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

Woodward (NASDAQ:WWD) posted its earnings results on Monday. The technology company reported $2.17 EPS for the quarter, beating the consensus estimate of $1.65 by $0.52, FiscalAI reports. Woodward had a return on equity of 17.68% and a net margin of 12.39%.The firm 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 company earned $1.35 earnings per share. The business’s quarterly revenue 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 Up 3.0%

NASDAQ WWD traded up $9.41 during trading hours on Monday, hitting $327.25. 1,024,068 shares of the company were exchanged, compared to its average volume of 554,481. The firm has a market cap of $19.63 billion, a price-to-earnings ratio of 45.51, a PEG ratio of 2.66 and a beta of 1.02. The company has a quick ratio of 1.36, a current ratio of 2.08 and a debt-to-equity ratio of 0.18. Woodward has a 52-week low of $146.82 and a 52-week high of $339.10. The company has a 50 day moving average of $310.89 and a two-hundred day moving average of $273.14.

Woodward Increases Dividend

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

Insider Activity

In other Woodward news, Director John D. Cohn sold 3,000 shares of the company’s stock in a transaction dated Wednesday, November 26th. The shares were sold at an average price of $296.33, for a total value 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Thomas G. Cromwell sold 5,000 shares of the stock in a transaction on Monday, December 15th. The shares were sold at an average price of $297.88, for a total value of $1,489,400.00. Following the completion of the sale, the chief operating officer owned 15,135 shares of the company’s stock, valued at approximately $4,508,413.80. This represents a 24.83% 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. Company insiders own 0.71% of the company’s stock.

Institutional Investors Weigh In On Woodward

Institutional investors and hedge funds have recently modified their holdings of the business. Employees Retirement System of Texas bought a new position in Woodward in the 3rd quarter valued at about $119,000. Northwestern Mutual Wealth Management Co. raised its position in shares of Woodward by 11.9% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 506 shares of the technology company’s stock valued at $124,000 after purchasing an additional 54 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in shares of Woodward by 286.5% in the second quarter. EverSource Wealth Advisors LLC now owns 630 shares of the technology company’s stock worth $154,000 after acquiring an additional 467 shares during the period. WINTON GROUP Ltd purchased a new stake in Woodward during the 2nd quarter worth about $202,000. Finally, Prelude Capital Management LLC bought a new position in shares of Woodward in the third quarter valued at approximately $230,000. 81.18% of the stock is owned by institutional investors.

Key Woodward News

Here are the key news stories impacting Woodward this week:

• Positive Sentiment: Q1 beat — Woodward reported revenue of $996.5M (+29% YoY) and EPS of $2.17, materially above consensus; gross and operating margins improved and operating cash flow rose sharply. This beat explains much of the intraday upside. Woodward Inc. (WWD) Stock Rises on Q1 2026 Earnings
• Positive Sentiment: Raised FY‑2026 guidance — Management raised EPS guidance to $8.20–$8.60 (above consensus ~$7.97) and lifted revenue guidance to ~$4.1–$4.2B, signaling stronger forward growth and supporting multiple expansion. Guidance Update
• Positive Sentiment: Dividend hike — Board raised the quarterly cash dividend by 14% to $0.32/share, which may attract income-focused investors and signals confidence in cash flow. Woodward Increases Quarterly Dividend by 14 Percent
• Neutral Sentiment: Analyst backing and targets — Multiple recent buy/outperform ratings and a median price target around $362 provide supportive analyst context, but targets vary. Analyst Ratings & Targets
• Neutral Sentiment: Institutional flows mixed — Recent 13F moves show both large additions and reductions across funds; can influence liquidity/volatility but not a clear directional signal. Hedge Fund Activity
• Negative Sentiment: Insider selling — Executives have sold shares multiple times recently (no reported purchases), which investors may view as a modest red flag on near‑term insider confidence. Insider Trading Details

Woodward declared that its Board of Directors has authorized a stock buyback program on Thursday, November 20th that authorizes the company to buyback $1.80 billion in shares. This buyback authorization authorizes the technology company to reacquire up to 11.6% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

WWD has been the subject of a number of research reports. Truist Financial set a $366.00 target price on shares of Woodward in a research report on Friday, January 9th. Jefferies Financial Group boosted their target price on Woodward from $350.00 to $375.00 and gave the stock a “buy” rating in a research report on Friday, January 16th. Deutsche Bank Aktiengesellschaft raised their price target on shares of Woodward from $360.00 to $400.00 and gave the stock a “buy” rating in a report on Monday, December 22nd. Zacks Research raised Woodward from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, January 13th. Finally, UBS Group increased their price objective on shares of Woodward from $345.00 to $378.00 and gave the company a “buy” rating in a research report on Thursday, January 15th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $323.89.

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.