A Look at Woodward’s (WWD) Valuation After Strong Results, Bullish Guidance, and New $1.8B Buyback

Woodward (WWD) captured attention this week by reporting strong fourth quarter and full year earnings with double-digit year-over-year growth in both sales and profit. Management also unveiled optimistic guidance for 2026 and announced a new $1.8 billion share buyback program.

See our latest analysis for Woodward.

The upbeat results and new $1.8 billion buyback sparked a wave of momentum in Woodward’s stock, sending its share price up 14% over the past week and building on a remarkable year-to-date gain of over 75%. This puts its 1-year total shareholder return at 67%, and the long-term picture is even brighter, with a 214% three-year total return. These are clear signs that investor confidence is growing thanks to consistent execution, strong guidance, and ongoing capital returns.

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After a stellar run and a wave of optimism, the key question now is whether Woodward’s future growth is already reflected in the stock price, or if there may still be real upside for new investors to capture.

Most Popular Narrative: 40% Overvalued

Woodward’s most popular narrative suggests its fair value still trails the current price, as optimism about future growth appears to be priced in. The fair value of $298.75 is substantially lower than the recent close of $300.03, indicating that investors are already factoring in a positive outlook for profit expansion and margin growth.

Strategic capital allocation toward next-generation manufacturing capabilities, vertical integration, and automation is set to improve operational efficiency and cost structure. Combined with pricing power from value-added innovation, this is likely to drive net margin expansion in the medium to long term.

Read the complete narrative.

Want to know which growth levers and financial targets justify this bold price tag? The full narrative highlights the acceleration of margins, ambitious revenue gains, and a profit multiple that sets a high bar. Explore the specific metrics analysts are focusing on to drive Woodward’s future valuation.

Result: Fair Value of $298.75 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, execution risks such as high capital spending and shifting aerospace demand could quickly challenge the current growth story if trends turn less favorable.

Find out about the key risks to this Woodward narrative.

Build Your Own Woodward Narrative

If you see the story differently or want to dig into the numbers on your own terms, it takes just minutes to build your personal thesis and Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Woodward.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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