Boeing stock rallied on the strength of a revenue beat and record backlog despite reporting a larger-than-expected earnings loss in the second quarter, as investors focused on the company’s improving commercial aircraft deliveries and operational momentum.
The planemaker reported Q2 revenue of $24.6 billion, topping the consensus estimate of $24.25 billion, according to MarketBeat. However, Boeing’s adjusted loss per share came to $0.76, more than double the $0.30 loss analysts had forecast, driven by a $280 million charge on the Air Force One program.
The Air Force One charge stemmed from Boeing’s Defense, Space & Security segment, which swung to a $15 million operating loss from a $110 million profit a year earlier. The company took the charge as it ramped up investment in production and certification resources for the VC-25B presidential aircraft, though it still expects first delivery in 2028.
On the commercial side, Boeing’s results improved significantly. The Commercial Airplanes segment posted revenue of $11.8 billion, up from $10.9 billion a year earlier, as commercial aircraft deliveries climbed 14% to 171 planes from 150 in the same period last year. The segment’s operating loss narrowed to $322 million from $557 million a year ago, reflecting the higher delivery volume and improved performance.
During the quarter, Boeing moved forward with its production ramp. The 737 program began transitioning to a 47-per-month production rate, and a new assembly line opened in Everett, Washington in July. Certification flight testing was completed on both the 737-7 and 737-10 variants, with the company continuing to anticipate certification in 2026 and first delivery in 2027.
Boeing’s total backlog grew to a record $715 billion, including over 6,200 commercial aircraft valued at $597 billion. The company booked 246 net orders during the quarter, including orders from Korean Air, Delta Air Lines, and SMBC Capital. The first-half commercial deliveries of 314 aircraft marked the highest first half since 2018, with the 737 program accounting for 243 of those handovers.
Free cash flow turned positive for the first time in recent quarters. Boeing generated $631 million in free cash flow, swinging from a $200 million cash burn it recorded in the same period last year. Operating cash flow reached $1.4 billion, reflecting higher commercial deliveries and favorable working capital timing. The company ended the quarter with $20 billion in cash and investments and reduced consolidated debt to $45.9 billion from $47.2 billion at the start of the quarter.
CEO Kelly Ortberg signaled confidence in the company’s trajectory. “Our operations are more stable and key certification programs remain on plan,” Ortberg said. “Our focus has been on restoring trust and we are now building on that through a sustained focus on safety, quality, and on-time performance.” The comments reflected Boeing’s broader turnaround effort following years of safety and quality challenges.
Sources
- Quartz — Boeing’s Q2 2026 earnings, revenue beat, Air Force One charge, commercial aircraft deliveries, and backlog
- Boeing Investor Relations — Official Q2 2026 earnings press release with financial tables, segment results, and executive commentary
- MarketBeat — Revenue beat and miss details, EPS results
- Morningstar/MarketWatch — Stock rally context, revenue growth, commercial airplane revenue increase, and backlog milestone
