Boeing reported a significant revenue beat in the third quarter of 2026, driven by higher defense and services volume, though commercial airplane margins remained pressured by delivery mix and supply chain costs. The company achieved a major milestone with its free cash flow turning positive at $464 million, sharply exceeding expectations of a multi-billion dollar burn.
Key Highlights
- Free cash flow reached $464 million, a massive swing from the anticipated $1.61 billion loss, aided by favorable working capital timing.
- Commercial Airplanes achieved amended type certification for both the 737-7 and 737-10 models while delivering 161 aircraft during the period.
- Total company backlog expanded to a record $745 billion, bolstered by the U.S. Navy selecting Boeing for the F/A-XX next-generation fighter aircraft program.
- Defense, Space & Security revenue surged 15% to $7.9 billion, supported by improved operational performance and a $252 million gain from the sale of HRL Laboratories.