Overview
Since the Report − 0.1%
Revenue grew 3.9% year over year, EPS missed the estimate by 61.9%; the stock fell 10.7% in its first reaction.
- RevenueQ3
- $24.19B
- Estimate $23.84B · 1.5% Beat
- Core EPS
- −$0.34
- Estimate −$0.21 · 61.9% Below
Verdict
SELLBoeing's third-quarter revenue met expectations, but its core loss of $0.34 per share came in 62% below estimates. The stock closed down 10.7% as the 737 production target slipped to early 2027. The measure to watch next is fourth-quarter deliveries and free cash flow.
Close on Report DayOct 27
$168.18▼ 10.7%Report-Day Move
- Market Cap(Today)
- ≈ $133 B
- 1Y Return(At Report)
- − 24%
- P/E(At Today's Price · $8.61 · Trailing 12M)
- 19.5
- Net Margin(Trailing 12M)
- 2.6%
Earnings Summary
In 30 Seconds- Revenue of $24.19B met expectations, but core EPS of −$0.34 came in 62% below estimates.
- The commercial margin slid to −6.5%, and the 737 target of 47 jets a month moved to early 2027.
- Shares closed down 10.7% at $168.18 as the production timeline slipped.
The Numbers
Commercial Operating Margin
−6.5%
Q2 −2.7% · 3.8-Point Contraction
Free Cash Flow
$464M
Estimate $330M · 40% Beat
Total Backlog
$745B
Record · ▲ 4.2% QoQ
Stock Reaction
−10.7%
Close to Close · $188.31 → $168.18
Quarterly Revenue ($ Billion)
23.27
Q3 25 · $23.3 B
23.95
Q4 25 · $23.9 B · QoQ + 2.9%
22.22
Q1 26 · $22.2 B · QoQ − 7.2%
24.56
Q2 26 · $24.6 B · QoQ + 10.5%
24.19
Q3 26 · $24.2 B · QoQ − 1.5% · YoY + 3.9%
- Q3 25
- Q4 25
- Q1 26
- Q2 26
- Q3 26
Q4 2026 Company Guidance
- 2026 Free Cash Flow1 – 3 billion1 billion3 billion
Company Target · 9M −$0.36B · Q4 Needs at Least $1.4B
- 737 Monthly Production47 jets
Target Was Summer 2026 · Moved to Early 2027 · Q3 ~41 a Month
- 787 Monthly Production8 jets
Stable at 8 a Month Per ReleaseFlat
How to Read the Chart
The blue band is the company's low-high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. When the company gave a single number rather than a range and no market expectation is known, that row gets no band at all: there is no length to measure and no position to compare. Axis is ±57% around the midpoint.
Segment and KPI Data
Revenue by Segment
- Commercial Airplanes$10.7 BShare 44.2%▼ 3.0% YoY
- Defense, Space & Security$7.94 BShare 32.8%▲ 15.0% YoY
- Global Services$5.57 BShare 23.0%▲ 4.0% YoY
Key Metrics
Commercial Deliveries
161 jets
▲ 0.6% YoYPress Release
Commercial Net Orders
300 jets
Press Release
Total Backlog
$745 B
Press Release
Defense Backlog
$101 B
Press Release
Free Cash Flow
$464 M
▲ 95.0% YoYPress Release
Total Debt
$45.9 B
Press Release
Shares are computed over the segment total: $24.2 B. Source: Press Release.
Metrics come only from the company's own filings; each one names the document it was taken from.
“Recent milestones, including certification of the 737-7 and 737-10 and selection to design and build the Navy's sixth-generation fighter aircraft, are important steps as we continue building on our progress. But we are not done. We remain focused on safety and quality as we redouble our efforts on Lean and disciplined execution to deliver on our commitments and build the durable performance our stakeholders expect.”
- 737-7 and 737-10 Certification
- F/A-XX Fighter Selection
- Lean and Disciplined Execution
Summary and Review
Summary
Boeing reported third-quarter revenue of $24.19 billion. That is up 3.9% year over year and 1.5% above the LSEG estimate, so the revenue gate is in line. The core loss per share was $0.34, 62% worse than the $0.21 loss expected. That closes the earnings gate. The guidance gate is closed too: CEO Kelly Ortberg said the 737 target of 47 jets a month now slips to early 2027.
The stock edged higher in premarket trading, then closed at $168.18, down from $188.31. The drop is 10.7%, taking shares to their lowest level since April 2025. The market did not read this report as a defense story; it read it as a production story. Defense revenue grew 15%, but the commercial margin slid from −2.7% to −6.5%. Reuters reported that the company's 2027-2028 cash flow path also fell short of expectations.
The score is 44 and the verdict is sell; it rates the quarter, not the stock. Revenue was in line, while the earnings and guidance gates are closed. Free cash flow above estimates and a record $745 billion backlog keep the score in the upper half of its band. Still, the commercial airplanes unit remains loss-making, and the loss widened this quarter. The recovery timeline has slipped once again.
Full Review
Revenue in line, loss deeper than expected.
Total revenue was $24.19 billion. That is 3.9% above the same quarter last year. Defense and services drove the growth, while commercial airplane revenue fell 3%. The company returned to an operating profit of $354 million. But $573 million of interest expense wiped out that profit. The GAAP net loss was $116 million, or $0.26 per share. The core loss, which excludes pension items, was $0.34 per share. A year ago the core loss was $7.47, but that quarter carried a large 777X charge. Much of the annual improvement therefore comes from a low base. To separate these layers of an earnings day, see the how to read earnings day guide.
Commercial airplanes slipped again.
Commercial Airplanes delivered 161 jets. That is one more than a year ago but 10 fewer than in the second quarter. 737 deliveries totaled 124, or about 41 a month. The segment's operating margin was −6.5%. It was −2.7% in the second quarter, a 3.8-point contraction. A year ago the margin was −48.3% because of the 777X charge, so that comparison misleads. The company tied the loss to a less favorable delivery mix, costs of future rate adjustments and supply chain expenses. Ortberg had earlier said wings could not be built fast enough. The 47-a-month goal moved from this summer to early 2027. According to Reuters, that means the 500-delivery target for the year will also be missed.
Defense and services carried the load.
Defense, Space & Security revenue rose 15% year over year to $7.94 billion. The segment's operating margin was 6.2%, up from 1.7% a year ago. However, 3.2 points of that margin came from a one-time $252 million gain on the HRL Laboratories sale. Excluding the gain, the margin was about 3.0%. The U.S. Navy selected Boeing for the next-generation F/A-XX fighter. That order is not in backlog until the evaluation process ends. Global Services revenue rose 4% to $5.57 billion. The segment earned $1.02 billion of operating profit at an 18.3% margin. That profit alone covers the $697 million commercial airplanes loss.
Cash was strong, but customer deposits drove it.
Operating cash flow was $1.50 billion. After $1.03 billion of capital spending, free cash flow was $464 million. That is roughly double last year's $238 million and 40% above the $330 million estimate. The quarter included about $0.7 billion of Justice Department settlement payments. Nine-month free cash flow is still −$359 million. Customer advances and progress billings rose $8.1 billion since the start of the year. A large share of the cash comes from these deposits rather than deliveries. Total debt is $45.9 billion, against $20.7 billion of cash and securities. For more on this, see the cash flow guide.
Watch a single line next quarter.
The company's 2026 free cash flow target is $1 billion to $3 billion. After nine months it stands at −$359 million. Reaching the low end requires at least $1.4 billion in the fourth quarter. That is more than double the $631 million of the second quarter, the best recent quarter. In the January report, watch one line: fourth-quarter free cash flow. Above $1.4 billion, the recovery timeline still stands. Below it, this quarter's production delay has reached cash as well. The second measure is 737 deliveries: the margin story will not change until monthly output moves above 41 jets.
Looking Ahead
Strengths and Risks
6 Strengths · 6 RisksStrengths
6- Total backlog hit a record $745 billion, including more than 6,300 commercial airplanes.
- Defense revenue rose 15% year over year to $7.94 billion.
- Free cash flow of $464 million rose 95% year over year and beat the estimate by 40%.
- The 737-7 and 737-10 won certification, unlocking delivery of stored jets.
- The U.S. Navy selected Boeing for the next-generation F/A-XX fighter.
- Global Services earned $1.02 billion of operating profit at an 18.3% margin.
Risks
6- The commercial airplanes operating margin fell to −6.5%, 3.8 points below the second quarter.
- The 737 target of 47 jets a month slipped from this summer to early 2027.
- Nine-month free cash flow is −$359 million, leaving the annual target to the fourth quarter.
- Total debt is $45.9 billion and quarterly interest expense is $573 million.
- 3.2 points of the defense margin came from a one-time HRL Laboratories sale gain.
- Trailing four-quarter core EPS looks positive only because of a one-time sale gain in Q4 2025.
What to Watch
4- Boeing aims to reach a 737 production rate of 47 jets a month in early 2027.
- First 777X delivery is expected in 2027; 777-9 certification flight testing continues.
- The F/A-XX contract will be added to backlog once the source selection review ends.
- Fourth-quarter results are expected in late January 2027.
Upcoming Earnings
To Understand This