FY26 Guide Ahead of Cons; Self-help and Backlogs Continue to Point to Accelerating Growth Ahead of Algorithm

Research evidence excerpt

FY26 Guide Ahead of Cons; Self-help and Backlogs Continue to Point to Accelerating Growth Ahead of Algorithm

Update

July 22, 2026 11:20 AM GMT

Morgan Stanley & Co. LLCMWestinghouse Air Brake Technologies Corp | North Angel Castillo

America Equity Analyst

Angel.Castillo@morganstanley.com +1 212 761-1931

Stefan Diaz, CFA

Equity AnalystFY26 Guide Ahead of Cons; Stefan.Diaz@morganstanley.com +1 212 761-1834

Oliver Jiang

Research AssociateSelf-help and Backlogs Oliver.Jiang@morganstanley.com +1 212 761-6458

Esther O Osinaiya

Research AssociateContinue to Point to Esther.Osinaiya@morganstanley.com +1 212 761-3176

Westinghouse Air Brake Technologies Corp (WAB.N, WABAccelerating Growth Ahead of

US)

Machinery & Construction | United States of AmericaAlgorithm

Stock Rating Overweight

Industry View Attractive

Price target $318.00

AlphaSignals Earnings Reaction Shr price, close (Jul 21, 2026) $263.53

Mkt cap, curr (mm) $44,899

Strengthens our thesis Modest upside Modest revision higher 52-Week Range $284.79-184.40

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

Reports 2Q26 Adj. EPS of $2.76 vs. MSe $2.62 / cons $2.61

Raised 2026 adj. EPS guide to $10.60 - $10.90 (was $10.25 - $10.65) vs. MSe

$10.61 / cons $10.62

Total Backlog growth of 41.7% YoY and sequentially at 0.4% QoQ

Stock Reaction: Expect a positive stock reaction to another solid beat & raise with

steady backlogs and >1x book to bill.

See below for notable takeaways from WAB's earnings release. For detailed

variance table of results vs. expectations see Exhibit 1 and guidance summary in

Exhibit 2 .

• (+) 2Q Adj. EPS of $2.76 beat MSe $2.62 / cons $2.61

• (+) Raised full year 2026 adj.