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D.R. Horton cuts revenue and closing guidance after margin beat
The company reported a 20.7% home sales gross margin in Q3 2026, but reduced its fiscal 2026 closing forecast to 83,800 to 84,300 homes from 86,000 to 87,000.
D.R. Horton delivered stronger-than-expected profitability in Q3 2026, reporting a 20.7% home sales gross margin, after which it lowered both its full-year revenue and closing guidance, according to HousingWire.
On the quarter, the builder said it closed nearly 24,000 homes, while orders were mostly flat versus a year earlier and cancellations increased to 20%, prompting management to emphasize operating discipline rather than chasing sales volume amid fragile buyer confidence.
Management also framed results around aligning housing starts to actual new order demand, even as construction operations have become efficient enough to support faster production.
As part of the guidance changes, D.R. Horton reduced its fiscal 2026 closing forecast to 83,800 to 84,300 homes from a prior expectation of 86,000 to 87,000, and lowered revenue guidance to $32.5 billion to $33 billion from its earlier range.