Moog surges on record earnings, backlog jump
Aerospace contractor raises full-year guidance after Q1 results show double-digit sales growth across all segments
Moog Inc. shares rallied after the aerospace and defense contractor reported fiscal first-quarter results that blew past analyst expectations, prompting the company to raise its full-year guidance on the strength of record bookings and swelling order backlog.
The East Aurora, New York-based manufacturer posted adjusted earnings of $2.63 per diluted share for the quarter ended January 3, 2026, exceeding the average analyst estimate of $2.21, according to FactSet and Zacks Investment Research. That represents a 37% increase from the prior year's $1.92 per share. Net sales climbed 21.2% to $1.1 billion, topping the consensus forecast of roughly $990 million and marking record performance across all of Moog's business segments.
The robust performance, driven by broad-based demand across commercial aircraft, space and defense, and military aircraft markets, led management to increase its outlook for fiscal year 2026. Moog now expects full-year sales to reach $4.3 billion, up from previous guidance of $4.2 billion, and adjusted earnings per share of $10.20. Both projections exceed current analyst estimates.
Perhaps most telling for the company's trajectory is the surge in its order book. The twelve-month backlog jumped 30% to a record $3.3 billion, providing strong revenue visibility for the remainder of the fiscal year. Quarterly bookings totaled $2.3 billion, with particular strength in commercial aircraft and new space and defense contracts. The backlog growth signals sustained demand momentum that could extend beyond the current fiscal period.
"We delivered outstanding results in the first quarter with record sales across all segments," the company stated in its earnings report. "Our strong operational performance and healthy backlog position us well to achieve our raised guidance for the year."
Profitability metrics also improved despite some offset from tariff pressures. Operating margin expanded 90 basis points to 12.3%, while GAAP earnings per share rose to $2.46 from $1.78 in the prior-year quarter. Net income increased to $78.9 million from $57.5 million a year earlier. The margin expansion demonstrates the company's ability to leverage higher sales volumes and operational efficiencies, even in a challenging cost environment.
In addition to the earnings beat, Moog announced a 3% increase in its quarterly dividend to $0.30 per share, payable February 26 to shareholders of record February 17. The dividend hike marks the company's continued commitment to returning capital to shareholders while investing for growth.
Moog's stock has been on an impressive run, gaining roughly 65% over the past year and 18% year-to-date, reflecting growing investor confidence in the company's aerospace and defense positioning. Analysts have maintained a largely positive outlook, with three of four covering analysts rating the shares a buy or strong buy and an average price target of approximately $282, according to market data. However, some analysts caution that after the stock's significant rally, expectations are now elevated and any shortfall could shift focus to longer-term challenges including revenue growth sustainability and the company's debt load.
The company's performance underscores broader strength in the aerospace and defense sector, which has benefited from robust commercial aviation recovery, increased defense spending globally, and growing investment in space infrastructure. Moog's specialized motion and fluid control systems position it as a critical supplier across these markets, providing some insulation from cyclicality through diversification across commercial, military, and industrial applications.
Looking ahead, investors will be watching whether Moog can maintain its momentum through the remainder of fiscal 2026, particularly given the record backlog that should provide revenue visibility. The company's ability to execute on its raised guidance while managing margin pressures from tariffs and potential supply chain constraints will be key metrics to monitor in subsequent quarters.