BA US S&P 500DJIARussell 1000 Earnings call · transcribed from the recording
Boeing (BA) · Q3 2026 results and valuation
Share price: $174.54 · 2026-11-11
Boeing is an aerospace company that designs and manufactures commercial jet aircraft, military aircraft, and weapons systems. It also provides maintenance, parts, and training services for its commercial and defense customers globally. Source: 10-K annual report (2026-01-30)
Results Q3 2026 vs Q2 2026 · previous quarter · published 27 Oct 2026 and 28 Jul 2026
Net loss narrowed on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
Loss narrowed
Net income vs Q2 2026
Outlook given
Net income -116.0M vs -444.0M
Revenue −1.5%
Net income -116.0M vs -5.34B in Q3 2025 and -444.0M last quarter.
Why Against the same quarter last year (loss narrowed), net income rose because operating margin improved to 1.5% due to higher segment earnings and lower corporate expenses, while the prior year's results were impacted by the 777X charge.
2 · How management spoke
Typical
Less upbeat than 63% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Boeing projects free cash flow of approximately $3 billion in 2027, $6 billion in 2028, and $10 billion in 2029.
Valuation
Is Boeing undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (3-year revenue growth), the model's fair value is $8.84 a share — the stock trades 1875% above it. Today's price assumes 28.7% growth a year.
Current price
$174.54
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+28.7% for 10 yrs
Fair value / share
$8.84
Buy below
$6.63
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
The company projects free cash flow of approximately $3 billion in 2027, $6 billion in 2028, and $10 billion in 2029, with significant growth potential in future years.
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Figure
Revenue increased 4% to $5.6 billion compared to the previous quarter.
Source quote
“Revenue was up 4% to $5.6 billion, dollars.”
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Guidance
The company updated its financial plan to target rate 52 in the back half of 2027 based on learnings from the current year.
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Guidance
Delivering at higher production rates could provide upside to the $10 billion target.
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Figure
Boeing delivered 161 commercial aircraft through the third quarter, marking the highest amount since 2018.
Source quote
“Through the third quarter, we've delivered 161 commercial aircraft, the most since 2018.”
3 more
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Figure
Boeing received FAA certification for the 737-7 in July and the 737-10 last week, advancing the production status of these aircraft models.
Source quote
“We received FAA certification for the 737-7 in July and the 737-10 just last week.”
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Figure
The factory is maintaining a stable production rate of eight 787 aircraft per month.
Source quote
“Switching now to 787, we are stable at eight aircraft per month while the factory is performing well.”
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Key theme
The BDS portfolio saw operating performance gains and steady margin improvement, supporting the company's goal of reaching high single-digit operating margins by the end of the decade.
Source quote
“Across the BDS portfolio, we continue to see operating performance gains in line with our expectations of steady margin improvement, and we remain confident in our path to high single-digit operating margins by the end of the decade.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“For 2027, in addition to the absence of the DOJ payment made in 2026, we expect free cash flow growth to be driven by higher commercial deliveries, modestly improved cash...”
“Across the BDS portfolio, we continue to see operating performance gains in line with our expectations of steady margin improvement, and we remain confident in our path to high single-digit...”
“Pre-cash flow was positive $464 million in the quarter, an improvement versus the prior year, driven by improved working capital, partially offset by the Department of Justice settlement payments of...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 24.19B | 24.56B | −1.5% | 23.27B | +3.9% |
| Gross profit | 2.17B | 2.41B | −10.2% | -2.38B | Turned profit |
| Operating income | 354.0M | 156.0M | +126.9% | -4.78B | Turned profit |
| Net income | -116.0M | -444.0M | Loss narrowed | -5.34B | Loss narrowed |
| EPS | -0.26 | -0.67 | Loss narrowed | -7.14 | Loss narrowed |
| P/E today 17.9 | 19.2 | 77.9 | −58.7 | 12-mo loss | — |
Topics
Most discussed now
- Boeing continues to make progress on flight testing and still need approval to begin the balance of the flight test...
- Pre-cash flow was positive $464 million in the quarter, an improvement versus the prior year, driven by improved working capital,...
- Revenue was $10.7 billion, down 3% year-over-year, driven primarily by less favorable delivery mix.
- Some of those flow enablers just flat out did not yield the flow savings.
- Boeing is going to want to make sure in the next rate break at 52 that it veries much have understood...
Faded since Q2 2026
- Fading Free cash flow was positive $631 million, higher than expectations I shared last quarter based on favorable receipt timing.
- Fading Boeing's commercial certification programs, a key focus for it this year, remain on plan, and I'm proud of its team's...
- Fading Operating margin of negative 2.7% improved compared to last year, primarily driven by increased delivery volume and mix.
- Fading It consists of rising and improving delivery rates on the BCA programs, both the 737 and 787, given the guidance...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
The company entered into a material definitive agreement creating a new direct financial obligation as of August 28, 2026.
- Director or officer change · SEC 8-K
The Boeing Company appointed Ryan L. Shedd as Senior Vice President and Controller, who will receive an annual base salary of $600,000 and a $300,000 cash sign-on award.
- Results of operations · SEC 8-K
Boeing reported second-quarter revenue of $24.6 billion, an 8% increase from $22.7 billion in the same period of the previous year.
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
- Regulation FD disclosure · SEC 8-K
Boeing completed the acquisition of Spirit AeroSystems, incorporating approximately 15,000 employees across five sites into its operations.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-29.
Cash & runway
Cash & equivalents
$9.50B
2026-09-30
Short-term investments
$11.22B
Long-term investments
$970.0M
total liquidity $21.68B
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: +4.3% YoY, +0.3% QoQ.
| Quarter | Shares |
|---|---|
| Q1 2025 | 753.4M |
| Q2 2025 | 756.6M |
| Q3 2025 | 759.9M |
| Q1 2026 | 788.0M |
| Q2 2026 | 790.6M |
| Q3 2026 | 792.7M |
Shares outstanding: 792.4M (2026-10-20)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 75 filings; 50 filings parsed.
Sold by insiders
1.5K shares
$351.5K · 1 transactions
Bought by insiders
3.6K shares
$799.3K · 2 transactions
Net direction
net buying
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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2026
generate approximately $2 billion of free cash flow
Source quote
“We've narrowed our range and expect to generate approximately $2 billion of free cash flow in 2026.”
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2027
improve to about $3 billion of free cash flow
Source quote
“I'm expecting that that'll improve to about $3 billion in 2027, inclusive of the additional CAPEX to support the FAXX development.”
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2028
improve to about $6 billion of free cash flow
Source quote
“We believe this should improve to about $6 billion in 2028 as we start to burn off some of the headwinds and accelerate from there.”
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2029
achieve the $10 billion target
Source quote
“and I expect to achieve the $10 billion target in 2029.”
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in the year
deliver 90 to 100 airplanes
Source quote
“We continue to expect to deliver 90 to 100 airplanes in the year, but expect it to be closer to the lower end given the delays in getting to rate 10.”