Third Quarter 2026
Filed Oct 27, 2026Boeing Reports Third Quarter Results
Revenue, operating cash flow and free cash flow improved, and all three operating segments generated positive or improved operating results versus the prior-year quarter. Commercial Airplanes remained loss-making, the company reported a GAAP net loss, and consolidated debt was $45.9 billion.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third Quarter 2026 total revenuesGAAP | $24.19B | – | 4% |
| Nine Months 2026 total revenuesGAAP | $70.97B | – | 8% |
| Third Quarter 2026 earnings from operationsGAAP | $354M | – | NM |
| Nine Months 2026 earnings from operationsGAAP | $958M | – | NM |
| Third Quarter 2026 operating marginsGAAP | 1.5 % | – | 22.0 Pts |
| Nine Months 2026 operating marginsGAAP | 1.3 % | – | 8.2 Pts |
| Third Quarter 2026 net lossGAAP | ($116 million) | – | NM |
| Nine Months 2026 net lossGAAP | ($551 million) | – | NM |
| Third Quarter 2026 diluted loss per shareGAAP | ($0.26) | – | NM |
| Nine Months 2026 diluted loss per shareGAAP | ($1.04) | – | NM |
| Third Quarter 2026 core operating earnings/(loss)non-GAAP | $204M | – | NM |
| Nine Months 2026 core operating earnings/(loss)non-GAAP | $498M | – | NM |
| Third Quarter 2026 core operating marginsnon-GAAP | 0.8 % | – | 22.5 Pts |
| Nine Months 2026 core operating marginsnon-GAAP | 0.7 % | – | 8.8 Pts |
| Third Quarter 2026 core loss per sharenon-GAAP | ($0.34) | – | NM |
| Nine Months 2026 core loss per sharenon-GAAP | ($1.30) | – | NM |
| Third Quarter 2026 operating cash flowGAAP | $1.50B | – | 33% |
| Nine Months 2026 operating cash flowGAAP | $2.68B | – | NM |
| Third Quarter 2026 additions to property, plant & equipmentGAAP | ($1,032 million) | – | – |
| Nine Months 2026 additions to property, plant & equipmentGAAP | ($3,040 million) | – | – |
| Third Quarter 2026 free cash flownon-GAAP | $464M | – | – |
| Nine Months 2026 free cash flownon-GAAP | ($359 million) | – | – |
| Cash and investments in marketable securities at quarter endother | $20.7B | – | – |
| Consolidated debt at quarter endother | $45.9B | – | – |
| Total company backlog at September 30, 2026other | $745.4B | – | – |
| Commercial Airplanes third quarter deliveriesother | 161 | – | 1% |
| Commercial Airplanes nine months deliveriesother | 475 | – | 8% |
| Third Quarter 2026 total research and development expense, netGAAP | $830M | – | – |
| Nine Months 2026 total research and development expense, netGAAP | $2.65B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Commercial AirplanesThird quarter revenue and operating margin primarily reflected less favorable delivery mix, higher projected costs associated with future production rate adjustments and higher estimated supply chain costs. Operating margin was (6.5) %. | $10.72B | – | (3)% |
| Defense, Space & SecurityThird quarter revenue was driven by higher volume. Operating margin was 6.2 % and primarily reflected a $252 million gain on the HRL Laboratories sale and improved operational performance. | $7.93B | – | 15% |
| Global ServicesThird quarter revenue was on higher volume. Operating margin was 18.3 % and reflected favorable volume and mix. | $5.57B | – | 4% |
Capital returns
- Dividends paid on Mandatory convertible preferred stock were ($259 million) for the nine months ended September 30, 2026.
- Mandatory convertible preferred stock dividends accumulated during the third quarter were $87 million.
What drove it
- Commercial Airplanes booked 300 net orders, including orders from Turkish Airlines, Ethiopian Airlines and Lufthansa.
- The 737 program continues to progress toward stabilized production of 47 per month.
- The 737-7 received amended type certification from the Federal Aviation Administration, and the 737-10 received certification in October.
- The 787 program remains stable at a production rate of 8 per month.
- Defense, Space & Security was selected by the U.S. Navy for a contract to design, build and deliver the F/A-XX next-generation fighter aircraft.
- Global Services captured an award from the U.S. Army to provide maintenance services for the AH-64 Apache fleet.
Concerns
- Commercial Airplanes reported a third quarter loss from operations of ($697 million) and an operating margin of (6.5) %.
- Commercial Airplanes cited less favorable delivery mix, higher projected costs associated with future production rate adjustments and higher estimated supply chain costs.
- The company recorded a GAAP net loss of ($116 million) and GAAP diluted loss per share of ($0.26) in the third quarter.
- Nine-month free cash flow remained negative at ($359 million).
- The F/A-XX order is not included in backlog pending completion of the source selection and evaluation review process.
What to watch
- Progress toward stabilized 737 production of 47 per month.
- 777-9 certification flight testing and the program's target for first delivery in 2027.
- Commercial Airplanes delivery mix, supply chain costs and projected costs associated with future production rate adjustments.
- Whether the F/A-XX source selection and evaluation review process is completed and the order enters backlog.
- Cash flow after the quarter's working-capital timing benefit and approximately $0.7 billion of Department of Justice settlement payments.
Balance sheet and cash flow
- Cash and investments in marketable securities totaled $20.7 billion, compared to $20.0 billion at the beginning of the quarter.
- Consolidated debt was $45.9 billion at quarter end, compared to $45.9 billion at 2Q 2026.
- The company maintains access to credit facilities of $10.0 billion, which remain undrawn.
- Operating cash flow was $1.5 billion in the quarter, reflecting working capital timing partially offset by Department of Justice settlement payments of approximately $0.7 billion.
- Free cash flow was $464 million in the third quarter and ($359 million) for the nine months ended September 30, 2026.
- Debt repayments were ($8,415 million) for the nine months ended September 30, 2026.
- Cash and cash equivalents at end of period were $9,498 million, compared to $10,921 million at December 31, 2025.
Analysis
Boeing reported third-quarter revenue of $24,188 million, up 4% from $23,270 million, and returned to GAAP operating earnings of $354 million from a ($4,781 million) operating loss. GAAP operating margin improved to 1.5 % from (20.5) %, while non-GAAP core operating earnings were $204 million and core operating margin was 0.8 %. The company nevertheless recorded a GAAP net loss of ($116 million), or ($0.26) per diluted share, and a non-GAAP core loss per share of ($0.34).
The segment mix was uneven. Commercial Airplanes revenue declined (3)% to $10,720 million despite deliveries of 161 airplanes, versus 160 a year earlier. The segment's ($697 million) operating loss and (6.5) % margin reflected less favorable delivery mix, higher projected costs associated with future production rate adjustments and higher estimated supply chain costs. By contrast, Defense, Space & Security revenue rose 15% to $7,935 million and operating margin reached 6.2 %, supported by higher volume, improved operational performance and a $252 million gain on the HRL Laboratories sale. Global Services revenue increased 4% to $5,574 million, with an 18.3 % margin supported by favorable volume and mix.
Cash generation improved in the quarter. Operating cash flow was $1,496 million and free cash flow was $464 million, with operating cash flow reflecting working capital timing partially offset by approximately $0.7 billion of Department of Justice settlement payments. Capital expenditures were ($1,032 million) in the quarter, primarily reflecting higher investments in Charleston and St. Louis sites. For the nine-month period, operating cash flow was $2,681 million but free cash flow remained ($359 million) after ($3,040 million) of additions to property, plant and equipment.
The balance sheet showed $20.7 billion of cash and investments in marketable securities at quarter end, up from $20.0 billion at the beginning of the quarter, while consolidated debt remained $45.9 billion. The company repaid ($8,415 million) of debt during the first nine months and had $10.0 billion of undrawn credit facilities. Backlog rose to $745,431 million from $682,207 million at December 31, 2025, led by Commercial Airplanes backlog of $611,833 million, Defense, Space & Security backlog of $100,505 million and Global Services backlog of $32,725 million.
Boeing did not provide forward financial guidance in the release. Operational milestones included amended type certification for the 737-7, certification of the 737-10 in October, and selection for the F/A-XX contract, although that order is not yet included in backlog. The central reported execution issues remain Commercial Airplanes profitability, 737 production stabilization, supply chain costs, delivery mix, and the 777X program's certification flight testing and first-delivery target in 2027.
Management, verbatim
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.
Kelly Ortberg, Boeing president and chief executive officer
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.
Kelly Ortberg, Boeing president and chief executive officer
Not in the filing
stated, not guessed- Forward financial guidance for revenue, gross margin, operating expenses, tax rate and other financial metrics was not provided.
- Previous outlook was not provided.
- GAAP gross margin and non-GAAP gross margin were not reported.
- Common-stock repurchases and common-stock dividends were not reported.
- Prior-quarter values for revenue, operating earnings, net loss, earnings per share, cash flow and segment revenue were not reported.
- Third-quarter total debt comparison with the prior-year quarter was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.