Woodward (WWD)
NASDAQ:WWD
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Woodward
(NASDAQ:WWD)
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Rating:70Outperform
Price Target:
$397.00
▲(0.55% Upside)
Action:ReiteratedDate:04/30/26
The score is driven primarily by solid financial fundamentals (growth and conservative leverage) and a notably upbeat earnings update with raised FY2026 guidance. This is tempered by weaker technical momentum (below key moving averages with negative MACD) and a relatively expensive valuation (high P/E with a low dividend yield), plus near-term margin and cash-conversion watch items.
Positive Factors
Record sales and upgraded guidance
Consistent double-digit top-line growth and a raised FY2026 outlook reflect durable demand across Aerospace and Industrial end markets. Strong program production and pricing momentum increase revenue visibility over multi-year engine/airframe cycles and support sustained operating leverage.
Negative Factors
Recent margin step-down
A material margin reset reduces earnings quality and weakens return metrics that previously supported reinvestment and buybacks. If cost pressures or adverse mix persist, margin erosion could constrain long-term free cash flow and limit operating leverage benefits.
Read all positive and negative factors
Positive Factors
Negative Factors
Record sales and upgraded guidance
Consistent double-digit top-line growth and a raised FY2026 outlook reflect durable demand across Aerospace and Industrial end markets. Strong program production and pricing momentum increase revenue visibility over multi-year engine/airframe cycles and support sustained operating leverage.
Read all positive factors
Woodward (WWD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.64B
Dividend Yield0.35%
Average Volume (3M)605.18K
Price to Earnings (P/E)39.9
Beta (1Y)1.21
Revenue Growth19.03%
EPS Growth34.44%
CountryUS
Employees9,300
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)2.27
Shares Outstanding59,615,868
10 Day Avg. Volume623,120
30 Day Avg. Volume605,183
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 Cap1.00
Enterprise Value/Revenue5.43
Enterprise Value/Gross Profit19.12
Enterprise Value/Ebitda28.77
Forecast
1Y Price Target
$430.13Price Target Upside8.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)9.06
Revenue Forecast (FY)$4.25B
Woodward Business Overview & Revenue Model
Company Description
Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates through two segments: Aerospace and Industrial. The Aerospace segment provides fuel pumps, metering units...
How the Company Makes Money
Woodward makes money mainly by selling engineered components and systems—along with aftermarket spares and services—into two primary segments:
1) Aerospace revenue streams
- Original equipment (OE) sales: Woodward supplies aircraft and defense pl...
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 | 753.83M | 680.38M | 556.24M | 406.09M | 334.72M | 383.83M |
| 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 | 1.12B | 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
380.17
Positive
346.40
Positive
299.19
Positive
Market Momentum
6.12
Negative
56.27
Neutral
52.57
Neutral
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 above the 20-day moving average (MA) of 375.27, above the 50-day MA of 380.17, and above the 200-day MA of 299.19, indicating a bullish trend. The MACD of 6.12 indicates Negative momentum. The RSI at 56.27 is Neutral, neither overbought nor oversold. The STOCH value of 52.57 is Neutral, 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 | $10.65B | 22.17 | 10.54% | 1.04% | 12.80% | 29.65% | |
73 Outperform | $16.49B | 17.63 | 12.25% | 0.09% | 9.48% | 18.21% | |
72 Outperform | $26.32B | 42.60 | 18.74% | 0.16% | 12.08% | 21.93% | |
70 Outperform | $21.64B | 39.88 | 9.70% | 0.35% | 19.03% | 34.44% | |
64 Neutral | $19.82B | 47.98 | 27.65% | 0.56% | 18.29% | 16.68% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | $11.63B | 606.55 | 1.20% | ― | 18.53% | 23.63% |
* Industrials Sector Average
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Woodward Corporate Events
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...
Executive/Board ChangesShareholder Meetings
Woodward shareholders approve directors, compensation and governance changes
Positive
Feb 3, 2026
On January 28, 2026, Woodward, Inc. held its Annual Meeting of Stockholders, at which shareholders elected three directors—David Hess, Mary Petryszyn, and Tana Utley—to three-year terms on the company’s board. Shareholders also a...
Dividends
Woodward Board Approves 14% Increase in Quarterly Dividend
Positive
Feb 2, 2026
On January 28, 2026, Woodward’s Board of Directors approved a 14 percent increase in the company’s quarterly cash dividend, raising it from $0.28 to $0.32 per share, with the dividend payable on March 5, 2026, to stockholders of record...
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.