| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 22 | 37.2x | 17.8x | Bottom tier | |
Growth | 84 | 22.3% | 7.1% | Top tier | |
Quality | 67 | 17.6% | 4.5% | Top tier | |
Safety | 80 | — | 2.6x | Top tier | |
Capital Return | 49 | 0.36% | 2.12% | Around median | |
Momentum | 48 | 49.4% | 2.9% | Around median | |
Sentiment | 76 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Woodward operates in two primary markets: Aerospace and Industrial, generating revenue from supplying original components and systems and from aftermarket services. Its Aerospace business includes aircraft manufacturer equipment and services for engines and commercial and defense platforms, with exposure to programs such as LEAP, GTF, CFM56, V2500, GEnx, GE90, and T700. The Industrial business serves power generation, including data center power, marine transportation, and oil and gas, with products including high-speed fuel injection systems used by Rolls-Royce mtu Solutions.
In the third quarter of fiscal 2026, net sales reached $1.1 billion, up 21% year over year, net income was $146.7 million, and diluted earnings per share were $2.40, while adjusted earnings per share reached $2.52, up 43%. Gross profit according to EDGAR data was approximately $349.9 million, and the reported gross margin was 31.5%, supported by higher volumes and improved pricing. Free cash flow was $87 million in the quarter, bringing the total for the first nine months of fiscal 2026 to $196 million, up 23%.
The Aerospace segment accounted for approximately 64% of segment sales in the third quarter of fiscal 2026, recording $709 million, growth of 19%, and an operating margin of 24%, compared with 21.1% a year earlier. The Industrial segment recorded $401 million, growth of 26%, and a margin of 22.1%, compared with 14.9%, while the core Industrial margin excluding the China on-highway business was 21.2%. Within Aerospace, commercial OEM sales rose 34% and commercial aftermarket sales increased 24%, while in Industrial, marine transportation sales increased approximately 24%, power generation 19%, and oil and gas 11%.
The average analyst price target is $440, within a target range of $420 to $470, compared with a 52-week share-price range of $233.31 to $450.92, and the consensus recommendation is Buy. The average target is only approximately 2.4% below the top of the 52-week range, while the highest target exceeds that peak by approximately 4.2%, meaning the consensus assumes results will remain near the strong levels recorded in fiscal 2026. Conversely, the nonrecurring pricing settlement, the potential deterioration in the Industrial mix, and working capital and supply chain pressures make the lower target of $420 an important reference point for the more conservative scenario.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Net sales reached $1.1 billion, up 21%, and adjusted earnings per share rose 43% to $2.52. Aerospace recorded growth of 19% to $709 million, while the Industrial segment grew 26% to $401 million. The improvement came from higher production, pricing, and improved fixed-cost absorption, with the gross margin reaching 31.5%.
The company raised its adjusted earnings per share outlook to a range of $9.30 to $9.50. It expects Aerospace sales growth of between 21% and 23% with a margin of approximately 23.5%, and Industrial sales growth of between 19% and 21% with a margin of approximately 19%. Management kept the remaining elements of its fiscal 2026 outlook unchanged and set an adjusted effective tax rate of approximately 22.5%.
Increased LEAP and GTF activity supported 24% growth in commercial aerospace aftermarket sales in the third quarter of fiscal 2026. Management said maintenance inputs across the portfolio were stable to increasing, and that repair and spare-unit revenue associated with the LEAP and GTF programs had already exceeded their legacy counterparts when repairs and spare units were combined. The HAECO partnership also expands the service network for Woodward units on the CFM LEAP engine in Greater China and the Asia-Pacific region.
Automated analysis for informational purposes only — not investment advice.
Power generation sales rose 19% in the third quarter of fiscal 2026, supported by data center demand for primary and backup power. The company completed an expansion of its high-speed fuel injection production line in Glatten, Germany, which supports demand from Rolls-Royce mtu Solutions in power generation applications. Management explained that customers raising their forecasts for 2027 and 2028 and beyond may require additional expansions, but it is still evaluating the risks before allocating capital.
The Aerospace margin expanded to 24% from 21.1%, and the Industrial margin rose to 22.1% from 14.9%. However, a one-time retroactive pricing settlement added approximately 100 basis points to the Aerospace margin, while the China on-highway business added nearly 90 basis points to the Industrial margin. Management expects price growth to moderate to a range of between 3% and 5% and the core Industrial margin in the fourth quarter of fiscal 2026 to return to levels closer to the first half.
Risks include bottlenecks in castings, forgings, and rare earth metals, with issues continuing to emerge among between five and ten suppliers. The company also increased inventory to support demand, some collections were delayed, and capital expenditures are expected to rise to approximately $290 million in fiscal 2026. Additional risks include the near-complete end of sales from the China on-highway business during the fourth quarter and the potential decline in the positive impact of pricing and mix compared with the third quarter.
