D.R. Horton Q3 Profits Fall, Narrows 2025 Outlook

D.R. Horton reported third-quarter 2025 earnings per share of $3.36, which beat analyst expectations but fell below the prior year's $4.10. Revenue for the quarter was $9.23 billion, exceeding forecasts but down from $9.97 billion a year ago. The company narrowed its fiscal 2025 revenue outlook to $33.7-$34.2 billion, slightly raising the midpoint but lowering the high end, due to ongoing affordability constraints and cautious consumer sentiment. Homes closed declined by 4.1% year-over-year, and management expects elevated sales incentives to persist amid challenging market conditions. Shares have declined more than 6% year-to-date, reflecting underperformance compared to the broader market. The average analyst rating remains a 'hold,' and further guidance will be provided in the upcoming earnings call.