Boeing Company (The) (BA) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Jan 26, 2027 — estimated from last year’s reporting date.

Consensus is -$0.39 EPS for Dec 2026 across 8 estimates, ranging -$0.93 to $0.40.

BA Sep 2026

Reported Oct 27, 2026 · before the open

: 61.90%

: -$0.21
: -$0.34
: —
: $24.19B

Reported results

: $24.19B; from $23.27B
: 8.96%; from -10.21%
: $354.00M; from -$4.78B
: 1.46%; from -20.55%
: -$116.00M; from -$5.34B
: -$0.26; from -$7.14

Highlights

Earnings miss: Core loss per share was $0.34 versus consensus for a $0.21 loss, a 61.9% negative surprise; GAAP diluted loss per share was $0.26.
Revenue and sequential trend: Third-quarter revenue rose 4% year over year to $24.19 billion, but eased from $24.56 billion in Q2.
Cash generation: Operating cash flow was $1.50 billion and free cash flow was $464 million, up from $1.12 billion and $238 million, respectively, a year earlier; DOJ settlement payments of about $700 million and higher capital spending were offsets.
Commercial execution: Boeing delivered 161 commercial aircraft, just above 160 a year earlier, but slower-than-planned 737 production stabilization is expected to leave 2026 deliveries below the 500-aircraft target.
Multiyear cash targets: Management expects free cash flow of about $2 billion in 2026, $3 billion in 2027, $6 billion in 2028 and $10 billion in 2029; the plan assumes 777X certification by mid-2027.
Defense growth: Defense, Space & Security revenue rose 15% to $7.94 billion and operating earnings increased to $492 million, including a $252 million gain on the sale of HRL Laboratories.
Record backlog: Total backlog reached $745 billion, including $612 billion at Commercial Airplanes and more than 6,300 commercial aircraft; the Navy F/A-XX selection is not yet included.
Certification milestones: The FAA certified the 737-7 during the quarter and the 737-10 in October; Boeing still targets first 777X delivery in 2027.

Analysis

Boeing’s third quarter showed improved results against a deeply loss-making year-ago period, but its core EPS missed expectations and commercial production execution remains the key constraint. Revenue of $24.19 billion increased 4% year over year, while core loss per share of $0.34 was worse than the $0.21 loss consensus. GAAP diluted loss per share was $0.26, versus $0.67 in Q2 and $7.14 in Q3 2025; the year-ago comparison was heavily affected by a 777X charge. Revenue declined from $24.56 billion in Q2, and GAAP operating income was $354 million, compared with $156 million in Q2 and a $4.78 billion operating loss a year earlier.

The quarter’s defining themes were positive but modest free cash flow, a slower commercial ramp, and a newly quantified multiyear cash recovery plan. Free cash flow was $464 million, supported by working-capital timing but partly offset by about $700 million of DOJ settlement payments and $1.03 billion of capital expenditures. Management targets approximately $2 billion for full-year 2026, then $3 billion in 2027 and $10 billion in 2029, with 777X certification timing and production improvements central to the trajectory. Meanwhile, record backlog of $745 billion and strong defense and services results provide demand and earnings support, but the 737 ramp is taking longer than planned and keeps near-term delivery growth in check.

Quarterly performance

Revenue increased 4% year over year to $24.19 billion, led by higher Defense, Space & Security and Global Services volume, partly offset by less favorable commercial delivery mix. GAAP operating income was $354 million, a 1.5% margin, while core operating earnings were $204 million, a 0.8% margin. The year-over-year improvement reflects the absence of the prior-year 777X reach-forward loss, rather than a return to strong commercial profitability. Net loss was $116 million, compared with a $444 million loss in Q2.

Commercial production

737 ramp: Boeing delivered 124 737s in the quarter and continues to work toward stabilizing production at 47 per month. Management said stabilization will extend into 2027, with the next step to 52 per month targeted for the second half of 2027, subject to stable wings, fuselage supply and production-line readiness.
Delivery implications: The slower ramp is expected to leave 2026 737 deliveries below the 500-aircraft target. Boeing had about 45 737-7 and 737-10 aircraft in inventory at quarter-end and expects to deliver about 30 of these prebuilt aircraft in 2027.
Other programs: The 787 remains at eight aircraft per month; the company expects 90–100 deliveries in 2026, toward the lower end, and plans to begin transitioning to 10 per month late in the year. The 777X remains targeted for first delivery in 2027, with production at about one aircraft per month for most of 2027.

Cash-flow trajectory

Quarterly cash: Operating cash flow was $1.50 billion and free cash flow was $464 million, compared with $1.12 billion and $238 million in Q3 2025. Working-capital timing helped; approximately $700 million of DOJ settlement payments and $1.03 billion of capital expenditures, including investments in Charleston and St. Louis, weighed on free cash flow.
Targets: Management expects approximately $2 billion of free cash flow in 2026, rising to $3 billion in 2027, $6 billion in 2028 and $10 billion in 2029. The 2026 target depends on fourth-quarter seasonal working-capital benefits and an assumed KC-46 lot 13 order in advance; free cash flow for the first nine months was negative $359 million.
Key assumptions: The 2027 target includes about $5 billion of capital expenditures, roughly $1 billion above 2026, and lower BCA customer deposits than the unusually strong 2026 level. The targets assume 777X certification by mid-2027; management expects higher 737 and 787 deliveries, improving cash margins and easing legacy cash drains to drive the later-year growth.

Defense and services

Defense, Space & Security: Revenue rose 15% to $7.94 billion on higher volume, including classified programs, missiles and weapons. Operating earnings reached $492 million and margin was 6.2%, including the $252 million HRL Laboratories sale gain; management also cited improved underlying operations. The segment was selected for the Navy’s F/A-XX fighter and received a seven-year PAC-3 Seeker production award, but the F/A-XX selection is not yet in backlog.
Global Services: Revenue increased 4% to $5.57 billion and operating earnings rose 9% to $1.02 billion, with an 18.3% margin on favorable volume and mix. Excluding the prior-year digital aviation solutions divestiture, management said revenue grew 11%. Segment backlog was $32.7 billion.

Backlog and liquidity

Total backlog grew to a record $745.4 billion from $682.2 billion at year-end 2025, providing substantial visibility but not resolving the delivery and conversion challenge. Commercial Airplanes accounted for $611.8 billion, including more than 6,300 airplanes, after Boeing booked 300 net orders in the quarter. Defense backlog reached $100.5 billion, with 23% from customers outside the U.S.; Global Services backlog was $32.7 billion. Cash and marketable securities were $20.7 billion, up from $20.0 billion at the start of Q3, while debt was unchanged at $45.9 billion. Boeing also had access to $10 billion of undrawn credit facilities.

Boeing Company (The)

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