D.R. Horton authorizes $5.0 billion stock buyback

The plan takes effect September 15, 2026, with no expiration date, after the company had nearly exhausted its prior authorization.

D.R. Horton's board has authorized the repurchase of an additional $5.0 billion of common stock. The authorization takes effect on September 15, 2026 and carries no expiration date. At that date the company had roughly $53 million left under its previous buyback plan.

Horton now expects total share repurchases for fiscal 2026 to reach at least $3.25 billion. The new authorization is worth about 13% of the company's $38.837 billion market capitalization, according to Yahoo Finance.

The buyback comes as Horton's earnings have slipped. Net income for the quarter ended June 30, 2026 fell 12% to $904.9 million, with diluted earnings per share down 5% to $3.20, the company said in a filing with the Securities and Exchange Commission. For the first nine months of the fiscal year, net income dropped 20% to $2.1 billion and diluted earnings per share fell 13% to $7.45. Wells Fargo cut its price target on the stock to $145 from $155 on September 11, 2026, while keeping an Equal-Weight rating, according to Yahoo Finance. Shares recently traded around $138.85, near the bottom of a 52-week range that reached as high as $184.54.

Housing demand has softened against elevated mortgage rates, and Wall Street already expects Horton's per-share earnings to decline this year. A $5.0 billion authorization, on top of a pledge to buy back at least $3.25 billion in fiscal 2026, signals that management sees its shares as undervalued against near-term fundamentals. With the prior authorization nearly used up, the move removes any near-term ceiling on capital return and tightens the float slightly, an offset to the sector's cautious demand picture rather than a change to it.