Shares of aerospace and industrial systems supplier Woodward are experiencing a significant rally, driven by a wave of revised forecasts from major financial institutions. This surge follows the company’s robust quarterly earnings and an upgraded full-year outlook, prompting analysts to reassess their price targets.
Record Financials Underpin Bullish Sentiment
The fundamental catalyst for the current momentum is Woodward’s impressive fourth-quarter 2025 financial performance. The company reported revenue of $995 million, marking a 16.5% year-over-year increase and significantly surpassing market expectations.
Key financial highlights include:
* Earnings per share (EPS) of $2.09, beating the consensus estimate of $1.83.
* A forward-looking EPS guidance range of $7.50 to $8.00 for fiscal year 2026.
* A consolidated order backlog exceeding $3.0 billion.
* A return on equity (ROE) of 17.68% for the last fiscal year.
The aerospace segment, representing approximately 60% of total revenue, continues to be the primary growth engine. This strength is supported by rising production rates for narrow-body aircraft and increased demand from defense programs.
Wall Street Responds with Target Hikes
In a direct response to these results, Truist Securities raised its price target on Woodward stock to $366 from $305, reiterating its “Buy” rating. This move is part of a broader trend of aggressive target increases across Wall Street.
Should investors sell immediately? Or is it worth buying Woodward?
Deutsche Bank maintains one of the most bullish stances with a $400 price objective. Meanwhile, UBS has highlighted Woodward as a top pick for 2026. Market experts point to the company’s deep involvement in key engine programs, specifically the LEAP and GTF, which are expected to drive long-term aftermarket service revenue.
The overall analyst consensus remains strongly favorable. Current ratings show nine firms recommending a “Buy,” with only four advising investors to “Hold.” This positive assessment is grounded in the company’s concrete financial achievements and strategic contract wins.
Strategic Moves Position Company for Future Growth
Beyond organic growth, Woodward is actively shaping its future through strategic capital allocation. The company recently finalized the acquisition of Safran’s North American electromechanical actuators business. Furthermore, its board of directors authorized a new $1.8 billion share repurchase program, equivalent to roughly 11.6% of its outstanding shares.
The firm’s market position received a notable boost by being selected to supply 12 of the 14 spoiler actuator systems for the Airbus A350. This contract marks Woodward’s first primary flight control system for a major commercial airliner.
Trading near all-time highs, Woodward’s equity has delivered a total return exceeding 76% over the past year. The upward trend finds additional support in a projected free cash flow of $300 to $350 million for the current fiscal year, which will fund dividend payments and production expansion initiatives.
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