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Woodward
(NASDAQ:WWD)
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Rating:73Outperform
Price Target:
$483.00
▲(22.33% Upside)
Action:Upgraded
Date:06/26/26
WWD scores well on financial strength and trend, supported by raised FY2026 guidance and strong operational momentum. The main offsets are a high valuation (P/E ~50) and signs of near-term fundamental volatility, including the TTM margin reset and softer cash conversion, alongside extended technical momentum that increases pullback risk.
Positive Factors
Revenue Growth & Guidance
Management raised FY2026 sales and EPS guidance after record quarterly sales and multi-year revenue expansion across Aerospace and Industrial. This reflects durable demand, program-driven OEM production and aftermarket tails that underpin multi‑year revenue visibility and steady top-line growth.
Negative Factors
Margin Pressure & Reserves
Reported margins have declined recently and an Industrial product‑performance reserve materially compressed segment margins. Persistent reserve risk, inflation and strategic investments could keep margins below prior peaks, weakening medium‑term profitability and return on capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Guidance
Management raised FY2026 sales and EPS guidance after record quarterly sales and multi-year revenue expansion across Aerospace and Industrial. This reflects durable demand, program-driven OEM production and aftermarket tails that underpin multi‑year revenue visibility and steady top-line growth.
Read all positive factors
Woodward (WWD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.91B
Dividend Yield0.35%
Average Volume (3M)761.14K
Price to Earnings (P/E)48.6
Beta (1Y)1.18
Revenue Growth19.03%
EPS Growth34.44%
CountryUS
Employees9,300
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)8.60
Shares Outstanding59,582,863
10 Day Avg. Volume971,157
30 Day Avg. Volume761,143
Financial Highlights & Ratios
PEG Ratio1.75
Price to Book (P/B)5.87
Price to Sales (P/S)4.22
P/FCF Ratio44.22
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue6.64
Enterprise Value/Gross Profit23.40
Enterprise Value/Ebitda33.88
Forecast
1Y Price Target
$446.33Price Target Upside13.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)9.34
Revenue Forecast (FY)$4.31B
Woodward Business Overview & Revenue Model
Company Description
Woodward, Inc. (WWD) stands as a prominent global entity, specializing in the engineering, production, and maintenance of advanced control solutions for both the aerospace and industrial sectors. The company organizes its operations into two disti...
How the Company Makes Money
Woodward makes money primarily by selling engineered control solutions and related components to original equipment manufacturers (OEMs) and operators in its aerospace and industrial end markets, and by earning aftermarket revenue from the install...
Woodward Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum with record quarterly sales, double-digit top-line growth across Aerospace and Industrial, margin expansion, raised full‑year guidance, strategic M&A and partnership progress, and improved cash generation. Notable challenges include capacity and supply-chain constraints, targeted strategic investments and inflation that tempered flow-through, a product-performance reserve that compressed Industrial margins in the quarter, elevated inventory and working capital needs, and geopolitical/aftermarket visibility risks. Overall, the positives (record results, guidance raise, strong segment performance, balance-sheet strength and strategic actions) materially outweigh the near-term and manageable challenges.Positive Updates
Record Quarterly Sales
Net sales reached $1.1 billion in Q2, the first time Woodward surpassed $1 billion in a quarter, representing a 23% year-over-year increase.
Negative Updates
Capacity and Supply Chain Constraints
Management noted demand at times outstripped capacity and supply-chain activities (e.g., dual sourcing projects, additional test stands, procurement, installation and calibration), constraining output in the quarter and requiring capacity and supply chain expansion.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Sales
Net sales reached $1.1 billion in Q2, the first time Woodward surpassed $1 billion in a quarter, representing a 23% year-over-year increase.
Read all positive updates
Company Guidance
Woodward raised its fiscal 2026 outlook after a strong Q2, now expecting total sales growth of 20–23% (Aerospace up 21–24% with margins of 23.0–23.5% and Industrial up 18–20% with margins of 18.0–18.5%), adjusted EPS of $9.15–$9.45, free cash flow of $300–$350 million, and capital expenditures of approximately $290 million; the company also reiterated a targeted Aerospace flow‑through of ~30–35%, said adjusted effective tax rate guidance is unchanged, expects to maintain higher inventory levels (with initiatives to improve 2027 FCF), and forecasts average diluted shares of ~61.5 million while continuing to return $650–$700 million to shareholders via dividends and buybacks.Woodward Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.00B | 3.57B | 3.32B | 2.91B | 2.38B | 2.25B |
| Gross Profit | 1.13B | 956.29M | 876.48M | 677.58M | 525.30M | 551.06M |
| EBITDA | 783.79M | 680.38M | 618.10M | 443.41M | 355.07M | 409.61M |
| Net Income | 513.80M | 442.11M | 372.97M | 232.37M | 171.70M | 208.65M |
Balance Sheet | ||||||
| Total Assets | 4.97B | 4.63B | 4.37B | 4.01B | 3.81B | 4.09B |
| Cash, Cash Equivalents and Short-Term Investments | 501.17M | 327.43M | 282.27M | 137.45M | 107.84M | 448.46M |
| Total Debt | 1.15B | 722.40M | 895.14M | 748.67M | 798.86M | 749.62M |
| Total Liabilities | 2.44B | 2.06B | 2.19B | 1.94B | 1.91B | 1.88B |
| Stockholders Equity | 2.53B | 2.57B | 2.18B | 2.07B | 1.90B | 2.21B |
Cash Flow | ||||||
| Free Cash Flow | 388.56M | 340.37M | 342.81M | 229.81M | 140.77M | 426.98M |
| Operating Cash Flow | 564.22M | 471.29M | 439.09M | 306.31M | 193.64M | 464.67M |
| Investing Cash Flow | -214.88M | -119.55M | -89.22M | -73.55M | -65.45M | -35.30M |
| Financing Cash Flow | -221.89M | -313.93M | -218.05M | -194.24M | -442.38M | -136.32M |
Woodward Technical Analysis
Positive
394.83
Price Trends
378.59
Positive
379.28
Positive
332.53
Positive
Market Momentum
15.53
Positive
59.27
Neutral
17.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WWD, the sentiment is Positive. The current price of 394.83 is below the 20-day moving average (MA) of 406.68, above the 50-day MA of 378.59, and above the 200-day MA of 332.53, indicating a bullish trend. The MACD of 15.53 indicates Positive momentum. The RSI at 59.27 is Neutral, neither overbought nor oversold. The STOCH value of 17.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WWD.
Woodward Risk Analysis
Woodward disclosed 29 risk factors in its most recent earnings report. Woodward reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Woodward Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $28.08B | 55.37 | 19.64% | 0.16% | 12.22% | 21.44% | |
73 Outperform | $24.91B | 48.61 | 20.25% | 0.35% | 19.03% | 34.44% | |
73 Outperform | $16.08B | 17.65 | 12.13% | 0.09% | 9.48% | 18.21% | |
71 Outperform | $11.66B | 40.48 | 10.79% | 1.04% | 10.46% | 23.24% | |
68 Neutral | $17.50B | 50.68 | 27.91% | 0.56% | 21.39% | 19.25% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $10.38B | 320.13 | 1.26% | ― | 21.82% | 34.38% |
* Industrials Sector Average
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Woodward Corporate Events
Business Operations and StrategyDividends
Woodward Declares Quarterly Cash Dividend, Signals Ongoing Confidence
Positive
Jun 25, 2026
On June 24, 2026, Woodward, Inc.’s board of directors approved a quarterly cash dividend of $0.32 per share, underscoring the company’s ongoing capital return program to shareholders. The dividend is scheduled to be paid on September 3...
Executive/Board Changes
Woodward Announces Upcoming Retirement of Aerospace CTO
Neutral
Jun 5, 2026
On June 2, 2026, Woodward, Inc. announced that Terence J. Voskuil plans to retire from his position as Executive Vice President, Chief Technology Officer, Aerospace, effective October 2, 2026. He will remain in his current role until the effective...
Business Operations and StrategyPrivate Placements and Financing
Woodward Strengthens Liquidity with New Credit Facilities
Positive
May 28, 2026
On May 28, 2026, Woodward, Inc. entered into a Third Amended and Restated Credit Agreement, preserving a $1 billion revolving credit facility and extending its maturity from October 21, 2027 to May 28, 2031. That same day, the company drew $413 mi...
Dividends
Woodward Declares Quarterly Dividend, Signaling Ongoing Stability
Positive
Apr 27, 2026
On April 22, 2026, Woodward, Inc.’s board approved a quarterly cash dividend of $0.32 per share, reinforcing its practice of returning capital to shareholders through regular distributions. The dividend, announced publicly on April 27, 2026,...
Business Operations and StrategyExecutive/Board Changes
Woodward Adds Veteran Aerospace Leader to Board of Directors
Positive
Apr 24, 2026
On April 22, 2026, Woodward’s board elected veteran industrial and aerospace executive Frederico Fleury Curado to its Board of Directors and Audit Committee, effective June 1, 2026. The move expands the board from nine to 10 members and plac...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.