Woodward (NASDAQ:WWD) Announces Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Woodward (NASDAQ:WWD) issued its quarterly earnings results on Wednesday. The technology company reported $2.52 EPS for the quarter, beating the consensus estimate of $2.44 by $0.08, FiscalAI reports. The firm had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.11 billion. Woodward had a return on equity of 20.12% and a net margin of 12.85%. Woodward updated its FY 2026 guidance to 9.300-9.500 EPS.

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

• Strong third-quarter results prompted higher 2026 guidance: Sales increased 21% year over year to $1.1 billion, adjusted EPS rose 43% to $2.52, and the company raised adjusted EPS guidance to $9.30-$9.50.
• Aerospace sales grew 19%, led by a 34% increase in commercial OEM and 24% growth in commercial services, while aerospace margins expanded to 24%. Management cited strong airframer build rates, sustained aftermarket demand, and improving supply-chain visibility.
• Industrial sales rose 26%, with core industrial sales up 19% and strong demand in marine, LNG infrastructure, and power generation, particularly data-center-related applications. Management said customer forecasts for power-generation demand continue to rise into 2027 and beyond.
• Pricing actions and higher volume drove significant margin expansion, while lean transformation and automation are beginning to improve factory productivity. Woodward expects automation initiatives to reduce approximately 1,000 incremental direct-labor hires by 2029 while supporting capacity growth.
• Management expects pricing to moderate from roughly 10% in the quarter to a more normal 3%-5% range, increasing the importance of productivity gains for future margin expansion. Free cash flow remains constrained by higher inventory and working-capital investment, and fourth-quarter capital expenditures are expected to rise substantially.

Woodward Stock Performance

WWD traded down $25.13 during trading hours on Wednesday, reaching $385.42. The company’s stock had a trading volume of 1,101,137 shares, compared to its average volume of 717,322. The company’s 50-day moving average is $394.83 and its 200-day moving average is $376.65. Woodward has a 52 week low of $233.31 and a 52 week high of $450.92. The firm has a market cap of $22.96 billion, a PE ratio of 46.16, a price-to-earnings-growth ratio of 2.50 and a beta of 0.86. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.19 and a current ratio of 1.73.

Woodward Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Thursday, August 20th will be paid a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Thursday, August 20th. Woodward’s dividend payout ratio is 15.33%.

Key Stories Impacting Woodward

Here are the key news stories impacting Woodward this week:

• Positive Sentiment: Woodward reported quarterly earnings of $2.52 per share, above the Zacks consensus estimate of $2.39 and the prior-year result of $1.76, representing substantial year-over-year earnings growth. Woodward Tops Q3 Earnings Estimates
• Positive Sentiment: Management raised fiscal 2026 earnings guidance after a strong third quarter and expressed confidence in fourth-quarter performance. The updated EPS range is $9.30-$9.50, while revenue is expected at approximately $4.3-$4.4 billion. Woodward Reports Third Quarter Fiscal Year 2026 Results
• Positive Sentiment: Royal Bank of Canada maintained a Buy rating and issued an Outperform assessment, providing continued analyst support for WWD following the results. RBC Capital Maintains Buy Rating
• Neutral Sentiment: Third-quarter revenue was approximately $1.11 billion, matching analyst expectations. The EPS beat was therefore the primary upside surprise, while the revenue outlook is near consensus rather than materially above it. Woodward Quarterly Results
• Negative Sentiment: Despite the earnings beat and higher guidance, the stock was under pressure, suggesting investors may have expected a larger outlook increase or are taking profits after a substantial prior rally. WWD also trades at a relatively elevated valuation, with a reported P/E ratio above 46, leaving less room for execution disappointments.

Insiders Place Their Bets

In other Woodward news, EVP Karrie M. Bem sold 280 shares of Woodward stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $372.66, for a total transaction of $104,344.80. Following the completion of the transaction, the executive vice president directly owned 4,297 shares of the company’s stock, valued at $1,601,320.02. The trade was a 6.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Daniel G. Korte sold 14,700 shares of the company’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $356.05, for a total transaction of $5,233,935.00. Following the completion of the transaction, the director owned 4,434 shares in the company, valued at approximately $1,578,725.70. This represents a 76.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 15,629 shares of company stock valued at $5,570,005. Company insiders own 0.71% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of WWD. Aster Capital Management DIFC Ltd acquired a new stake in Woodward during the fourth quarter worth approximately $35,000. Employees Retirement System of Texas bought a new stake in shares of Woodward during the third quarter worth approximately $119,000. Northwestern Mutual Wealth Management Co. grew 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 last quarter. Greenline Wealth Management LLC acquired a new position in shares of Woodward in the fourth quarter valued at approximately $126,000. Finally, EverSource Wealth Advisors LLC increased its stake in shares of Woodward by 286.5% during the second quarter. EverSource Wealth Advisors LLC now owns 630 shares of the technology company’s stock worth $154,000 after purchasing an additional 467 shares during the period. Institutional investors and hedge funds own 81.18% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on WWD shares. Weiss Ratings reiterated a “buy (b)” rating on shares of Woodward in a research note on Friday, July 17th. Truist Financial boosted their target price on shares of Woodward from $404.00 to $415.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Wall Street Zen cut shares of Woodward from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 9th. Royal Bank Of Canada reissued an “outperform” rating and issued a $450.00 price objective on shares of Woodward in a research report on Monday. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $470.00 price objective on shares of Woodward in a research note on Friday, May 1st. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and an average price target of $395.50.

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.