Boeing Narrows Third Quarter Loss as Defense Revenue Rises

Boeing reduced its third-quarter loss as defense sales increased, while commercial aircraft operations continued to face production and cost pressures. For the three months ended September 30, 2026, the aerospace manufacturer reported higher revenue and improved cash flow, but its adjusted loss per share exceeded analysts' expectations, according to results published October 27.

Boeing recorded a net loss of $116 million, or 26 cents per share, compared with a $5.34 billion loss, or $7.14 per share, in the same period a year earlier. After adjustments for one-time items, the company reported a loss of 34 cents per share, against analysts' expectations of a 21-cent loss, according to LSEG consensus estimates.

Revenue increased 4% year over year to $24.19 billion, exceeding the $23.84 billion analysts had expected. Free cash flow also improved, reaching $464 million compared with $238 million in the third quarter of 2025. The previous year's results included a charge of nearly $5 billion related to the delayed 777X aircraft program.

Defense operations provided a major source of growth, with revenue climbing 15% from a year earlier to $7.94 billion. Boeing also secured a U.S. Navy contract to develop its next-generation fighter jet, adding to recent developments in its defense business.

Chief Executive Officer Kelly Ortberg acknowledged that the company still needs to improve execution as expectations for its recovery increase. In a staff message on October 27, he emphasized operational efficiency alongside the manufacturer's safety and quality priorities.

"Looking ahead, expectations are rising, and they should," said Kelly Ortberg, Boeing's chief executive officer.

Ortberg said the company must improve its day-to-day performance while maintaining established standards. His message comes as Boeing works to stabilize production and increase output of its best-selling narrow-body aircraft.

"That means elevating our performance through lean, productivity and efficiency improvements in our day-to-day work while upholding our high levels of safety and quality," said Kelly Ortberg, Boeing's chief executive officer.

Boeing has been producing approximately 47 737 MAX aircraft per month and plans to increase output in 2027. Ortberg told investors in September that stabilizing production was taking longer than anticipated. The company is expected to provide further details on its production plans during its quarterly earnings conference call scheduled for 10:30 a.m. Eastern time on October 27.

Commercial aircraft operations remained a weak point. Revenue in the division declined 3% year over year to $10.72 billion, while its operating margin fell to negative 6.5%. Boeing attributed the result to a less favorable mix of aircraft deliveries, higher projected costs associated with future production rate adjustments and increased estimated supply chain costs.

The manufacturer delivered 161 commercial aircraft during the third quarter, just one more than in the same period of 2025. Deliveries remain central to Boeing's financial recovery because customers pay most of an aircraft's purchase price when they receive it.

Regulatory progress offered another positive development. The Federal Aviation Administration approved the 737 MAX 10 in the week before the October 27 earnings report, following its approval of the 737 MAX 7 in August. The latest decision completed the remaining certifications for the aircraft line, according to the source report.