What Happened?
Shares of aerospace and defense company Woodward (NASDAQ: WWD) jumped 16.5% in the morning session after it reported fourth-quarter 2025 results that significantly surpassed expectations.
The company posted GAAP earnings of $2.17 per share, a 52.8% increase from the prior year and a 29.4% beat on analyst estimates. Revenue also saw a robust increase, climbing 29% year-over-year to $996.5 million, which was nearly 12% ahead of consensus. The strong performance was further highlighted by a significant expansion in operating margin to 17.9%, up from 11.6% in the same quarter last year. Bolstering investor confidence, Woodward also issued full-year earnings guidance with a midpoint of $8.40 per share, topping Wall Street's forecast.
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What Is The Market Telling Us
Woodward’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for Woodward and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was about 1 month ago when the stock gained 3% on the news that Deutsche Bank raised its price target on the stock to $400 from $360 while maintaining a 'Buy' rating.
The analyst's move came amid what appeared to be strong underlying momentum in the company's business. Woodward's aerospace segment benefited from strength in commercial services and defense. Meanwhile, its industrial business gained from solid demand for power generation, which included the continued need for backup power for data centers. The positive sentiment was also supported by a previously authorized share buyback program for up to $1.8 billion in outstanding shares.
Woodward is up 21.8% since the beginning of the year, and at $378.65 per share, has set a new 52-week high. Investors who bought $1,000 worth of Woodward’s shares 5 years ago would now be looking at an investment worth $3,283.
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