Schwab Network on $BA (Oct 27, 2026)
Boeing's quarter was mixed: a wider-than-expected 34-cent loss and lower commercial aircraft revenue offset a 3.9% revenue rise to $24.19 billion, $464 million positive free cash flow, a record $745 billion backlog and 737 Max certification. The stock fell premarket and is down 15% over three months and 18% over six months; Boeing still must deliver backlogged aircraft to improve cash flow and its balance sheet.
Jump to any passage
Now let's move on to the story of Boeing. We had some stocks whose earnings we would look at. Boeing is one of them. Boeing's stock fell by about $3.50 in pre-market trading . They announced their earnings early this morning.
The net loss was 34 cents per share . That was slightly bigger than analysts had expected . They were expecting something between 20 and 21 cents. So , a bigger loss than expected, but the revenue was a positive surprise.
It reached $24.19 billion, an increase of 3.9% year-on-year, and slightly higher than expectations of around $24 billion.
As for operating cash flow, it reached $1.5 billion, an increase of 33 %. Free cash flow, and this is important because free cash flow turned positive here, reaching $464 million .
So, this is good news. Boeing's backlog of orders hit a record high of $745 billion . For the first time in a long time, all 737 Max aircraft are now certified. So, good news on free cash flow, but there is still suffering in some parts of the company, somewhat disappointing earnings results , and the stock is slightly lower ahead of the open.
We'll see what happens. I'm sure Kelly Ortberg, the CEO of Boeing , will make some comments throughout the day. We'll see, but all things considered, it was still a matter of the earnings report showing that commercial aircraft revenues had declined.
The defense, space and security sector saw its revenues grow by 15%, and global services continued to be a strong contributor, with profits of $1 billion and an operating margin of 18.3%.
So, there are still some challenges. The bottom line is that they have to fulfill these backlogged orders, and they have to deliver these aircraft, which will increase free cash flow and improve their balance sheet .
This is a company that is still trying to regain its balance, Nicole.
Yes, and look, over the past few months, there have been downward trends. A 15% drop in three months, and an 18% drop in six months , and the 52-week high of $254 seems out of reach. So, it's been a long road for Boeing.
Watchpoints
What this channel has said about $BA
Schwab Network has 5 calls on this stock; only the adjacent ones are shown.