Boeing Stock Plunges 11% to 18-Month Low After Pushing 737 Max Production Ramp to Late 2027

Boeing reported third-quarter 2026 revenue of $24.19 billion, up 4% year over year and ahead of the $23.84 billion consensus, but posted a wider-than-expected adjusted core loss of 34 cents per share against an estimate of 21 cents. The GAAP net loss narrowed sharply to $116 million, or 26 cents per share, from a $5.34 billion loss in the same period a year ago, when the company took a roughly $5 billion charge on its 777X program. Free cash flow of $464 million beat the $325 million estimate, and operating cash flow rose 33% year over year to $1.50 billion, while the total order backlog reached a record $745 billion.

The commercial airplane division remained the central drag. Revenue there fell 3% year over year to $10.72 billion, missing the $10.94 billion estimate, and the unit posted an operating loss of $697 million at a negative 6.5% margin, roughly double the $361 million loss analysts had expected. Engine delays and an unfavorable delivery mix held back output, and Boeing now says it will not reach its target of producing 52 737 Max jets per month until the second half of 2027, later than previously anticipated, due in part to slower wing supply. The company also acknowledged it will fall short of around 500 737 deliveries this year, with 787 deliveries expected near 90 units, the lower end of prior guidance. Supplier shortages that disrupted factory operations in the quarter, affecting the KC-46A tanker and 777 Freighter programs, are expected to continue into 2027 and generate abnormal production costs. The 777X still lacks FAA authorization to complete flight-test certification, though first delivery remains targeted for 2027.

Defense, Space and Security provided the clearest offset, with revenue jumping 15% year over year to $7.9 billion at a 6.2% operating margin, though a $252 million asset-sale gain accounted for roughly half of that division's operating profit. Global Services contributed $5.6 billion, up 4%, at an 18.3% margin. During the quarter Boeing received amended type certifications from the FAA for the 737-7 and 737-10 variants, and was selected by the U.S. Navy to design and build its next-generation fighter aircraft. CEO Kelly Ortberg, speaking on CNBC, said financial uncertainty across the company is narrowing and confirmed Boeing expects positive free cash flow for full-year 2026, its first in several years, with a longer-term target of $10 billion pushed out to 2029.

Shares fell roughly 11% on the day to around $169, their lowest level in 18 months and the steepest single-day decline since April 2025, erasing approximately $15 billion in market capitalization. The stock is down about 26% year to date, making it one of the worst performers in the Dow Jones Industrial Average. Langenberg upgraded Boeing on the strength of its backlog, while Seeking Alpha's quant model maintained a hold rating, citing delivery bottlenecks and sharply cut analyst EPS estimates.