Woodward (NASDAQ:WWD) Issues Quarterly Earnings Results, Beats Expectations By $0.52 EPS

Woodward (NASDAQ:WWD) posted its quarterly earnings data on Monday. The technology company reported $2.17 EPS for the quarter, beating the consensus estimate of $1.65 by $0.52, FiscalAI reports. The business had revenue of $996.45 million for the quarter, compared to analysts’ expectations of $901.92 million. Woodward had a net margin of 12.89% and a return on equity of 19.32%. The firm’s revenue was up 28.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.35 EPS. Woodward updated its FY 2026 guidance to 8.200-8.600 EPS.

Here are the key takeaways from Woodward’s conference call:

• Woodward reported an exceptional Q1 with sales up 29% and EPS up 54%, and raised FY26 consolidated sales guidance to +14%–18% and EPS to $8.20–$8.60.
• Both segments delivered strong margin expansion—aerospace +420 bps and industrial +410 bps—and company-wide pricing is now being modeled closer to ~7% for the year (vs. prior 5%).
• Management decided to wind down the volatile China On-Highway business by year-end, expecting about $20–$25M of wind-down costs and continued reporting of the business through the wind-down period.
• Woodward is carrying higher-than-planned inventory to meet demand, which kept the FY26 free cash flow guide unchanged at $300–$350M despite stronger earnings in Q1, with inventory-turn improvement not expected until late 2026/early 2027.
• Order backlog and demand support the high end of the guide, but execution risks remain from supply-chain constraints (~30 suppliers on risk watch) and test-stand/capacity limits—company is expanding MRO capacity (Prestwick, Rockford) and licensing partners to mitigate.

Woodward Stock Up 13.4%

Woodward stock opened at $371.17 on Wednesday. The company has a debt-to-equity ratio of 0.18, a current ratio of 2.08 and a quick ratio of 1.36. The company’s 50-day moving average is $313.77 and its 200-day moving average is $274.42. The firm has a market capitalization of $22.27 billion, a PE ratio of 46.75, a P/E/G ratio of 2.73 and a beta of 1.00. Woodward has a fifty-two week low of $146.82 and a fifty-two week high of $384.66.

Woodward Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 5th. Shareholders of record on Thursday, February 19th will be paid a $0.32 dividend. This is an increase from Woodward’s previous quarterly dividend of $0.28. This represents a $1.28 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Thursday, February 19th. Woodward’s dividend payout ratio is 15.58%.

Analyst Ratings Changes

A number of brokerages recently issued reports on WWD. TD Cowen lifted their target price on Woodward from $350.00 to $390.00 and gave the company a “hold” rating in a research report on Tuesday. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Woodward in a research note on Wednesday, January 21st. Zacks Research upgraded shares of Woodward from a “hold” rating to a “strong-buy” rating in a report on Tuesday, January 13th. Jefferies Financial Group increased their target price on shares of Woodward from $350.00 to $375.00 and gave the stock a “buy” rating in a report on Friday, January 16th. Finally, The Goldman Sachs Group set a $408.00 price target on shares of Woodward in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $342.80.

Insider Activity at Woodward

In related news, COO Thomas G. Cromwell sold 5,000 shares of Woodward stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $297.88, for a total transaction of $1,489,400.00. Following the completion of the transaction, the chief operating officer owned 15,135 shares in the company, valued at approximately $4,508,413.80. This trade represents a 24.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director John D. Cohn sold 3,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 26th. The shares were sold at an average price of $296.33, for a total value of $888,990.00. Following the completion of the sale, the director owned 21,575 shares in the company, valued at $6,393,319.75. This represents a 12.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 40,000 shares of company stock worth $11,908,210. Insiders own 0.71% of the company’s stock.

Hedge Funds Weigh In On Woodward

Institutional investors and hedge funds have recently made changes to their positions in the company. Harvest Investment Services LLC acquired a new stake in Woodward during the 3rd quarter worth approximately $2,340,000. CANADA LIFE ASSURANCE Co increased its position in Woodward by 2.6% during the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 35,704 shares of the technology company’s stock worth $8,781,000 after buying an additional 915 shares during the period. Williamson Legacy Group LLC acquired a new stake in shares of Woodward during the third quarter worth $765,000. Dark Forest Capital Management LP bought a new stake in shares of Woodward in the third quarter valued at about $2,234,000. Finally, Untitled Investments LP bought a new stake in shares of Woodward in the third quarter valued at about $16,149,000. Institutional investors and hedge funds own 81.18% of the company’s stock.

Woodward News Summary

Here are the key news stories impacting Woodward this week:

• Positive Sentiment: Q1 beat and raised guidance — Woodward reported revenue of $996.5M (+~29% YoY) and EPS $2.17 vs. consensus ~$1.65; management raised FY2026 EPS guidance to $8.20–8.60 and revenue guidance to ~$4.1–4.2B, supporting the rally. Woodward Reports Strong First Quarter Fiscal Year 2026 Results
• Positive Sentiment: Analyst upgrades/target hikes — UBS raised its price target to $417 and Truist to $404 (both reiterating buy ratings), which likely amplified buying after the beat. UBS price target raise Truist price target raise
• Positive Sentiment: End-market strength and margin expansion — Company commentary and subsequent write-ups highlight strong Aerospace services and Industrial growth that expanded gross and operating margins in the quarter. WWD Q4 Deep Dive
• Positive Sentiment: Dividend hike — Woodward raised the quarterly dividend to $0.32 (up 14.3%), a sign of cash-flow confidence that can support investor sentiment. Dividend Hike Article
• Neutral Sentiment: Shareholder governance items approved — At the Jan. 28 annual meeting, stockholders approved director elections, compensation and governance changes; routine but removes a potential overhang. Shareholder Approvals
• Neutral Sentiment: Earnings call and transcripts available — Management and analysts discussed drivers (Aerospace services, Industrial orders, cash flow and capex) on the call; read the transcript/slides for detail on durability of demand. Earnings Slide Deck
• Negative Sentiment: Insider selling noted — Recent disclosures show insiders have sold shares (multiple executive sales cited), which some investors view as a mild caution flag on near-term sentiment. QuiverQuant insider trading summary
• Negative Sentiment: Valuation questions — Coverage after the beat highlights higher valuation multiples and asks whether the new guidance fully justifies the premium, a consideration for longer-term buyers. Valuation Article

Woodward declared that its Board of Directors has approved a share repurchase plan on Thursday, November 20th that permits the company to repurchase $1.80 billion in shares. This repurchase authorization permits the technology company to buy up to 11.6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

About Woodward

Woodward, Inc (NASDAQ: WWD) is a global leader in the design, manufacture and service of control systems and components for the aerospace and industrial markets. Founded in 1870 and headquartered in Fort Collins, Colorado, the company specializes in motion control, fuel systems, actuation, and digital control solutions. Its offerings enable precision management of flow, pressure and motion in critical applications ranging from aircraft engines and power turbines to hydraulic systems.

Woodward’s product portfolio is organized into two primary segments: Aerospace and Industrial.