WWD Nasdaq Russell 1000 Earnings call
Woodward, Inc. (WWD) · Q2 2026 results and valuation
Share price: $338.55 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 29 Jul 2026 and 29 Apr 2026
Net income up 9.4% on the previous quarter, guidance raised. Management sounded very upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+9.4%
Net income vs Q1 2026
Guidance raised
Net income 146.7M vs 134.0M
Revenue +1.8%
2 · How management spoke
Very upbeat
More upbeat than 93% of company calls
Answers to analysts: typical, but clearly less so than the script.
Similar to last call.
3 · What stood out
Key theme
Aerospace margins widened to 24% from 21.1% and Defense Services sales rose 20%, lifted by T700 spares and better castings supply.
Valuation
Is Woodward, Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-09-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 14.4% growth a year (3-year revenue growth), the model's fair value is $173.84 a share — the stock trades 95% above it. Today's price assumes 23.0% growth a year.
Current price
$338.55
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+23.0% for 10 yrs
Fair value / share
$173.84
Buy below
$130.38
Price vs fair value
Overvalued 95%
Price vs buy-below price
Overvalued 160%
Read between the lines
-
Guidance ↑
WWD is raising its 2026 earnings guidance based on a strong third quarter and confidence in fourth-quarter execution.
Source quote
“Based on a strong third quarter and confidence that we will continue to execute well in the fourth quarter, we are raising our earnings guidance for 2026.”
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Guidance ↑
Adjusted EPS guidance raised to between $9.30 and $9.50.
Source quote
“Based on these updates, we are raising our adjusted EPS guidance to between $9.30 and $9.50.”
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Figure
Woodward sales grew 21% year-over-year and adjusted EPS increased 43% during the quarter.
Source quote
“In the quarter, Woodward sales grew 21% year-over-year and adjusted EPS increased 43%.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 96% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“In this high-growth environment, it is helpful that supply chain visibility and predictability continue to improve.”
“Industrial sales growth increasing to between 19% and 21%, with margins increasing to approximately 19%, and adjusted effective tax rate of approximately 22.5%.”
“Net sales were $1.1 billion, an increase of 21%, reflecting strong demand and increased output in both Aerospace and Industrial.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.11B | 1.09B | +1.8% | 915.4M | +21.2% |
| Gross profit | 349.9M | 315.9M | +10.8% | 249.2M | +40.4% |
| Operating income | 193.5M | 167.4M | +15.6% | 126.8M | +52.6% |
| Net income | 146.7M | 134.0M | +9.4% | 108.4M | +35.2% |
| EPS | 2.40 | 2.19 | +9.6% | 1.76 | +36.4% |
| P/E today 37.0 | 47.3 | 42.9 | +4.4 | 38.8 | +8.5 |
Topics
Most discussed now
- New Industrial sales were up 26% in the quarter, and the team did an excellent job leveraging fixed costs as volume...
- New Woodward fors anything that has to do with machining, it has rapid response centers set up at 3 different sites.
- Aerospace sales were up 19% with commercial OEM keeping pace with airframer build rates, sustained commercial services growth and…
- This continued momentum is the result of focused and disciplined execution by its global team as Woodward delivers on strong...
- Woodward delivered significant margin expansion, primarily driven by pricing actions.
Faded since Q1 2026
- Dropped While the safety of its team is its first priority, Woodward is also closely monitoring broader geopolitical developments and how those...
- Dropped If the duration and the price of fuel continues to climb, then load factor breakeven points between city payers is...
- Fading Woodward's team continues to execute with focus and discipline to meet ongoing robust demand across both its Aerospace and Industrial...
- Fading Spare LRU sales growth was strong in the quarter, with volume consistent with the previous 2 quarters.
Latest announcements
Official filings, newest first.
- Restructuring costs; Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K
- Other events · SEC 8-K
- Director or officer change · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K