D.R. Horton Shares Face Pressure Ahead of Quarterly Report

Investors are closely watching the upcoming quarterly results from D.R. Horton, the leading U.S. homebuilder. The figures for the first quarter of 2026, scheduled for release before the market opens on Tuesday, are anticipated to reveal a significant setback. Market experts forecast a year-over-year profit decline exceeding 26 percent.

This tense anticipation has already impacted the stock, which registered notable losses in today's trading session.

Despite the looming weak report, D.R. Horton maintains a firm position within institutional portfolios. Data shows that approximately 90.6 percent of the company's shares are held by hedge funds and other institutional investors.

Recent activity highlights this continued interest. In the third quarter of 2025, Capital Advisory Group Advisory Services LLC established a new position comprising 8,721 shares, valued at roughly $1.48 million. Canton Hathaway LLC also initiated a new investment. Notably, Hantz Financial Services Inc. aggressively expanded its stake in Q2 2025, increasing its holdings by over 1,678 percent.

Analyst Forecasts Paint a Clear Picture

Consensus estimates from researchers outline a challenging quarter. For the period just ended, earnings per share (EPS) are projected to land between only $1.92 and $1.93. This represents a decrease of about 26.4 percent compared to the same quarter last year.

Should investors sell immediately? Or is it worth buying D.R. Horton?

Revenue expectations also signal pronounced weakness. Forecasts range from $6.59 billion to $6.67 billion. If realized, this would equate to an estimated 12.5 percent drop from the first quarter of 2025, when revenue reached $7.61 billion. This continues a recent trend, following a 3.2 percent revenue dip already reported in Q4 2025.

Stock Performance and Mixed Outlook

Trading began this week with the share price at $156.02, but it fell by as much as 3.1 percent in today's activity, reflecting investor nervousness before the earnings announcement.

Taking a longer-term view, however, the equity's performance appears more resilient. From the start of 2025 through last week, the stock had still advanced approximately 8.5 percent. Analyst opinions remain divided. The current average price target corridor sits between $161.62 and $161.86, accompanied by a general "Hold" recommendation. Wells Fargo & Company recently reaffirmed an "Equal Weight" rating but substantially reduced its price target from $180.00 to $155.00.

A Solid Financial Foundation

The company's underlying financial health remains robust. D.R. Horton recently raised its quarterly dividend from $0.40 to $0.45 per share, translating to an annual payout of $1.80 and a dividend yield of 1.2 percent. Furthermore, the homebuilder operates with a resilient financial structure, evidenced by a low debt-to-equity ratio of 0.24 and a strong current ratio of 6.48.

Tomorrow's report will provide a clear indication of how effectively D.R. Horton is navigating the current headwinds in the U.S. housing market.