Woodward, Inc. (WWD) AI Stock Analysis
WWD AI stock analysis summary
AI ResearchWoodward, Inc. (WWD) designs, manufactures, and services control solutions across aerospace and industrial markets worldwide. Trailing twelve month revenue reached $4.19B with an operating margin of 17.8% and return on equity of 22.3%. The company generated $340.4M in free cash flow in FY2025 and trades at a trailing P/E of 36.5x.
- Market cap
- $19.40B
- Revenue (TTM)
- $4.19B
- P/E
- 36.5x fwd 31.6x
- 1Y return
- 33.5% S&P 500 16.8%
- Avg. target
- $424.67 29.3% vs last close
Bull case
- Quarterly revenue grew 21.2% and earnings grew 36.4% year-over-year in the quarter ended June 30, 2026.
- Trailing twelve month operating margin reached 17.8%, well above the US-listed Industrials peer median of 11.7%.
- Woodward beat EPS estimates in all 4 of its last 4 quarters, supporting full-year FY2026 consensus EPS growth of 37.5%.
Bear case
- Valuation multiples trade at a premium to peers, including a trailing P/E of 36.5x versus the US-listed Industrials median of 24.8x.
- The stock traded 9.9% below its 200-day average as of October 16, 2026, and sits below its 52-week high of $450.92.
- Total debt of $1.36B exceeds cash and short-term investments of $474.9M, leaving net debt at $885.2M.
What Woodward does
Woodward, Inc. designs, manufactures, and services control solutions for aerospace and industrial markets. The company operates two segments: Aerospace and Industrial. In Aerospace, it offers fuel pumps, actuators, air valves, and flight deck controls used in turbine engines, nacelles, and aircraft systems across commercial, private, and defense platforms. It also provides maintenance, repair, and overhaul (MRO) aftermarket services. In the Industrial segment, Woodward supplies actuators, valves, fuel injection systems, and ignition systems for industrial gas and steam turbines, compressors, and reciprocating engines. Founded in 1870 and based in Fort Collins, Colorado, Woodward employs 10,200 people.
Growth and profitability
Woodward grew annual revenue from $2.25B in FY2021 to $3.57B in FY2025, recording a 5-year revenue CAGR of 7.4% from FY2020 to FY2025. Annual net income expanded from $208.6M in FY2021 to $442.1M in FY2025, while diluted EPS increased from $3.24 to $6.89 over the same period. Operating margin rose from 11.3% in FY2021 to 14.3% in FY2025, and reached 17.8% over the trailing twelve months. For the latest quarter ended June 30, 2026, quarterly revenue grew 21.2% year-over-year, and quarterly earnings grew 36.4% year-over-year. Trailing twelve month revenue stood at $4.19B with EPS of $8.99.
Balance sheet and cash flow
As of June 30, 2026, Woodward held $474.9M in cash and short-term investments against total debt of $1.36B, resulting in net debt of $885.2M. Shareholders' equity was $2.47B, total assets were $5.20B, the current ratio stood at 1.65, and the debt-to-equity ratio was 0.55. In FY2025, operating cash flow was $471.3M and capital expenditures were $130.9M, leaving free cash flow of $340.4M. Capital returned to shareholders in FY2025 included $172.9M in share buybacks and $65.0M in dividends paid, contributing to a 5.8% reduction in share count over 5 years.
Valuation and performance
Woodward trades at a trailing P/E of 36.5x and a forward P/E of 31.6x, compared to medians of 24.8x and 17.2x for its US-listed Industrials peers. Its enterprise value of $20.15B yields an EV-to-EBITDA multiple of 23.5x, above the peer median of 13.9x, while its price-to-sales ratio is 4.6x compared to 1.5x for peers. Over the past year, Woodward generated a 33.5% return, outperforming the S&P 500 (SPY) return of 16.8%. Over 5 years, the stock returned 193.2% versus 83.0% for the S&P 500. At $328.48, shares traded 9.9% below their 200-day moving average.
WWD dividend
Woodward pays a quarterly dividend with an annualized forward payout of $1.28, yielding 0.39%. Its payout ratio is 13.7%, and dividends have been paid for 32 consecutive years. The dividend grew at an annualized rate of 16.4% over the past 5 years. Total dividends paid in FY2025 amounted to $65.0M, and the last ex-dividend date was November 19, 2026.
What analysts expect
Wall Street analysts coverage consists of 9 Strong Buy, 1 Buy, and 3 Hold ratings, with 0 Sell ratings. The mean price target is $424.67, representing a 29.3% premium over the last closing price of $328.48. For the fiscal year ending September 30, 2026, consensus estimates project revenue of $4.34B and EPS of $9.48, representing 37.5% EPS growth. Woodward has beaten EPS estimates in each of the last 4 quarters, and its next earnings report is scheduled for November 23, 2026.
Key risks and what to watch
- Net debt stood at $885.2M as of June 30, 2026, which requires ongoing cash flow to manage debt obligations.
- Projected revenue growth slows from current fiscal year estimates to 8.6% in the next fiscal year.
- A PEG ratio of 2.11 reflects a premium valuation relative to medium-term earnings growth expectations.
- Institutional ownership is high at 93.8%, which could heighten trading sensitivity to institutional allocation shifts.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this WWD AI stock analysis
This page is an AI-written research summary of Woodward, Inc. (WWD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: WWD income statement, WWD balance sheet, WWD key metrics, WWD analyst forecast, WWD chart. See the WWD stock overview for the latest quote and news.
WWD AI stock analysis FAQ
What was Woodward's revenue and earnings growth in the latest quarter?
For the quarter ended June 30, 2026, Woodward delivered 21.2% year-over-year revenue growth and 36.4% year-over-year earnings growth.
What is Woodward's dividend yield and track record?
Woodward offers an annual forward dividend of $1.28, which corresponds to a 0.39% dividend yield and a 13.7% payout ratio. The company has paid dividends for 32 consecutive years.
How does Woodward's valuation compare to its sector peers?
Woodward trades at a trailing P/E of 36.5x and an EV-to-EBITDA of 23.5x, compared to US-listed Industrials medians of 24.8x and 13.9x, respectively.
What are analysts forecasting for Woodward's next fiscal year?
For the fiscal year ending September 30, 2027, 11 analysts estimate revenue of $4.71B (8.6% growth) and EPS of $10.72 (13.2% growth).
When is Woodward's next earnings date?
Woodward's next earnings report is scheduled for November 23, 2026.