Upside case
Bull case
$622+62.5%
WWD would need investors to value it at roughly 69x earnings — about 27x more generous than today's 43x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
Woodward, Inc. (WWD) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
20
analysts
11 bullish · 1 bearish · 20 covering WWD
Strong Buy
0
Buy
11
Hold
8
Sell
1
Strong Sell
0
Consensus Target
$433
+13.3% vs today
Scenario Range
$264 – $622
Model bear to bull value window
Coverage
20
Published analyst ratings
Valuation Context
42.8x
Forward P/E · Market cap $22.8B
WWD price targets
Three scenarios for where WWD stock could go
Current
~$382
Confidence
65 / 100
Updated
May 1, 2026
Where we are now
Current · $382
Bear
$264
Base
$564
Bull
$622
Market caseClosest to today
Base case
$564+47.4%
At 63x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$264-30.8%
If investor confidence fades or macro conditions deteriorate, a 13x multiple contraction could push WWD down roughly 31% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Woodward, Inc.
WWD · NASDAQIndustrialsAerospace & DefenseSeptember year-end
Woodward is a specialized manufacturer of precision control systems and components for aircraft engines and industrial equipment. It generates revenue primarily from aerospace OEM sales (~60%) and aftermarket services (~25%), with industrial power generation and transportation making up the remainder. The company's moat lies in its deep engineering expertise and long-term relationships with major aerospace manufacturers—its systems are critical to aircraft safety and require extensive certification.
Market Cap
$22.8B
Revenue TTM
$4.0B
Net Income TTM
$514M
Net Margin
12.9%
WWD Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
83%Exceptional
vs consensus estimates
Avg EPS Surprise
+17.3%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$1.76/$1.62
Revenue
$915M/$941M
Q4 2025
EPS
$2.09/$1.88
Revenue
$995M/$940M
Q1 2026
EPS
$2.17/$1.65
Revenue
$996M/$890M
Q2 2026
EPS
$2.27/$2.10
Revenue
$1.1B/$1.0B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.76/$1.62 | +8.6% | $915M/$941M | -2.7% |
| Q4 2025 | $2.09/$1.88 | +11.2% | $995M/$940M | +5.9% |
| Q1 2026 | $2.17/$1.65 | +31.5% | $996M/$890M | +11.9% |
| Q2 2026 | $2.27/$2.10 | +8.1% | $1.1B/$1.0B | +8.0% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$4.3B
+8.7% YoY
FY2
$4.8B
+9.3% YoY
EPS Outlook
FY1
$9.48
+13.3% YoY
FY2
$10.60
+11.9% YoY
Trailing FCF (TTM)$389M
FCF Margin: 9.7%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
WWD beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
WWD Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2024
Total disclosed revenue $3.3B
Product Mix
Latest annual revenue by segment or product family
Aerospace
61.0%
+14.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Aerospace is the largest disclosed segment at 61.0% of FY 2024 revenue, up 14.7% YoY.
WWD Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Overvalued
Fair value est. $251 — implies -30.9% from today's price.
Premium to Fair Value
30.9%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WWD
53.2x
vs
S&P 500
25.2x
+111% premium
vs Industrials Trailing P/E
WWD
53.2x
vs
Industrials
25.9x
+106% premium
vs WWD 5Y Avg P/E
Today
53.2x
vs
5Y Average
32.4x
+64% premium
Forward PE
42.8x
S&P 500
19.1x
+124%
Industrials
20.8x
+105%
5Y Avg
—
—
Trailing PE
53.2x
S&P 500
25.2x
+111%
Industrials
25.9x
+106%
5Y Avg
32.4x
+64%
PEG Ratio
3.81x
S&P 500
1.75x
+118%
Industrials
1.59x
+140%
5Y Avg
—
—
EV/EBITDA
37.1x
S&P 500
15.3x
+144%
Industrials
13.9x
+167%
5Y Avg
20.7x
+80%
Price/FCF
67.0x
S&P 500
21.3x
+214%
Industrials
20.6x
+225%
5Y Avg
32.7x
+105%
Price/Sales
6.4x
S&P 500
3.1x
+104%
Industrials
1.6x
+302%
5Y Avg
3.1x
+105%
Dividend Yield
0.28%
S&P 500
1.88%
-85%
Industrials
1.24%
-78%
5Y Avg
0.60%
-54%
| Metric | WWD | S&P 500 | Industrials | 5Y Avg WWD |
|---|---|---|---|---|
| Forward PE | 42.8x | 19.1x+124% | 20.8x+105% | — |
| Trailing PE | 53.2x | 25.2x+111% | 25.9x+106% | 32.4x+64% |
| PEG Ratio | 3.81x | 1.75x+118% | 1.59x+140% | — |
| EV/EBITDA | 37.1x | 15.3x+144% | 13.9x+167% | 20.7x+80% |
| Price/FCF | 67.0x | 21.3x+214% | 20.6x+225% | 32.7x+105% |
| Price/Sales | 6.4x | 3.1x+104% | 1.6x+302% | 3.1x+105% |
| Dividend Yield | 0.28% | 1.88% | 1.24% | 0.60% |
WWD trades above S&P 500 benchmarks on 6 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolWWD Financial Health
Verdict
Strong
WWD generates $389M in free cash flow at a 9.7% margin — 13.3% ROIC signals a durable competitive advantage · returns 1.0% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$4.0B
Revenue Growth
TTM vs prior year
+19.0%
Gross Margin
Gross profit as a share of revenue
28.4%
Operating Margin
Operating income divided by revenue
15.0%
Net Margin
Net income divided by revenue
12.9%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$8.36
Free Cash Flow (TTM)
Cash generation after capex
$389M
FCF Margin
FCF as share of revenue — the primary cash quality signal
9.7%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
13.3%
ROA
Return on assets, trailing twelve months
10.8%
Cash & Equivalents
Liquid assets on the balance sheet
$327M
Net Debt
Total debt minus cash
$395M
Debt Serviceability
Net debt as a multiple of annual free cash flow
1.0× FCF
~1.0 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
20.3%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
1.0%
Dividend
0.3%
Buyback
0.8%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$173M
Dividend / Share
Annualized trailing dividend per share
$1.06
Payout Ratio
Share of earnings distributed as dividends
14.7%
Shares Outstanding
Declining as buybacks retire shares
60M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageWWD Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Customer Concentration
Woodward's revenue is heavily reliant on a few major customers, including RTX, Boeing, and Rolls-Royce. This concentration poses a significant risk if any of these clients reduce their orders or encounter business difficulties.
High Risk
Valuation Concerns
Woodward's stock has experienced a substantial price increase, leading analysts to suggest it may be trading at elevated valuation multiples. Some analyses indicate that the stock is currently above its fair value based on discounted cash flow models, limiting potential upside.
Medium
Geopolitical Tensions
Broader market concerns, including geopolitical tensions and signs of economic weakness, could negatively impact the industrial and aerospace sectors, which are critical markets for Woodward. Such external factors may lead to reduced demand for Woodward's products.
Medium
Regulatory Pressure
Woodward faces potential risks from changing regulations, particularly related to aviation emissions. These regulatory shifts could significantly affect the company's operations and profitability.
Lower
Reliance on Legacy Platforms
The company's dependence on legacy platforms in its product offerings may pose a risk if the market shifts towards newer technologies. This reliance could hinder Woodward's competitiveness in a rapidly evolving industry.
Lower
Capital Investment Risk
Woodward's business model requires heavy capital investment, which carries risks associated with executing strategies to maintain margins and cash flow. Any missteps in capital allocation could adversely affect financial performance.
Lower
Insider Selling
Recent insider stock sales have contributed to selling pressure on Woodward's stock. This activity may raise concerns among investors about the company's future prospects.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why WWD Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Strong Industrial Sales Growth
Woodward has demonstrated significant growth in industrial sales, with a 46% increase to $326 million. This growth is notably fueled by a 96% year-over-year rise in the transportation sector, influenced by the expanding Chinese natural gas truck market.
Improved Profitability
The company's EBIT margin has shown substantial improvement, increasing by 820 basis points to 15.1%. This improvement is attributed to contributions from both the aerospace and industrial segments, indicating enhanced operational efficiency.
Positive Segment Outlook
The industrial segment is expected to see revenue growth of 8-10% for fiscal year 2024, with upward revisions in operating margins, highlighting the company's resilience.
Exceptional Q1 2026 Performance
Woodward reported a standout first quarter in 2026, with sales growing by 29% and earnings per share (EPS) up by 61%, significantly surpassing consensus estimates. The company raised its full-year guidance, now expecting 14-18% sales growth and EPS between $8.20-$8.60.
Analyst Confidence
A significant majority of analysts recommend buying WWD stock. Out of 30 existing stock ratings, 23 are 'BUY' (76.67%) and 7 are 'HOLD' (23.33%). Nine Wall Street analysts rated WWD as Bullish, with only two rating it Neutral.
Financial Strength and Future Potential
Woodward's balance sheet strength and its transition to a net cash position by 2028 are expected to facilitate increased share repurchases and sustained growth.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
WWD Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$382.42
52W Range Position
89%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$193.06
+98.1% from the low
52-Week High
$407.00
-6.0% from the high
1 Month
+0.93%
3 Month
-1.57%
YTD
+23.0%
1 Year
+95.0%
3Y CAGR
+52.1%
5Y CAGR
+24.8%
10Y CAGR
+21.5%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
WWD vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
42.8x
vs 49.3x median
-13% below peer median
Revenue Growth
+8.7%
vs +12.6% median
-30% below peer median
Net Margin
12.9%
vs 13.8% median
-7% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
WWD WWD Woodward, Inc. | $22.8B | 42.8x | +8.7% | 12.9% | Buy | +13.3% |
CW CW Curtiss-Wright Corporation | $27.4B | 49.3x | +11.0% | 13.8% | Buy | -4.6% |
DRS DRS Leonardo DRS, Inc. | $11.1B | 33.3x | +9.7% | 7.8% | Buy | +26.8% |
KTO KTOS Kratos Defense & Security Solutions, Inc. | $11.5B | 79.3x | +19.2% | 2.1% | Buy | +79.7% |
TDG TDG TransDigm Group Incorporated | $69.7B | 31.8x | +12.6% | 21.6% | Buy | +31.1% |
HEI HEI HEICO Corporation | $25.0B | 52.8x | +14.4% | 15.4% | Buy | +25.2% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
WWD Dividend and Capital Return
WWD returns capital mainly through $173M/year in buybacks (0.8% buyback yield), with a modest 0.28% dividend — combining for 1.0% total shareholder yield. The dividend has grown for 5 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
1.0%
Dividend + buyback return per year
Buyback Yield
0.8%
Dividend Yield
0.28%
Payout Ratio
14.7%
How WWD Splits Its Return
Div 0.28%
Buyback 0.8%
Dividend 0.28%Buybacks 0.8%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.06
Growth Streak
Consecutive years of dividend increases
5Y
3Y Div CAGR
13.8%
5Y Div CAGR
16.4%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$173M
Estimated Shares Retired
452.0K
Approx. Share Reduction
0.8%
Shares Outstanding
Current diluted share count from the screening snapshot
60M
At 0.8%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.64 | — | — | — |
| 2025 | $1.12 | +12.0% | 1.1% | 1.5% |
| 2024 | $1.00 | +13.6% | 3.7% | 4.2% |
| 2023 | $0.88 | +15.8% | 1.7% | 2.3% |
| 2022 | $0.76 | +16.9% | 9.6% | 10.4% |
FAQ
7 questionsWWD Investor Questions
Common questions answered from live analyst data and company financials.
01Is Woodward, Inc. (WWD) stock a buy or sell in 2026?
Woodward, Inc. (WWD) is rated Buy by Wall Street analysts as of 2026. Of 20 analysts covering the stock, 11 rate it Buy or Strong Buy, 8 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $433, implying +13.3% from the current price of $382. The bear case scenario is $264 and the bull case is $622.
02What is the WWD stock price target for 2026?
The Wall Street consensus price target for WWD is $433 based on 20 analyst estimates. The high-end target is $470 (+22.9% from today), and the low-end target is $404 (+5.6%). The base case model target is $564.
03Is Woodward, Inc. (WWD) stock overvalued in 2026?
WWD trades at 42.8x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals significantly overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Woodward, Inc. (WWD) stock in 2026?
The primary risks for WWD in 2026 are: (1) Customer Concentration — Woodward's revenue is heavily reliant on a few major customers, including RTX, Boeing, and Rolls-Royce. (2) Valuation Concerns — Woodward's stock has experienced a substantial price increase, leading analysts to suggest it may be trading at elevated valuation multiples. (3) Geopolitical Tensions — Broader market concerns, including geopolitical tensions and signs of economic weakness, could negatively impact the industrial and aerospace sectors, which are critical markets for Woodward. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Woodward, Inc.'s revenue and earnings forecast?
Analyst consensus estimates WWD will report consensus revenue of $4.3B (+8.7% year-over-year) and EPS of $9.48 (+13.3% year-over-year) for the upcoming fiscal year. The following year, analysts project $4.8B in revenue.
06When does Woodward, Inc. (WWD) report its next earnings?
A confirmed upcoming earnings date for WWD is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Woodward, Inc. generate?
Woodward, Inc. (WWD) generated $389M in free cash flow over the trailing twelve months — a free cash flow margin of 9.7%. WWD returns capital to shareholders through dividends (0.3% yield) and share repurchases ($173M TTM).