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

Woodward (NASDAQ:WWD) released its quarterly earnings data on Monday. The technology company reported $2.17 EPS for the quarter, topping the consensus estimate of $1.65 by $0.52, FiscalAI reports. Woodward had a net margin of 12.39% and a return on equity of 17.68%. The company had revenue of $996.45 million during the quarter, compared to the consensus estimate of $901.92 million. During the same period last year, the firm earned $1.35 EPS. Woodward’s revenue for the quarter was up 28.8% on a year-over-year basis. 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 Performance

NASDAQ WWD opened at $327.25 on Tuesday. Woodward has a 52-week low of $146.82 and a 52-week high of $339.10. The company has a fifty day moving average of $312.22 and a 200-day moving average of $273.63. The company has a market capitalization of $19.64 billion, a P/E ratio of 45.51, a P/E/G ratio of 2.66 and a beta of 1.00. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.36 and a current ratio of 2.08.

Woodward Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 5th. Stockholders of record on Thursday, February 19th will be issued a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, February 19th. This is a positive change from Woodward’s previous quarterly dividend of $0.28. Woodward’s payout ratio is currently 15.58%.

Woodward announced that its board has authorized a stock buyback plan on Thursday, November 20th that authorizes the company to buyback $1.80 billion in outstanding shares. This buyback authorization authorizes the technology company to buy up to 11.6% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Insider Transactions at Woodward

In other news, Director John D. Cohn sold 3,000 shares of the stock in a transaction dated Wednesday, November 26th. The stock was sold at an average price of $296.33, for a total transaction of $888,990.00. Following the transaction, the director directly owned 21,575 shares in the company, valued at approximately $6,393,319.75. This represents a 12.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Gregg C. Sengstack sold 7,000 shares of the stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $300.76, for a total transaction of $2,105,320.00. Following the transaction, the director owned 9,610 shares in the company, valued at $2,890,303.60. The trade was a 42.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 40,000 shares of company stock worth $11,908,210. 0.71% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Woodward

Large investors have recently bought and sold shares of the stock. Employees Retirement System of Texas purchased a new position in shares of Woodward in the third quarter valued at about $119,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Woodward by 11.9% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 506 shares of the technology company’s stock worth $124,000 after acquiring an additional 54 shares during the period. EverSource Wealth Advisors LLC raised its position in shares of Woodward by 286.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 630 shares of the technology company’s stock worth $154,000 after acquiring an additional 467 shares in the last quarter. WINTON GROUP Ltd purchased a new stake in Woodward in the second quarter worth $202,000. Finally, Prelude Capital Management LLC purchased a new position in Woodward during the third quarter valued at $230,000. 81.18% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the company. UBS Group lifted their price target on Woodward from $345.00 to $378.00 and gave the company a “buy” rating in a research report on Thursday, January 15th. Zacks Research upgraded Woodward from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, January 13th. Deutsche Bank Aktiengesellschaft lifted their target price on Woodward from $360.00 to $400.00 and gave the company a “buy” rating in a report on Monday, December 22nd. Wall Street Zen raised shares of Woodward from a “buy” rating to a “strong-buy” rating in a report on Saturday, January 10th. Finally, Truist Financial set a $366.00 price objective on shares of Woodward in a research report on Friday, January 9th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, Woodward has a consensus rating of “Moderate Buy” and a consensus price target of $323.89.

Key Woodward News

Here are the key news stories impacting Woodward this week:

• Positive Sentiment: Q1 beat and upgraded guidance: Woodward reported EPS of $2.17 and revenue of $996.5M (roughly +29% YoY), beating estimates, and raised FY?2026 EPS guidance to $8.20–8.60 with revenue guidance above Street expectations — a primary driver of the stock’s uptick. Woodward Reports Strong First Quarter Fiscal Year 2026 Results
• Positive Sentiment: Margin expansion from aerospace services and industrial growth: Company commentary and analyst deep dives point to higher gross and operating margins driven by aerospace services mix and improving industrial demand. That margin leverage is supporting better-than-expected profit growth. WWD Q4 Deep Dive: Aerospace Services and Industrial Growth Propel Margin Expansion
• Positive Sentiment: Dividend increase: Board raised the quarterly payout to $0.32 (14% increase), reinforcing cash?flow confidence and returning capital to shareholders (yield remains modest). Income-minded investors may view this as a vote of management confidence. Woodward Increases Quarterly Dividend by 14 Percent
• Positive Sentiment: Analyst support and momentum: Multiple buy ratings and higher price targets have followed the print; institutional interest and upgraded forecasts are reinforcing the bullish case. Woodward Inc. (WWD) Stock Rises on Q1 2026 Earnings
• Neutral Sentiment: Strong cash and operating metrics: Company reported meaningful YoY improvement in cash from operations, higher cash balances and capex growth; these support the outlook but require monitoring for sustainability. Woodward Inc. (WWD) Stock Rises on Q1 2026 Earnings
• Neutral Sentiment: Call materials and transcript available: Management provided slides and an earnings call/transcript that detail segment dynamics and backlog — useful for investors wanting to dig into assumptions behind the guidance. Woodward, Inc. (WWD) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Valuation questions: The stronger results push multiples higher (WWD trades with an elevated P/E), and some commentators flag that the rally, plus the dividend bump, may already be priced into shares — raising near?term valuation risk. Woodward Dividend Hike And Earnings Strength Raise Valuation Questions
• Negative Sentiment: Insider selling: Recent disclosures show insider sales (no recent purchases), which some investors view as a cautionary sign on near?term upside. Track insider activity for ongoing context. Woodward Inc. (WWD) Stock Rises on Q1 2026 Earnings

Woodward Company Profile

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.