Goldman Sachs has set a new price target of $408 for Woodward, Inc., implying nearly a 10% upside from recent levels. This revision reflects the firm’s confidence in Woodward’s ability to capitalize on robust demand trends across its Aerospace and Industrial segments, as well as its expanding services mix that supports higher-margin revenue streams.

In the first quarter of fiscal 2026, Woodward reported earnings per share of $2.17, representing a 60.7% year-over-year increase and beating the Zacks Consensus Estimate by 31.5%. Net sales climbed 29% to $996 million, driven by broad-based strength in both Aerospace and Industrial end markets. These results underscore the company’s operational leverage and effective cost management amid rising volumes.

Woodward’s Aerospace business delivered particularly strong performance, benefiting from a richer services mix and increased order flow from defense original equipment manufacturers. This segment’s margin expansion, combined with robust aftermarket activity across commercial and military platforms, prompted the company to raise its full-year sales growth guidance to a range of 14%–18% and to lift its EPS outlook to between $8.20 and $8.60.

Following the earnings release, Woodward’s shares jumped by double digits in after-hours trading, reflecting investor enthusiasm for the raised guidance and a 14% increase to the quarterly dividend. Updated analyst models now imply potential upside of 14% to $371.87 for 2027 and 28% to $419.09 for 2028, underpinned by expectations of sustained double-digit sales and EBITDA growth.