Boeing Q3 Adjusted Loss Widens Beyond Estimates as Commercial Jet Unit Sputters, Stock Hits 18-Month Low

Boeing reported third-quarter 2026 revenue of $24.19 billion, beating the consensus estimate of roughly $23.85 billion and rising 4% from a year earlier, but the adjusted core loss per share widened to 34 cents against the Wall Street estimate of a 21-cent loss. The reported GAAP net loss narrowed sharply to $116 million, or 26 cents per share, from $5.34 billion, or $7.14 per share, in the same period a year ago.

The commercial airplanes division was the primary drag. That unit generated $10.72 billion in revenue, down 3% year over year and below the $10.94 billion estimate, and recorded an operating loss of $697 million at a negative 6.5% margin, hurt by an unfavorable delivery mix, rising production costs, and supply chain constraints. By contrast, the Defense, Space and Security segment rose 15% year over year to $7.94 billion at a 6.2% operating margin, and Global Services contributed $5.6 billion, up 4%, at an 18.3% margin. Boeing was also selected by the U.S. Navy to design and build its next-generation fighter aircraft during the quarter.

Cash generation offered a brighter signal. Operating cash flow reached $1.50 billion, up 33% year over year and ahead of the $1.24 billion estimate, while adjusted free cash flow of $464 million topped the $325 million consensus. The company's total backlog hit a record $745 billion, supported by FAA amended type certifications for the 737-7 and 737-10 variants during the quarter.

On the production front, Boeing said the 737 Max continues toward a stabilized rate of 47 aircraft per month, though Reuters reported the company does not expect to reach that target until early 2027. Boeing also announced it will begin transitioning 787 Dreamliner production to 10 per month this year, with a rate of roughly 12 per month targeted for 2029. The 777X program remains on track for its first delivery in 2027.

CEO Kelly Ortberg, speaking in an exclusive CNBC interview, said the uncertainty in Boeing's financial performance is narrowing and that the company expects to generate positive free cash flow in 2026, its first in several years, with a longer-term target of $10 billion. Despite those signals, shares fell as much as 10% after Boeing cut its delivery goal, hitting an 18-month low near $171 and making Boeing one of the worst-performing stocks in the Dow Jones Industrial Average this year, down roughly 17%.