Woodward (NASDAQ:WWD) Hits New 1-Year High After Better-Than-Expected Earnings

Woodward, Inc. (NASDAQ:WWD)’s share price reached a new 52-week high during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $378.00 and last traded at $374.4560, with a volume of 7184 shares trading hands. The stock had previously closed at $327.25.

The technology company reported $2.17 EPS for the quarter, beating the consensus estimate of $1.65 by $0.52. Woodward had a net margin of 12.89% and a return on equity of 19.07%. The business had revenue of $996.45 million during the quarter, compared to analyst estimates of $901.92 million. During the same quarter in the previous year, the business posted $1.35 EPS. The company’s quarterly revenue was up 28.8% compared to the same quarter last year. Woodward has set its FY 2026 guidance at 8.200-8.600 EPS.

Woodward Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 5th. Shareholders of record on Thursday, February 19th will be issued a dividend of $0.32 per share. 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 (DPR) is currently 15.58%.

Woodward announced that its Board of Directors has initiated a stock repurchase 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 reacquire up to 11.6% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s management believes its shares are undervalued.

Trending Headlines about Woodward

Here are the key news stories impacting Woodward this week:

• Positive Sentiment: Woodward posted a clear earnings beat for Q1 FY26 — EPS and revenue topped estimates, revenue grew ~29% year-over-year, and management raised FY26 guidance (EPS range 8.20–8.60). The combination of a beat plus higher guidance is the main catalyst behind the rally. Woodward Delivers Strong Q4 CY2025 Numbers
• Positive Sentiment: Market commentary is framing Woodward as a guidance-driven winner this earnings season — investors are rewarding companies that beat and raise outlooks, and Woodward fits that playbook given its exposure to aerospace and data-center/self-generation demand. Palantir and Woodward Jumped on Earnings Beats
• Positive Sentiment: Analysts have been raising targets after the print — UBS bumped its target to $417 and Truist to $404, reflecting renewed buy-side confidence and providing additional upside support for the stock. UBS Price Target Raise
• Neutral Sentiment: Woodward hit a 52-week high on the rally, prompting questions about whether the momentum can continue — readers should watch order trends and margin outlook for confirmation. Zacks: Hits Fresh High
• Neutral Sentiment: Management also announced a dividend increase, which supports shareholder returns but has raised questions about valuation given the stock’s run-up. Monitor payout policy vs. cash flow. Dividend Hike and Earnings Strength
• Neutral Sentiment: Corporate housekeeping: shareholders approved director and governance items at the annual meeting — routine but removes a potential governance overhang. Shareholder Approvals
• Negative Sentiment: Valuation is a near-term risk: after the strong move the stock trades at a rich multiple (high P/E and PEG), prompting some analysts and market pieces to question how much upside remains without continued beat-and-raise performance. Valuation Discussion

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on WWD. The Goldman Sachs Group raised their price objective on Woodward from $362.00 to $408.00 and gave the company a “buy” rating in a research report on Tuesday. Truist Financial raised their price target on shares of Woodward from $366.00 to $404.00 and gave the company a “buy” rating in a report on Tuesday. UBS Group lifted their price objective on shares of Woodward from $378.00 to $417.00 and gave the stock a “buy” rating in a research report on Tuesday. TD Cowen increased their target price on shares of Woodward from $350.00 to $390.00 and gave the company a “hold” rating in a research report on Tuesday. Finally, Jefferies Financial Group raised their target price on shares of Woodward from $350.00 to $375.00 and gave the company a “buy” rating in a research note on Friday, January 16th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $342.80.

Insiders Place Their Bets

In other news, Director John D. Cohn sold 3,000 shares of Woodward stock in a transaction on Wednesday, November 26th. The shares were sold at an average price of $296.33, for a total transaction of $888,990.00. Following the completion of the sale, the director directly owned 21,575 shares in the company, valued at approximately $6,393,319.75. The trade was a 12.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Gregg C. Sengstack sold 7,000 shares of the company’s stock in a transaction on Thursday, December 4th. The shares were sold at an average price of $300.76, for a total value of $2,105,320.00. Following the completion of the transaction, the director directly owned 9,610 shares in the company, valued at approximately $2,890,303.60. The trade was a 42.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 40,000 shares of company stock valued at $11,908,210. Insiders own 0.71% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. State Street Corp increased its holdings in Woodward by 3.5% in the 3rd quarter. State Street Corp now owns 2,388,758 shares of the technology company’s stock worth $603,663,000 after buying an additional 80,538 shares during the period. Earnest Partners LLC boosted its holdings in shares of Woodward by 0.6% in the 3rd quarter. Earnest Partners LLC now owns 1,403,551 shares of the technology company’s stock valued at $354,691,000 after acquiring an additional 8,307 shares during the last quarter. Invesco Ltd. boosted its holdings in shares of Woodward by 122.0% in the 3rd quarter. Invesco Ltd. now owns 905,578 shares of the technology company’s stock valued at $228,849,000 after acquiring an additional 497,722 shares during the last quarter. Bank of America Corp DE increased its stake in shares of Woodward by 2.2% in the third quarter. Bank of America Corp DE now owns 887,938 shares of the technology company’s stock worth $224,391,000 after acquiring an additional 18,821 shares during the period. Finally, Norges Bank purchased a new position in shares of Woodward during the second quarter worth $201,555,000. 81.18% of the stock is currently owned by hedge funds and other institutional investors.

Woodward Stock Up 0.6%

The company has a market capitalization of $22.40 billion, a price-to-earnings ratio of 47.02, a P/E/G ratio of 2.90 and a beta of 1.00. The business’s 50-day moving average is $315.27 and its 200-day moving average is $275.12. The company has a quick ratio of 1.36, a current ratio of 2.05 and a debt-to-equity ratio of 0.18.

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.