Woodward Reports Strong Q1, Raises FY26 Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy WWD?
Source: seekingalpha
- Strong Earnings Beat: Woodward reported an adjusted EPS of $2.17 for Q1 2026, surpassing the consensus estimate of $1.65, with revenue hitting $996 million, a 29% year-over-year increase, driven by robust demand in both Aerospace and Industrial segments.
- Upgraded Full-Year Outlook: The company raised its FY26 EPS guidance to a range of $8.20–$8.60, exceeding the consensus estimate of $8.36, while also increasing sales growth expectations from 7%–12% to 14%–18%, indicating a strong business recovery.
- Significant Free Cash Flow Growth: Free cash flow surged to $70 million, a substantial increase from just $1 million in the same period last year, demonstrating notable improvements in cash management and profitability.
- Aerospace and Industrial Performance: The Aerospace segment achieved sales of $635 million, up 29%, with Commercial Services soaring by 50%, while the Industrial segment reported $362 million in sales, a 30% increase, primarily driven by Marine Transportation and Oil & Gas sectors.
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Analyst Views on WWD
Wall Street analysts forecast WWD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WWD is 360.00 USD with a low forecast of 329.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 317.840
Low
329.00
Averages
360.00
High
400.00
Current: 317.840
Low
329.00
Averages
360.00
High
400.00
About WWD
Woodward, Inc. designs, manufactures, and services energy conversion and control solutions for the aerospace and industrial equipment markets. The Company’s segments include Aerospace and Industrial. The Aerospace segment offers fuel controls and airframe solutions for commercial, defense, business and general aviation. It offers aircraft engine controls, actuation and control systems, flight deck controls, and space and defense solutions. Its aircraft engine controls include fuel control systems, fuel injection and ignition systems, engine actuation systems, and air management. Its actuation and control systems include electromechanical actuation, hydraulic actuation, precision motors, and thrust reverser actuation systems. Its Industrial segment offers control solutions for reliable and clean power generation and control solutions for critical equipment in a decarbonized world. Its products include easYgen-3000XT and Aeroderivative Gas Turbine Gas Fuel Valves.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Woodward, Inc. Reports Strong Q1 2026 Earnings, Raises Guidance
- Significant Sales Growth: Woodward reported net sales of $996 million for Q1 2026, a 29% year-over-year increase, with Aerospace segment sales reaching $635 million, driven by a 50% rise in commercial services, indicating robust market demand and execution.
- Enhanced Profitability: The company achieved earnings per share of $2.17, up 54% from $1.42 a year ago, reflecting successful cost control and operational efficiency, which further boosts investor confidence.
- Strategic Shift: Woodward announced plans to wind down its China on-highway product lines by the end of fiscal 2026, expecting restructuring costs of $20 million to $25 million, aimed at optimizing the long-term growth strategy for its Industrial segment.
- Optimistic Outlook: Following a strong start, Woodward raised its 2026 sales and earnings guidance, projecting Aerospace sales growth of 15-20% and consolidated sales growth of 14-18%, demonstrating management's confidence in future market conditions.
See More
Woodward Reports Strong Q1, Raises FY26 Outlook
- Strong Earnings Beat: Woodward reported an adjusted EPS of $2.17 for Q1 2026, surpassing the consensus estimate of $1.65, with revenue hitting $996 million, a 29% year-over-year increase, driven by robust demand in both Aerospace and Industrial segments.
- Upgraded Full-Year Outlook: The company raised its FY26 EPS guidance to a range of $8.20–$8.60, exceeding the consensus estimate of $8.36, while also increasing sales growth expectations from 7%–12% to 14%–18%, indicating a strong business recovery.
- Significant Free Cash Flow Growth: Free cash flow surged to $70 million, a substantial increase from just $1 million in the same period last year, demonstrating notable improvements in cash management and profitability.
- Aerospace and Industrial Performance: The Aerospace segment achieved sales of $635 million, up 29%, with Commercial Services soaring by 50%, while the Industrial segment reported $362 million in sales, a 30% increase, primarily driven by Marine Transportation and Oil & Gas sectors.
See More
Woodward Q1 Earnings Beat Expectations, Raises 2026 Guidance
- Earnings Surprise: Woodward reported a Q1 non-GAAP EPS of $2.17, exceeding expectations by $0.52, indicating a significant enhancement in profitability amid a strong demand environment.
- Significant Revenue Growth: The company achieved revenues of $996 million in Q1, reflecting a year-over-year increase of 28.8%, surpassing market expectations by $103.21 million, showcasing robust performance in both aerospace and industrial sectors.
- Raised 2026 Guidance: Following the strong Q1 results, Woodward has raised its 2026 sales growth outlook from 7%-12% to 14%-18%, with expected EPS increasing to $8.20-$8.60, demonstrating confidence in future market conditions.
- Segment Performance: The aerospace segment's sales growth forecast has been adjusted to 15%-20%, while the industrial segment's outlook has been raised to 11%-14%, indicating strong growth potential across all business areas.
See More
Woodward WWD Q1 2026 Earnings Call Transcript
See More
Major Indexes Rebound, Palantir Soars on Strong Earnings
- Major Indexes Rebound: Major stock indexes rebounded from key support levels, indicating renewed investor confidence in economic recovery, which could attract more capital inflows and drive future market growth.
- Palantir Soars on Earnings: Following the release of strong earnings, Palantir's stock surged, reflecting the company's ongoing growth and profitability in the data analytics sector, which may enhance market expectations for its future performance.
- SpaceX and xAI Merger Confirmed: Elon Musk confirmed the merger between SpaceX and xAI, a strategic move that could strengthen both companies' competitive positions in AI and aerospace, driving technological innovation and market expansion.
- Improving Market Sentiment: With the rebound of major indexes and improved performance of individual stocks, market sentiment is gradually warming, and the optimistic outlook on future economic prospects may encourage more capital to flow into the stock market.
See More
Palantir, Teradyne, and Others See Stock Movements After Earnings Reports
- Palantir Earnings Beat: Palantir Technologies reported adjusted earnings of 25 cents per share, exceeding analysts' expectations of 23 cents, with revenue of $1.41 billion surpassing the $1.33 billion estimate, resulting in a nearly 5% stock increase.
- NXP Cautious Outlook: Despite NXP Semiconductors beating fourth-quarter estimates, its first-quarter non-GAAP gross margin guidance of 57% aligned with consensus, leading to a nearly 6% drop in shares.
- Teradyne Strong Guidance: Teradyne issued optimistic guidance for the first quarter, projecting revenue between $1.15 billion and $1.25 billion, significantly above the $935 million expected by analysts, causing a 20% surge in stock price.
- DaVita Strong Performance: DaVita anticipates adjusted earnings between $13.60 and $15 per share for the full year, exceeding the FactSet consensus of $12.82, which led to a 12% increase in shares during after-hours trading.
See More
Woodward, Inc. Reports Strong Q1 2026 Earnings, Raises Guidance
- Significant Sales Growth: Woodward reported net sales of $996 million for Q1 2026, a 29% year-over-year increase, with Aerospace segment sales reaching $635 million, driven by a 50% rise in commercial services, indicating robust market demand and execution.
- Enhanced Profitability: The company achieved earnings per share of $2.17, up 54% from $1.42 a year ago, reflecting successful cost control and operational efficiency, which further boosts investor confidence.
- Strategic Shift: Woodward announced plans to wind down its China on-highway product lines by the end of fiscal 2026, expecting restructuring costs of $20 million to $25 million, aimed at optimizing the long-term growth strategy for its Industrial segment.
- Optimistic Outlook: Following a strong start, Woodward raised its 2026 sales and earnings guidance, projecting Aerospace sales growth of 15-20% and consolidated sales growth of 14-18%, demonstrating management's confidence in future market conditions.
See More
Woodward Reports Strong Q1, Raises FY26 Outlook
- Strong Earnings Beat: Woodward reported an adjusted EPS of $2.17 for Q1 2026, surpassing the consensus estimate of $1.65, with revenue hitting $996 million, a 29% year-over-year increase, driven by robust demand in both Aerospace and Industrial segments.
- Upgraded Full-Year Outlook: The company raised its FY26 EPS guidance to a range of $8.20–$8.60, exceeding the consensus estimate of $8.36, while also increasing sales growth expectations from 7%–12% to 14%–18%, indicating a strong business recovery.
- Significant Free Cash Flow Growth: Free cash flow surged to $70 million, a substantial increase from just $1 million in the same period last year, demonstrating notable improvements in cash management and profitability.
- Aerospace and Industrial Performance: The Aerospace segment achieved sales of $635 million, up 29%, with Commercial Services soaring by 50%, while the Industrial segment reported $362 million in sales, a 30% increase, primarily driven by Marine Transportation and Oil & Gas sectors.
See More
Woodward Q1 Earnings Beat Expectations, Raises 2026 Guidance
- Earnings Surprise: Woodward reported a Q1 non-GAAP EPS of $2.17, exceeding expectations by $0.52, indicating a significant enhancement in profitability amid a strong demand environment.
- Significant Revenue Growth: The company achieved revenues of $996 million in Q1, reflecting a year-over-year increase of 28.8%, surpassing market expectations by $103.21 million, showcasing robust performance in both aerospace and industrial sectors.
- Raised 2026 Guidance: Following the strong Q1 results, Woodward has raised its 2026 sales growth outlook from 7%-12% to 14%-18%, with expected EPS increasing to $8.20-$8.60, demonstrating confidence in future market conditions.
- Segment Performance: The aerospace segment's sales growth forecast has been adjusted to 15%-20%, while the industrial segment's outlook has been raised to 11%-14%, indicating strong growth potential across all business areas.
See More
Woodward WWD Q1 2026 Earnings Call Transcript
See More
Major Indexes Rebound, Palantir Soars on Strong Earnings
- Major Indexes Rebound: Major stock indexes rebounded from key support levels, indicating renewed investor confidence in economic recovery, which could attract more capital inflows and drive future market growth.
- Palantir Soars on Earnings: Following the release of strong earnings, Palantir's stock surged, reflecting the company's ongoing growth and profitability in the data analytics sector, which may enhance market expectations for its future performance.
- SpaceX and xAI Merger Confirmed: Elon Musk confirmed the merger between SpaceX and xAI, a strategic move that could strengthen both companies' competitive positions in AI and aerospace, driving technological innovation and market expansion.
- Improving Market Sentiment: With the rebound of major indexes and improved performance of individual stocks, market sentiment is gradually warming, and the optimistic outlook on future economic prospects may encourage more capital to flow into the stock market.
See More
Palantir, Teradyne, and Others See Stock Movements After Earnings Reports
- Palantir Earnings Beat: Palantir Technologies reported adjusted earnings of 25 cents per share, exceeding analysts' expectations of 23 cents, with revenue of $1.41 billion surpassing the $1.33 billion estimate, resulting in a nearly 5% stock increase.
- NXP Cautious Outlook: Despite NXP Semiconductors beating fourth-quarter estimates, its first-quarter non-GAAP gross margin guidance of 57% aligned with consensus, leading to a nearly 6% drop in shares.
- Teradyne Strong Guidance: Teradyne issued optimistic guidance for the first quarter, projecting revenue between $1.15 billion and $1.25 billion, significantly above the $935 million expected by analysts, causing a 20% surge in stock price.
- DaVita Strong Performance: DaVita anticipates adjusted earnings between $13.60 and $15 per share for the full year, exceeding the FactSet consensus of $12.82, which led to a 12% increase in shares during after-hours trading.
See More
