The strong beat and raised guidance confirm robust demand across aerospace and industrial end markets. Monitor the Q4 earnings call for commentary on supply chain, capex plans, and whether the Industrial margin expansion is sustainable. The stock may re-rate higher given the consistent execution and upward revision cycle.
Price Chart
Executive Summary
Woodward reported strong Q3 FY2026 results with EPS of $2.40 (GAAP) and $2.52 (adjusted), revenue of $1.11B (+21% YoY), and raised full-year adjusted EPS guidance to $9.30-$9.50. Both Aerospace and Industrial segments delivered significant sales growth and margin expansion, with Industrial segment earnings surging 86% YoY. The beat vs consensus and raised guidance are clear positives, though free cash flow declined 12% in the quarter due to higher capex.
Key Financial Metrics
Key Facts
- Q3 FY2026 GAAP EPS $2.40 vs consensus $2.39 (slight beat)
- Revenue $1.11B (+21% YoY) vs consensus $1.11B (in-line)
- Adjusted EPS $2.52 (+43% YoY), raised FY26 adjusted EPS guidance to $9.30-$9.50 from $9.15-$9.45
- Aerospace segment sales +19% YoY to $709M, margin expanded 290bps to 24.0%
- Industrial segment sales +26% YoY to $401M, earnings +86% YoY, margin expanded 720bps to 22.1%
- Operating cash flow $147M (+17% YoY); Free cash flow $87M (-12% YoY) due to higher capex
- Share repurchases of $198M in Q3, $553M YTD
- Total debt $1.34B, EBITDA leverage 1.6x (up from 1.5x a year ago)
Financial Impact
EPS beat of ~$0.01 vs consensus, but adjusted EPS of $2.52 significantly above prior-year $1.76. Raised FY26 adjusted EPS guidance by $0.15-$0.05 to $9.30-$9.50.
Risk Factors
- Free cash flow declined 12% YoY in Q3 due to elevated capex ($60M vs $27M), which may pressure future returns
- EBITDA leverage increased to 1.6x from 1.5x, indicating higher debt levels
- Restructuring charges of $9.3M in Q3 and $16.1M YTD could signal ongoing cost pressures
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001171843-26-005009 |
| Document: f8k_072926.htm | 0001171843-26-005009 |
| Document: 0001171843-26-005009-index-headers.html | 0001171843-26-005009 |
| Document: 0001171843-26-005009-index.html | 0001171843-26-005009 |
| Document: 0001171843-26-005009.txt | 0001171843-26-005009 |
| 8-K Data (Synthetic) | 0001171843-26-005009 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 21, 2026 6w ago | 8-K | $343.26 $321.74 | ▼ −6.27% | ▼ −5.99% | $331.62 (−3.39%) |
Jul 29, 2026 9w ago | 8-K | $356.28 $346.34 | ▼ −2.79% | ▼ −6.76% | $331.62 (−6.92%) |
Jun 25, 2026 14w ago | 8-K | $431.62 $411.94 | ▼ −4.56% | ▼ −5.82% | $331.62 (−23.17%) |
Jun 11, 2026 16w ago | Institutional Cluster | $388.21 $403.48 | ▲ +3.93% | ▲ +2.04% | $331.62 (−14.58%) |
Jun 5, 2026 17w ago | 8-K | $359.79 $423.48 | ▲ +17.70% | ▲ +16.07% | $331.62 (−7.83%) |
May 28, 2026 18w ago | 8-K | $348.20 $431.62 | ▲ +23.96% | ▲ +27.59% | $331.62 (−4.76%) |
Apr 27, 2026 22w ago | 8-K | $366.47 $361.25 | ▼ −1.43% | ▼ −6.38% | $331.62 (−9.51%) |
Apr 24, 2026 23w ago | 8-K | $363.16 $355.76 | ▼ −2.04% | ▼ −6.06% | $331.62 (−8.69%) |
Apr 22, 2026 23w ago | Press Release | $366.41 $344.85 | ▼ −5.89% | ▼ −9.05% | $331.62 (−9.50%) |
Apr 15, 2026 24w ago | Press Release | $372.98 $369.78 | ▼ −0.86% | ▼ −6.67% | $331.62 (−11.09%) |
US Market Status
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