Earnings Report Overview: D.R. Horton reported a first-quarter earnings per share of $2.03 on revenue of $6.89 billion, exceeding expectations, but year-over-year revenue and earnings were down 9% and 22%, respectively, leading to a 1% decline in stock during mid-day trading.
Market Sentiment: Despite solid headline numbers, investor sentiment was mixed, with some analysts maintaining bullish ratings while others issued bearish outlooks, reflecting concerns over a 30% decline in year-over-year net income and ongoing pressures in the housing market.
Interest Rate Impact: The Federal Reserve's recent interest rate cuts are expected to pause, keeping financial conditions tighter than equity markets anticipated, which could affect borrowing costs for homebuilders like D.R. Horton, especially as demand remains sensitive to mortgage rates.
Stock Performance and Strategy: D.R. Horton stock is currently down about 15% post-earnings, with analysts suggesting that maintaining support around the 50-day moving average is crucial for potential recovery, while emphasizing the need for incentives to sustain sales volumes amid a tight housing supply.
Wall Street analysts forecast DHI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DHI is 157.00 USD with a low forecast of 117.00 USD and a high forecast of 191.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
Wall Street analysts forecast DHI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DHI is 157.00 USD with a low forecast of 117.00 USD and a high forecast of 191.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Buy
6 Hold
2 Sell
Hold
Current: 148.590
Low
117.00
Averages
157.00
High
191.00
Current: 148.590
Low
117.00
Averages
157.00
High
191.00
Keefe Bruyette
Market Perform
downgrade
$168 -> $163
2026-01-27
New
Reason
Keefe Bruyette
Price Target
$168 -> $163
AI Analysis
2026-01-27
New
downgrade
Market Perform
Reason
Keefe Bruyette lowered the firm's price target on D.R. Horton to $163 from $168 and keeps a Market Perform rating on the shares.
Argus
Chris Graja
Buy
maintain
$175 -> $185
2026-01-23
Reason
Argus
Chris Graja
Price Target
$175 -> $185
2026-01-23
maintain
Buy
Reason
Argus analyst Chris Graja raised the firm's price target on D.R. Horton to $185 from $175 and keeps a Buy rating on the shares. The firm is bullish on the need for affordable homes, the relative advantage of large builders in the current environment, the company's expertise in delivering affordable homes, and its top-tier financial strength in the industry, the analyst tells investors in a research note. A recent catalyst coinciding with a decline of 20 basis points in the benchmark mortgage rate has been President Trump's statement this month that Fannie Mae and Freddie Mac would buy $200 billion of mortgage-backed securities, the firm added.
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BTIG
Buy
downgrade
$186 -> $182
2026-01-21
Reason
BTIG
Price Target
$186 -> $182
2026-01-21
downgrade
Buy
Reason
BTIG lowered the firm's price target on D.R. Horton to $182 from $186 and keeps a Buy rating on the shares. The company reported strong home sales revenue and gross margin drove the beat to the firm's estimate, though its Q2 guide for gross margin was lower than expected, reflecting higher incentives as demand weakened throughout Q1, the analyst tells investors in a research note.
BofA
Neutral
downgrade
$162 -> $158
2026-01-21
Reason
BofA
Price Target
$162 -> $158
2026-01-21
downgrade
Neutral
Reason
BofA lowered the firm's price target on D.R. Horton to $158 from $162 and keeps a Neutral rating on the shares. Despite a fiscal Q1 earnings beat, the firm reduced its FY26E and FY27 EPS estimates by (5%) and (6%), respectively, to reflect a more conservative gross margin and pre-tax margin outlook.
About DHI
D.R. Horton, Inc. is a homebuilding company. The Company constructs and sells homes through its operating divisions in 125 markets across 36 states. The Company’s segments include Homebuilding, Rental, Forestar, Financial Services, and Other. The Homebuilding divisions are primarily engaged in the acquisition and development of land and the construction and sale of residential homes. The Company’s rental segment consists of single-family and multifamily rental operations. The single-family rental operations construct and lease single-family homes within a community and then generally market each community for a bulk sale of rental homes. The Forestar segment is a residential lot development company with operations in 59 markets across 24 states. The Financial services segment provides mortgage financing and title agency services to homebuyers in many of the Company’s homebuilding markets. It also conducts insurance-related operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
