D.R. Horton, Inc. stock research
FY2026 Q2
D.R. Horton (DHI) Gross Margin — Quarter Ended Mar 31, 2026
Revenue increased sequentially but gross margin declined as cost of revenue grew at a faster pace. Compared with the same quarter last year, both revenue and gross profit were lower, and gross margin also weakened.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q2
Revenue increased sequentially but gross margin declined as cost of revenue grew at a faster pace. Compared with the same quarter last year, both revenue and gross profit were lower, and gross margin also weakened.
- The cost of revenue increased at a higher rate than revenue both sequentially and year over year, compressing gross margin.
- Sequentially, revenue was higher and gross profit was slightly higher, but gross margin weakened due to a proportionally larger increase in cost of revenue. Compared to the same quarter a year ago, revenue, gross profit, and gross margin were all lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.5%
Gross profit
$1.7B
Revenue
$7.6B
Cost of revenue
$5.9B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-2.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $9.2B | $2.2B | $7.0B | 23.9% |
| Sep 30, 2025 | $9.7B | $2.1B | $7.6B | 21.7% |
| Dec 31, 2025 | $6.9B | $1.6B | $5.3B | 23.2% |
| Mar 31, 2026 | $7.6B | $1.7B | $5.9B | 22.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-0.6 pts
Year-over-year change
Mar 31, 2025
-2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The cost of revenue increased at a higher rate than revenue both sequentially and year over year, compressing gross margin.
Sequentially, revenue was higher and gross profit was slightly higher, but gross margin weakened due to a proportionally larger increase in cost of revenue. Compared to the same quarter a year ago, revenue, gross profit, and gross margin were all lower.
Monitor the impact of interest rate environment and mortgage financing availability on housing demand and cost of revenue, as noted in the company's risk factors.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| D.R. Horton, Inc. (DHI) | 22.5% |