Boeing third-quarter revenue rises 4% to $24.2 billion; backlog reaches record $745 billion

Boeing (NYSE: BA) reported third-quarter revenue of $24.2 billion, up 4% from a year earlier, and a GAAP loss of $0.26 a share, compared with a loss of $7.14 a share in the same quarter of 2025, according to its earnings release issued on Tuesday, October 27.

What happened

The company said revenue reflected higher defense and services volume and a less favorable commercial delivery mix. Net loss was $116 million, against a net loss of $5.339 billion a year earlier. Core loss per share, a non-GAAP measure that excludes pension-related items, was $0.34, compared with $7.47 in the third quarter of 2025.

Operating cash flow was $1.5 billion, up 33% from $1.123 billion a year earlier. After $1.032 billion of additions to property, plant and equipment, free cash flow, which Boeing defines as a non-GAAP measure, was $464 million. Boeing said operating cash flow reflected working capital timing, partly offset by Department of Justice settlement payments of approximately $0.7 billion.

Total company backlog grew to a record $745 billion at quarter end, including more than 6,300 commercial airplanes. Boeing reported cash and marketable securities of $20.7 billion and consolidated debt of $45.9 billion, and said its $10.0 billion of credit facilities remain undrawn.

Kelly Ortberg, Boeing's president and chief executive officer, said in the release: "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."

The three segments

Commercial Airplanes delivered 161 airplanes, against 160 a year earlier. Segment revenue fell 3% to $10.72 billion, and the segment posted a loss from operations of $697 million, an operating margin of negative 6.5%. Boeing attributed the result to a less favorable delivery mix, higher projected costs associated with future production rate adjustments and higher estimated supply chain costs. The segment booked 300 net orders in the quarter, including orders from Turkish Airlines, Ethiopian Airlines and Lufthansa.

Defense, Space & Security revenue rose 15% to $7.935 billion, and earnings from operations were $492 million, an operating margin of 6.2%. Boeing said the margin primarily reflects a $252 million gain on the sale of HRL Laboratories and improved operational performance. Backlog at the segment reached a record $101 billion.

Global Services revenue rose 4% to $5.574 billion, with earnings from operations of $1.019 billion and an operating margin of 18.3%. Segment backlog was $33 billion.

Why it matters

The year-earlier comparison is distorted by a large charge. Boeing said in the release that third-quarter 2025 operating margins in Commercial Airplanes were affected by a charge on the 777X program. GAAP operating earnings were $354 million in the latest quarter, against a loss from operations of $4.781 billion a year earlier.

For the first nine months of 2026, Boeing reported revenue of $70.965 billion, up 8% from $65.515 billion, and a net loss of $551 million, compared with a net loss of $5.982 billion in the same period of 2025. Free cash flow for the nine months was negative $359 million, an improvement from negative $2.252 billion.

What to watch

Boeing said the 737 program continues to progress toward stabilized production of 47 airplanes per month, that the 787 program remains stable at a production rate of 8 per month, and that the 777X program remains on track for first delivery in 2027. It also said the 737-7 received amended type certification from the Federal Aviation Administration in the quarter and the 737-10 in October.

The US Navy's selection of Boeing for the F/A-XX next-generation fighter contract is not included in backlog, the company said, pending completion of the source selection and evaluation review process.