July 21 (Reuters) - D.R. Horton ( DHI ) on Tuesday trimmed its full-year revenue forecast as the homebuilder's incentives for buyers facing high interest rates and rising costs weighed on the company's margins.

U.S. homebuilders are navigating rising costs due to persistent inflation, as well as President Donald Trump's tariffs on key construction raw material.

Here are some more details:

-- "Affordability constraints and cautious consumer sentiment continue to impact new home demand," D.R. Horton's ( DHI ) executive chairman, David Auld, said.

-- The weakening consumer sentiment has prompted builders to offer incentives such as mortgage rate buydowns and smaller, more affordable homes to stimulate demand - which in turn has hurt their margins.

-- The Arlington, Texas-based company now expects 2026 consolidated revenue in the range of $32.5 billion to $33.0 billion, compared with its previous forecast range of between $33.5 billion and $34.5 billion.

-- Analysts on an average expected $33.67 billion, according to data compiled by LSEG.

-- "We expect our sales incentives to remain elevated during the fourth quarter, with incentive levels dependent on demand, mortgage rates and other market conditions," Auld added.

-- On a diluted basis, the company earned $3.20 per share in the quarter ended June 30, compared with $3.36 per share a year ago.

(Reporting by Aatreyee Dasgupta and Anshuman Tripathy in Bengaluru; Editing by Devika Syamnath)