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D.R. Horton Q1 EPS $2.03 Beats → Revenue Declines to $6.5B from $7.1B YoY on Affordability

D.R. Horton reported Q1 fiscal 2026 EPS of $2.03, beating estimates, but revenue declined to $6.5 billion from $7.1 billion in the year-ago period as elevated mortgage rates suppressed homebuyer affordability and reduced order volumes. Analyst consensus holds a Hold rating with an average price target of $158.38, reflecting uncertainty about the pace of revenue recovery if mortgage rates remain elevated. Risks include persistent mortgage rate headwinds, potential homebuilder margin compression from increased buyer incentives, and a possible inventory correction if demand remains subdued.