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Woodward to Report Q2 Earnings: Here's What Investors Should Know
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Key Takeaways
WWD set to report Q2 FY26 on April 29, with revenues seen up 12.4% and EPS up 18.3%.
Woodward's Aerospace growth driven by OEM, defense demand and strong commercial services activity.
WWD Industrial gains from power demand and data centers, but China exit and macro risks weigh.
Woodward, Inc (WWD - Free Report) is scheduled to report second-quarter fiscal 2026 results on April 29.
The Zacks Consensus Estimate for revenues is pegged at $992.8 million, which implies an increase of 12.4% from the year-ago reported number. The consensus mark for earnings is pegged at $2.00 per share, indicating a year-over-year increase of 18.3%.
WWD’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 17.93%.
Image Source: Zacks Investment Research
Woodward’s shares have gained 101.1% compared with the Aerospace Defense Equipment industry’s growth of 28.2% in the past year.
Factors to Note Ahead of WWD’s Q2 Results
WWD’s performance in the fiscal second quarter is likely to have been powered by momentum in the Aerospace segment and core industrial end markets.
Strength in the commercial OEM and services, as well as higher defense activity, are likely to have supported Aerospace momentum, despite supply-chain challenges. In the last reported quarter, commercial OEM and defense OEM sales were up 22% and 23%, respectively. OEM sales supported by pricing tailwinds like JDAM.
WWD has been witnessing strong growth across its defense portfolio, including a considerably higher smart defense order activity. Geopolitical developments have been driving higher demand in the defense vertical.
Continued high legacy aircraft utilization, along with growth expected in repair activity and spare parts, is likely to have supported revenues from Commercial services. However, on the last earnings call, management noted that commercial services revenues would normalize owing to tougher comps, as the elevated spare LRU sales in the previous quarter cannot repeat.
Woodward’s Industrial business segment has been gaining from solid demand for power generation and the continued requirement for primary and backup power for data centers. Higher investment in gas-powered generation to support grid stability is another tailwind. Increasing demand for alternative fuels across the marine industry, as well as momentum in the global marine market brought on by capacity and higher utilization, bodes well.
A notable change in the Industrial segment is the planned wind-down of the China on-highway business, though it contributed to the fiscal first quarter earnings. The China on-highway business has delivered inconsistent performance, marked by limited order visibility and pronounced quarter-to-quarter volatility.
Due to its unpredictable operating environment and uneven contribution to revenues and profitability, management has elected to wind down the business by the end of the current fiscal year. This decision is expected to entail $20-$25 million in restructuring and exit-related costs, largely stemming from employee-related expenses, contract cancellations and inventory write-downs.
Favorable mix and strong pricing are holding up margin performance. Global macroeconomic uncertainty, along with ongoing investments in capacity expansion and rising costs, is a concern. Also, a slowdown in production in the oil and gas sector and supply-chain challenges in the Aerospace segment remain concerns.
We expect revenues from the Aerospace segment to increase 16.3% to $653 million and from the Industrial segment to increase 6.1% to $341.4 million for the fiscal second quarter.
Recent Key Developments
On April 23, 2026, Woodward and Air France-KLM Engineering & Maintenance have signed an Elite Licensed Repair Service Facility (“LRSF”) agreement for CFM LEAP-1A and LEAP-1B engine components.
On April 21, 2026, Woodward signed an LRSF agreement with Lufthansa Technik to support its components on CFM LEAP engines. Lufthansa Technik becomes the first network partner authorized to provide full repair and overhaul services, enhancing support for Airbus A320neo and Boeing 737 MAX operators.
On April 15, 2026, Woodward announced an agreement to sell its pilot controls product line and related services to Ontic Engineering and Manufacturing, subject to customary closing conditions and regulatory approvals.
On March 9, 2026, Woodward announced an agreement to acquire Jet Research Development, Inc., which operates as Valve Research & Manufacturing Company. The company specializes in the manufacturing of high-precision flow control valves for aerospace applications and is a strategic fit for WWD’s aerospace controls portfolio.
What Our Model Says for WWD
Our proven model does not conclusively predict an earnings beat for WWD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
WWD has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.
Sandisk is scheduled to report quarterly earnings on April 30. The Zacks Consensus Estimate for SNDK’s to-be-reported quarter’s earnings and revenues is pegged at $13.92 per share and $4.55 billion, respectively. Shares of SNDK have skyrocketed 2,967.5% in the past year.
Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #2 at present. MPWR is scheduled to report quarterly figures on April 30.
The Zacks Consensus Estimate for MPWR’s to-be-reported quarter’s earnings and revenues is pegged at $4.89 per share and $781.1 million, respectively. Shares of MPWR are up 178.9% in the past year.
Sirius XM (SIRI - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank #2 at present. SIRI is scheduled to report quarterly figures on April 30. The Zacks Consensus Estimate for SIRI’s to-be-reported quarter’s earnings and revenues is pegged at 70 cents per share and $2.07 billion, respectively. Shares of SIRI are up 22.2% in the past year.
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Woodward to Report Q2 Earnings: Here's What Investors Should Know
Key Takeaways
Woodward, Inc (WWD - Free Report) is scheduled to report second-quarter fiscal 2026 results on April 29.
The Zacks Consensus Estimate for revenues is pegged at $992.8 million, which implies an increase of 12.4% from the year-ago reported number. The consensus mark for earnings is pegged at $2.00 per share, indicating a year-over-year increase of 18.3%.
WWD’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 17.93%.
Image Source: Zacks Investment Research
Woodward’s shares have gained 101.1% compared with the Aerospace Defense Equipment industry’s growth of 28.2% in the past year.
Factors to Note Ahead of WWD’s Q2 Results
WWD’s performance in the fiscal second quarter is likely to have been powered by momentum in the Aerospace segment and core industrial end markets.
Strength in the commercial OEM and services, as well as higher defense activity, are likely to have supported Aerospace momentum, despite supply-chain challenges. In the last reported quarter, commercial OEM and defense OEM sales were up 22% and 23%, respectively. OEM sales supported by pricing tailwinds like JDAM.
WWD has been witnessing strong growth across its defense portfolio, including a considerably higher smart defense order activity. Geopolitical developments have been driving higher demand in the defense vertical.
Continued high legacy aircraft utilization, along with growth expected in repair activity and spare parts, is likely to have supported revenues from Commercial services. However, on the last earnings call, management noted that commercial services revenues would normalize owing to tougher comps, as the elevated spare LRU sales in the previous quarter cannot repeat.
Woodward, Inc. Price and EPS Surprise
Woodward, Inc. price-eps-surprise | Woodward, Inc. Quote
Woodward’s Industrial business segment has been gaining from solid demand for power generation and the continued requirement for primary and backup power for data centers. Higher investment in gas-powered generation to support grid stability is another tailwind. Increasing demand for alternative fuels across the marine industry, as well as momentum in the global marine market brought on by capacity and higher utilization, bodes well.
A notable change in the Industrial segment is the planned wind-down of the China on-highway business, though it contributed to the fiscal first quarter earnings. The China on-highway business has delivered inconsistent performance, marked by limited order visibility and pronounced quarter-to-quarter volatility.
Due to its unpredictable operating environment and uneven contribution to revenues and profitability, management has elected to wind down the business by the end of the current fiscal year. This decision is expected to entail $20-$25 million in restructuring and exit-related costs, largely stemming from employee-related expenses, contract cancellations and inventory write-downs.
Favorable mix and strong pricing are holding up margin performance. Global macroeconomic uncertainty, along with ongoing investments in capacity expansion and rising costs, is a concern. Also, a slowdown in production in the oil and gas sector and supply-chain challenges in the Aerospace segment remain concerns.
We expect revenues from the Aerospace segment to increase 16.3% to $653 million and from the Industrial segment to increase 6.1% to $341.4 million for the fiscal second quarter.
Recent Key Developments
On April 23, 2026, Woodward and Air France-KLM Engineering & Maintenance have signed an Elite Licensed Repair Service Facility (“LRSF”) agreement for CFM LEAP-1A and LEAP-1B engine components.
On April 21, 2026, Woodward signed an LRSF agreement with Lufthansa Technik to support its components on CFM LEAP engines. Lufthansa Technik becomes the first network partner authorized to provide full repair and overhaul services, enhancing support for Airbus A320neo and Boeing 737 MAX operators.
On April 15, 2026, Woodward announced an agreement to sell its pilot controls product line and related services to Ontic Engineering and Manufacturing, subject to customary closing conditions and regulatory approvals.
On March 9, 2026, Woodward announced an agreement to acquire Jet Research Development, Inc., which operates as Valve Research & Manufacturing Company. The company specializes in the manufacturing of high-precision flow control valves for aerospace applications and is a strategic fit for WWD’s aerospace controls portfolio.
What Our Model Says for WWD
Our proven model does not conclusively predict an earnings beat for WWD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
WWD has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.
Sandisk Corporation (SNDK - Free Report) currently has an Earnings ESP of +4.96% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sandisk is scheduled to report quarterly earnings on April 30. The Zacks Consensus Estimate for SNDK’s to-be-reported quarter’s earnings and revenues is pegged at $13.92 per share and $4.55 billion, respectively. Shares of SNDK have skyrocketed 2,967.5% in the past year.
Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #2 at present. MPWR is scheduled to report quarterly figures on April 30.
The Zacks Consensus Estimate for MPWR’s to-be-reported quarter’s earnings and revenues is pegged at $4.89 per share and $781.1 million, respectively. Shares of MPWR are up 178.9% in the past year.
Sirius XM (SIRI - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank #2 at present. SIRI is scheduled to report quarterly figures on April 30. The Zacks Consensus Estimate for SIRI’s to-be-reported quarter’s earnings and revenues is pegged at 70 cents per share and $2.07 billion, respectively. Shares of SIRI are up 22.2% in the past year.