pretax Margin % | 12.68% | 13.84% | 17.08% | 17.81% | 22.79% | 19.29% | 14.69% | 12.08% | 12.82% | 11.37% | 11.13% | 10.38% | 10.15% | 10.51% | 5.58% | 0.33% | 2.26% | -15.1% | -39.6% | -8.42% | 13.2% | 17.16% | 14.6% | 11.55% | 9.61% | 9.15% | 8.46% | 8.36% | 7.31% | 12.97% | 16.41% |
| Income Tax | 1.03B | 1.12B | 1.48B | 1.52B | 1.73B | 1.17B | 602.5M | 506.7M | 597.7M | 563.7M | 467.2M | 372.7M | 280.7M | 195.1M | -713.4M | -59.7M | -145.6M | -7M | 1.8M | -238.7M | 753.8M | 908.1M | 607.8M | 382.21M | 242.81M | 152.92M | 117.5M | 104M | 65.7M | 43.6M | 36.6M |
| Effective Tax Rate % | 24.26% | 23.61% | 23.53% | 24.06% | 22.73% | 21.75% | 20.2% | 23.84% | 29.01% | 35.19% | 34.52% | 33.18% | 34.48% | 29.66% | -293.7% | -493.39% | -146.33% | 1.27% | -0.07% | 25.09% | 37.93% | 38.18% | 38.4% | 37.91% | 37.5% | 37.5% | 38% | 39.42% | 41.29% | 40.15% | 40.76% |
| Net Income | 3.17B | 3.59B | 4.76B | 4.75B | 5.86B | 4.18B | 2.37B | 1.62B | 1.46B | 1.04B | 886.3M | 750.7M | 533.5M | 462.7M | 956.3M | 71.8M | 245.1M | -545.3M | -2.63B | -712.5M | 1.23B | 1.47B | 975.1M | 625.96M | 404.69M | 257.01M | 191.72M | 159.8M | 93.4M | 65M | 46.3M |
| Net Margin % | 9.51% | 10.47% | 12.92% | 13.38% | 17.5% | 15.03% | 11.69% | 9.2% | 9.09% | 7.37% | 7.29% | 6.94% | 6.65% | 7.39% | 21.96% | 1.97% | 5.57% | -14.91% | -39.63% | -6.31% | 8.19% | 10.61% | 8.99% | 7.17% | 6.01% | 5.77% | 5.25% | 5.06% | 4.29% | 7.76% | 8.46% |
| Net Income Growth % | -26.09% | -24.62% | 0.23% | -18.98% | 40.27% | 75.92% | 46.66% | 10.83% | 40.63% | 17.16% | 18.06% | 40.71% | 15.3% | -51.62% | 1231.89% | -70.71% | 144.95% | 79.29% | -269.63% | -157.77% | -16.13% | 50.8% | 55.78% | 54.67% | 57.46% | 34.05% | 19.97% | 71.09% | 43.69% | 40.39% | 125.85% |
| Net Income (Continuing) | 3.2B | 3.62B | 4.81B | 4.8B | 5.9B | 4.19B | 2.38B | 1.62B | 1.46B | 1.04B | 886.3M | 750.7M | 533.5M | 462.7M | 956.3M | 71.8M | 245.1M | -545.3M | -2.63B | -712.5M | 1.23B | 1.47B | 975.1M | 625.96M | 404.69M | 254.87M | 191.72M | 159.8M | 93.4M | 65M | 53.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 573.2M | 551.8M | 511.6M | 441.7M | 389.3M | 329.7M | 281.5M | 274.2M | 174.5M | 500K | 500K | 1.1M | 3.9M | 2.9M | 2.6M | 2.9M | 9.7M | 8.8M | 30.5M | 68.4M | 105.1M | 203.2M | 166.4M | 135.9M | 20.95M | 8.86M | 5.26M | 4.8M | 3.4M | 0 | 0 |
| EPS (Diluted) | 10.98 | 11.57 | 14.34 | 13.82 | 16.51 | 11.42 | 6.41 | 4.29 | 3.81 | 2.74 | 2.36 | 2.03 | 1.50 | 1.33 | 2.77 | 0.23 | 0.77 | -1.72 | -8.34 | -2.27 | 3.90 | 4.62 | 3.09 | 1.33 | 1.44 | 1.11 | 0.84 | 0.63 | 0.46 | 0.32 | 0.24 |
| EPS Growth % | -19.23% | -19.32% | 3.76% | -16.29% | 44.57% | 78.16% | 49.42% | 12.6% | 39.05% | 16.1% | 16.26% | 35.33% | 12.78% | -51.99% | 1104.35% | -70.13% | 144.77% | 79.38% | -267.4% | -158.21% | -15.58% | 49.51% | 132.33% | -7.64% | 29.73% | 32.14% | 33.33% | 36.96% | 43.75% | 33.33% | 26.32% |
| EPS (Basic) | - | 11.62 | 14.44 | 13.93 | 16.65 | 11.56 | 6.49 | 4.34 | 3.88 | 2.77 | 2.39 | 2.05 | 1.57 | 1.44 | 3.01 | 0.23 | 0.77 | -1.72 | -8.34 | -2.27 | 3.94 | 4.71 | 3.14 | 1.35 | 1.51 | 1.13 | 0.85 | 0.64 | 0.46 | 0.35 | 0.24 |
| Diluted Shares Outstanding | 289M | 309.9M | 331.6M | 343.3M | 354.8M | 365.8M | 370.2M | 377.4M | 383.4M | 378.9M | 375.1M | 369.8M | 366.6M | 364.9M | 359M | 318.5M | 318.6M | 316.9M | 315.7M | 314.1M | 316.23M | 318.29M | 315.95M | 468.99M | 282.01M | 230.84M | 227.19M | 253.28M | 202.67M | 135.45M | 114.04M |
| Basic Shares Outstanding | 287.9M | 308.5M | 329.5M | 340.7M | 351.7M | 361.1M | 365.5M | 372.6M | 376.6M | 374.3M | 371M | 366.3M | 340.5M | 322.1M | 318.1M | 318.3M | 318.1M | 316.9M | 315.7M | 314.1M | 313.02M | 312.21M | 310.28M | 464.56M | 268.89M | 226.77M | 225.59M | 247.87M | 202.67M | 135.45M | 114.04M |
| Dividend Payout Ratio | - | 13.8% | 8.31% | 7.19% | 5.4% | 6.93% | 10.78% | 13.8% | 12.9% | 14.41% | 13.39% | 12.2% | 9.11% | 13.01% | 5% | 66.57% | 19.46% | - | - | - | 11.16% | 6.56% | 6.86% | 6.41% | 6.45% | 5.34% | 4.84% | 4.44% | 5.03% | 3.23% | 3.02% |
Interest rate sensitivity
According to the latest quarterly financial data, DHI's revenue growth has remained in negative territory for several consecutive periods, with the most recent quarter showing a 2.3% year-over-year decline, signaling that the company is struggling to maintain volume amidst a challenging macroeconomic environment for residential housing.
The consistent negative revenue growth suggests that the company's high-volume, entry-level strategy is facing significant headwinds from affordability constraints. Investors should monitor whether this trend reflects a structural shift in buyer demand or merely a temporary pause in the housing cycle.
As reported in recent income statements, DHI's gross margin has compressed from a peak of 26.5% in 2024Q3 to 22.5% in 2026Q2, reflecting the increased reliance on mortgage rate buy-downs and other buyer incentives to sustain sales velocity in a high-interest rate environment.
The erosion of gross margins suggests that the company is sacrificing profitability to protect market share, a common defensive tactic in the homebuilding sector. This trend warrants further investigation into whether the company can stabilize these margins without further compromising its competitive pricing advantage.
Based on the provided figures, DHI's operating margin has contracted significantly from 17.7% in 2024Q3 to 10.6% in 2026Q2, indicating that the company's fixed cost structure is failing to scale efficiently as revenue growth turns negative and incentive costs weigh on the bottom line.
The decline in operating margins appears to outpace the revenue contraction, suggesting that SG&A expenses are becoming stickier relative to the current volume of home closings. This lack of operating leverage may indicate that the company's decentralized management model is facing challenges in rightsizing costs during a downturn.
Financial statements indicate that diluted EPS has fallen from a high of $4.10 in 2024Q3 to $2.24 in 2026Q2, a trend exacerbated by recurring stock-based compensation expenses that averaged over $30 million per quarter in the most recent periods, further diluting shareholder returns during this contractionary phase.
The sharp decline in EPS suggests that the company's profitability is highly sensitive to the current housing cycle, with stock-based compensation adding a layer of persistent expense that impacts net income. Investors should monitor whether these compensation levels remain appropriate given the current trajectory of earnings performance.
While DHI maintains a strong balance sheet, the recent trend of negative revenue growth combined with margin compression suggests that the company's reliance on aggressive incentives may be reaching a point of diminishing returns, potentially exposing the firm to further downside if housing demand weakens further.
Short-term observers may argue that the company's ability to maintain volume is masking a deeper deterioration in unit economics. The reliance on mortgage buy-downs may be an unsustainable strategy if interest rates remain elevated for an extended period, potentially leading to further margin erosion.
Quick answers to the most common questions about buying DHI stock.
For fiscal year 2025, D.R. Horton, Inc. (DHI) reported total revenue of $34.25B. This represents a 6158.1% increase compared to $547.3M in 1996.
D.R. Horton, Inc. (DHI) is profitable, generating $3.59B in net income for the fiscal year ending 2025 with a net profit margin of 10.5%.
D.R. Horton, Inc. (DHI) reported an operating income of $4.42B, resulting in an operating profit margin of 12.9%. This margin reflects the operational efficiency of the business before interest and taxes.
D.R. Horton, Inc. (DHI) generated $8.12B in gross profit for the year, representing a gross profit margin of 23.7%. This demonstrates the company's core pricing power and production efficiency.