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Stockholders' Equity | 6 Months Ended
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Mar. 31, 2026
Equity [Abstract] |
Stockholders' Equity | Note 21. Stockholders’ equity Common stock and treasury stock Activity in common stock and treasury stock shares was as follows:
|  | Common Stock |  |  | Treasury Stock |  |  | Treasury stock held for deferred compensation |
Balances as of January 1, 2025 |  |  | 72,960 |  |  |  | (13,607 | ) |  |  | (31 | )
Purchase of treasury stock |  |  | — |  |  |  | (243 | ) |  |  | — |
Sales of treasury stock |  |  | — |  |  |  | 344 |  |  |  | — |
Common shares issued for benefit plans |  |  | — |  |  |  | 126 |  |  |  | — |
Distribution of stock from deferred compensation |  |  | — |  |  |  | — |  |  |  | 1 |
Balances as of March 31, 2025 |  |  | 72,960 |  |  |  | (13,380 | ) |  |  | (30 | )
Balances as of January 1, 2026 |  |  | 72,960 |  |  |  | (13,174 | ) |  |  | (28 | )
Purchase of treasury stock |  |  | — |  |  |  | (631 | ) |  |  | — |
Sales of treasury stock |  |  | — |  |  |  | 360 |  |  |  | — |
Common shares issued for benefit plans |  |  | — |  |  |  | 78 |  |  |  | — |
Distribution of stock from deferred compensation |  |  | — |  |  |  | — |  |  |  | 1 |
Balances as of March 31, 2026 |  |  | 72,960 |  |  |  | (13,367 | ) |  |  | (27 | )
|  | Common Stock |  |  | Treasury Stock |  |  | Treasury stock held for deferred compensation |
Balances as of September 30, 2024 |  |  | 72,960 |  |  |  | (13,787 | ) |  |  | (45 | )
Purchase of treasury stock |  |  | — |  |  |  | (449 | ) |  |  | — |
Sales of treasury stock |  |  | — |  |  |  | 725 |  |  |  | — |
Common shares issued for benefit plans |  |  | — |  |  |  | 131 |  |  |  | — |
Purchases of stock by deferred compensation |  |  | — |  |  |  | — |  |  |  | (1 | )
Distribution of stock from deferred compensation |  |  | — |  |  |  | — |  |  |  | 16 |
Balances as of March 31, 2025 |  |  | 72,960 |  |  |  | (13,380 | ) |  |  | (30 | )
Balances as of September 30, 2025 |  |  | 72,960 |  |  |  | (13,060 | ) |  |  | (28 | )
Purchase of treasury stock |  |  | — |  |  |  | (1,086 | ) |  |  | — |
Sales of treasury stock |  |  | — |  |  |  | 701 |  |  |  | — |
Common shares issued for benefit plans |  |  | — |  |  |  | 78 |  |  |  | — |
Purchases of stock by deferred compensation |  |  | — |  |  |  | — |  |  |  | (1 | )
Distribution of stock from deferred compensation |  |  | — |  |  |  | — |  |  |  | 2 |
Balances as of March 31, 2026 |  |  | 72,960 |  |  |  | (13,367 | ) |  |  | (27 | )
Stock repurchase program In January 2024, the Board of Directors of the Company (the "Board") authorized a program for the repurchase of up to $600,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three-year period ending in January 2027 (the “2024 Authorization”). During the six months ended March 31, 2026, Woodward repurchased 153 shares of its common stock for $39,145 under the 2024 Authorization, all held for reissuance. During the six months ended March 31, 2025, Woodward repurchased 449 shares of its common stock for $79,493 under the 2024 Authorization, all held for reissuance. In November 2025, Woodward completed the 2024 Authorization, and subsequently the Board authorized a new program for the repurchase of up to $1,800,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three-year period ending in November 2028 (the "2026 Authorization"). During the six months ended March 31, 2026, Woodward repurchased 933 shares of its common stock for $315,745 under the 2026 Authorization, all held for reissuance. Stock-based compensation Provisions governing non-qualified stock option awards ("stock options" or "options"), restricted stock units ("RSUs"), and performance restricted stock units ("PSUs") are included in the 2017 Omnibus Incentive Plan, as amended from time to time (the “2017 Plan”). The 2017 Plan was first approved by Woodward’s stockholders in January 2017. The Board delegated authority to administer the 2017 Plan to the Human Capital & Compensation Committee of the Board, including, but not limited to, the power to determine the recipients of awards and the terms of those awards. Stock options Stock option awards are granted with an exercise price equal to the market price of Woodward’s stock at the date the grants are awarded, a ten-year term, and generally have a four-year vesting schedule at a rate of 25% per year. The fair value of options granted is estimated as of the grant date using the Black-Scholes-Merton option-valuation model. Woodward calculates the expected term, which represents the average period of time that stock options granted are expected to be outstanding, based upon historical experience of plan participants. Expected volatility is based on historical volatility using daily stock price observations. The estimated dividend yield is based upon Woodward’s historical dividend practice and the market value of its common stock. The risk-free rate is based on the U.S. treasury yield curve, for periods within the contractual life of the stock option, at the time of grant. The following is a summary of the activity for stock option awards:
|  | Three Months Ended March 31, 2026 |  |  | Six Months Ended March 31, 2026 |
|  | Number of options |  |  | Weighted-Average Exercise Price per Share |  |  | Number of options |  |  | Weighted-Average Exercise Price per Share |
Beginning balance |  |  | 1,942 |  |  | $ | 92.48 |  |  |  | 2,249 |  |  | $ | 91.25 |
Granted |  |  | 17 |  |  |  | 391.53 |  |  |  | 17 |  |  |  | 391.53 |
Exercised |  |  | (287 | ) |  |  | 81.78 |  |  |  | (594 | ) |  |  | 82.65 |
Forfeited |  |  | (1 | ) |  |  | 83.24 |  |  |  | (1 | ) |  |  | 83.24 |
Ending balance |  |  | 1,671 |  |  | $ | 97.33 |  |  |  | 1,671 |  |  | $ | 97.33 |
Changes in non-vested stock options were as follows:
|  | Three Months Ended March 31, 2026 |  |  | Six Months Ended March 31, 2026 |
|  | Number of options |  |  | Weighted-Average Grant Date Fair Value per Share |  |  | Number of options |  |  | Weighted-Average Grant Date Fair Value Per Share |
Beginning balance |  |  | 247 |  |  | $ | 48.33 |  |  |  | 473 |  |  | $ | 43.40 |
Granted |  |  | 17 |  |  |  | 173.79 |  |  |  | 17 |  |  |  | 173.79 |
Vested |  |  | (31 | ) |  |  | 64.60 |  |  |  | (257 | ) |  |  | 41.21 |
Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Ending balance |  |  | 233 |  |  | $ | 55.26 |  |  |  | 233 |  |  | $ | 55.26 |
Information about stock options that have vested, or are expected to vest, and are exercisable at March 31, 2026 was as follows:
|  | Number of options |  |  | Weighted-Average Exercise Price |  |  | Weighted-Average Remaining Life in Years |  |  | Aggregate Intrinsic Value |
Options outstanding |  |  | 1,671 |  |  | $ | 97.33 |  |  |  | 4.8 |  |  | $ | 436,191 |
Options vested and exercisable |  |  | 1,439 |  |  |  | 91.91 |  |  |  | 4.4 |  |  |  | 382,708 |
Options vested and expected to vest |  |  | 1,663 |  |  |  | 96.84 |  |  |  | 4.8 |  |  |  | 434,762 |
Restricted stock units The Company generally grants RSUs to eligible employees under its form RSU Agreement for Employees and Consultants (the “Standard Form RSU Agreement”). RSUs granted under the Standard Form RSU Agreement prior to November 14, 2023 generally have a four-year vesting schedule at a rate of 25% per year, and RSUs granted after November 14, 2023 generally have a three-year vesting schedule at a rate of 33.3% per year, in each case generally subject to continued employment. The fair value of RSUs granted is estimated using the closing price of the Company’s stock on the grant date. The Company has also granted RSUs to certain employees under its form attraction and retention RSU agreement (the “Form Attraction and Retention RSU Agreement”), which has from time to time been used for new hires and specific retention purposes. RSUs granted under the Form Attraction and Retention RSU Agreement are generally scheduled to fully vest on the third or fourth anniversary of the respective grant dates, and in each case, subject to continued employment. A summary of the activity for RSUs:
|  | Three Months Ended March 31, 2026 |  |  | Six Months Ended March 31, 2026 |
|  | Number of units |  |  | Weighted-Average Grant Date Fair Value |  |  | Number of units |  |  | Weighted-Average Grant Date Fair Value |
Beginning balance |  |  | 264 |  |  | $ | 159.51 |  |  |  | 309 |  |  | $ | 148.31 |
Granted |  |  | 55 |  |  |  | 391.53 |  |  |  | 62 |  |  |  | 378.10 |
Released |  |  | (82 | ) |  |  | 159.64 |  |  |  | (132 | ) |  |  | 139.31 |
Forfeited |  |  | (1 | ) |  |  | 188.05 |  |  |  | (3 | ) |  |  | 131.21 |
Ending balance |  |  | 236 |  |  | $ | 213.07 |  |  |  | 236 |  |  | $ | 213.07 |
Performance restricted stock units PSUs represent the right to receive a share of the Company’s common stock subject to the achievement of conditions established by the Human Capital & Compensation Committee of the Board and measured over a three-year performance period. Partial vesting in these awards may occur after separation from the Company for retirement eligible employees. The Company awards two types of PSUs, one of which is subject to a market condition (the “rTSR PSUs”) and the other is subject to a performance condition (the “ROIC PSUs”). Subject to the terms of the applicable award agreement, full or partial vesting in these awards may occur upon or after separation from the Company in certain circumstances. Market condition awards The market condition associated with the rTSR PSU awards is based on the Company's relative total shareholder return ("TSR") compared to the TSR generated by the other companies that comprise the S&P 400 Midcap Index over a three-year performance period. Performance at target will result in vesting and issuance of the number of PSUs granted, equal to 100% payout. For rTSR PSUs granted prior to September 30, 2025, performance below or above target can result in an issuance of between 0% to 150% of the target number of rTSR PSUs granted. For rTSR PSUs granted after September 30, 2025, performance below or above target can result in an issuance of 0% to 200% of the target number of rTSR PSUs granted. Expense is recognized based on the weighted average grant date fair value on a straight line basis over the service period, irrespective as to whether the market condition is achieved. The fair value of the rTSR PSUs at the grant date was determined based upon a Monte Carlo valuation method. The assumptions used in the Monte Carlo method to value the rTSR PSUs granted, which includes the grant date fair value outcome from the Monte Carlo method, were as follows:
|  | March 31, 2026 |  |  | March 31, 2025 |  |  | March 31, 2024 |
Expected volatility |  |  | 30.7 | % |  |  | 30.9 | % |  |  | 30.2 | %
Risk free interest rate |  |  | 3.4 | % |  |  | 4.1 | % |  |  | 4.5 | %
Expected life |  | 3 years |  |  | 3 years |  |  | 3 years |
Grant date fair value |  | $ | 367.56 |  |  | $ | 196.63 |  |  | $ | 146.47 |
The PSUs granted receive dividend equivalent units; therefore, no discount was applied for Woodward’s dividends. A summary of the activity for market condition awards:
|  | Six Months Ended March 31, 2026 |
|  | Number of units |  |  | Weighted-Average Grant Date Fair Value |
Beginning balance |  |  | 104 |  |  | $ | 167.17 |
Granted |  |  | 15 |  |  |  | 367.56 |
Forfeited |  |  | — |  |  |  | — |
Ending balance |  |  | 119 |  |  | $ | 193.29 |
There was no activity for market condition awards during the three months ended March 31, 2026. Performance condition awards The performance condition associated with the ROIC PSU awards is based on an internal return on invested capital growth metric. Each of these performance conditions is measured over the same three-year performance period. The cumulative result of these performance conditions can result in a number of shares earned in the range of 0% to 200% of the target number of shares granted. The fair value on the date of grant of the ROIC PSUs is equal to the market price of the Company’s stock at the date of the grant, and the amount of expense recognized over the vesting period is subject to adjustment based on the expected attainment of the performance condition. A summary of the activity for performance condition awards:
|  | Six Months Ended March 31, 2026 |
|  | Number of units |  |  | Weighted-Average Grant Date Fair Value |
Beginning balance |  |  | — |  |  | $ | — |
Granted |  |  | 15 |  |  |  | 298.15 |
Forfeited |  |  | — |  |  |  | — |
Ending balance |  |  | 15 |  |  | $ | 298.15 |
There was no activity for performance condition awards during the three months ended March 31, 2026. Stock-based compensation expense Woodward recognizes stock-based compensation expense on a straight-line basis over the requisite service period. Pursuant to the form agreements used by the Company, with terms approved by the administrator of the applicable plan, the requisite service period can be less than the stated vesting period based on grantee’s retirement eligibility. As such, the recognition of stock-based compensation expense associated with some grants can be accelerated to a period of less than the stated vesting period, including immediate recognition of stock-based compensation expense on the date of grant. At March 31, 2026, there was approximately $43,646 of total unrecognized compensation expense related to non-vested stock-based compensation arrangements, including stock options, RSUs, and PSUs. The pre-vesting forfeiture rates for purposes of determining stock-based compensation expense recognized were estimated to be 0% for members of the Board and 7.2% for all others. The remaining unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 2 years.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent + Details
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