• Boeing (BA)'s Q3 revenue beat expectations at $24.19 billion, but adjusted core EPS loss widened to -$0.34 vs. -$0.21 expected.
  • Free cash flow turned positive at $464 million, yet commercial airplanes remained a drag with a $697 million operating loss.
  • Production rates for the 737 and 787 are still below targets, raising questions about the company's ability to profitably convert its $745 billion backlog.

Revenue Beat, Earnings Miss

Boeing reported third-quarter revenue of $24.19 billion, surpassing the consensus estimate of $23.84 billion, according to figures released Tuesday. However, the company posted an adjusted core loss of $0.34 per share, wider than the $0.21 loss analysts had anticipated. The mixed results underscore the challenges facing CEO Kelly Ortberg as he navigates a turnaround amid persistent manufacturing issues.

Free cash flow came in at $464 million, exceeding the roughly $330 million that analysts had penciled in, according to Reuters (TRI). The positive cash generation marks a bright spot, but it doesn't signal profitability: Boeing still reported a net loss for the quarter.

Commercial Airplanes Still the Weak Spot

The commercial airplanes segment recorded an operating loss of $697 million, with a negative 6.5% operating margin. That contrasts with the defense unit's 6.2% margin and global services' robust 18.3%. The results reflect ongoing production difficulties, particularly with the 737 MAX and 787 programs.

Boeing is targeting a production rate of 47 aircraft per month for the 737, but stabilizing output at that level has proven elusive. The 787 is currently stable at eight per month, though the company had aimed to raise it to ten. Supply-chain constraints, including engine availability and seat certification delays, have hampered efforts to ramp up.

"What institutional investors like us are really focused on is regulatory stability," said a person familiar with the matter, speaking on condition of anonymity. "Boeing is working closely with the FAA to ensure that any production increase is done safely."

Backlog and Future Outlook

Boeing's total backlog stands at $745 billion, including 6,371 commercial aircraft as of September-end. The company delivered 475 commercial planes through September, an 8% increase year-over-year, but Q3 deliveries fell sequentially to 161 from 171 in Q2. Converting that backlog into deliveries—and profits—remains the central challenge.

The integration of Spirit AeroSystems (SPR), acquired in December 2025, has added costs. Boeing disclosed that inherited customer agreements are expected to cost $1.52 billion, $455 million more than initially estimated. CFO Jay Malave has previously indicated that commercial-airplane profitability may not return until 2027.

Boeing's earnings call is scheduled for 10:30 a.m. EDT, where Ortberg and Malave are expected to provide further details on production plans and cash-flow guidance. Analysts will be listening for any update on the full-year free cash flow target of $1 billion to $3 billion.

Correction: October 27, 2026

An earlier version of this article misstated the adjusted core EPS figure. It has been corrected to -$0.34 per share.