Boeing Drops 9% as Commercial Jet Losses Overshadow Positive Cash Flow; GE Aerospace Ticks Up, RTX Holds Steady

A deeper loss in the commercial jet business is outweighing positive free cash flow and a record backlog at Boeing (NYSE:BA | BA Price Prediction) following its 2026 third-quarter report. Boeing stock is at $171.23, down 9% in morning trading, a decline driven by the quarter’s results rather than broader market trends.

Aerospace and defense stocks as a group are holding up better, with the iShares U.S. Aerospace & Defense ETF (CBOE:ITA) down 1%. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.3%, but the broad market isn’t helping Boeing stock much today.

Shares of GE Aerospace (NYSE:GE) are at $293.71, up 2%, and RTX (NYSE:RTX) is at $197.17, down 0.2%. Both engine suppliers recently beat estimates and raised guidance, benefiting from engine demand even as engine shortages slow Boeing.

Deeper Commercial Jet Loss Sinks Boeing Shares

Boeing reported an adjusted loss of $0.34 per share for Q3 2026, missing the $0.20 deficit analysts expected. Total revenue at the company reached $24.19 billion, slightly below consensus even as it grew from a year earlier. Engine delivery problems also slowed the company’s plans to raise production of its MAX narrowbody and Dreamliner widebody jets, a setback for the ramp that anchors the turnaround.

Commercial Airplanes at Boeing carried the damage, with segment revenue falling 3% to $10.72 billion. That unit’s operating margin dropped to negative 6.5%, deeper than the negative 2.7% it posted in the prior quarter. The quarter’s pressure came from an unfavorable delivery mix, elevated supply chain expenses and higher projected costs for future production rate adjustments.

Cash Flow and Defense Give Boeing a Cushion

Free cash flow at Boeing came in positive at $464 million, up from the year-ago period, while operating cash flow reached $1.5 billion. Those results included Justice Department settlement payments. Debt at the company stood at $45.9 billion, which makes steady cash generation central to restoring the balance sheet.

Boeing’s Defense, Space & Security revenue rose 15% to $7.93 billion, helped by a $252 million gain on the sale of HRL Laboratories. Sales in Global Services rose 4%, giving Boeing another steady contributor outside the commercial jet business. The U.S. Navy also selected Boeing for its F/A-XX next-generation fighter program.

A record $745 billion backlog gives Boeing years of visibility, including $612 billion in commercial orders covering more than 6,300 planes. Chief Executive Kelly Ortberg highlighted the quarter’s milestones, stating, “Recent milestones, including certification of the 737-7 and 737-10 and selection to design and build the Navy’s sixth-generation fighter aircraft, are important steps as we continue building on our progress.” Customers including Turkish Airlines, Ethiopian Airlines and Lufthansa helped Boeing book 300 net commercial orders in the quarter.

Boeing’s Production Ramp Races Its Commercial Losses

Boeing’s bullish case rests on its record backlog turning into deliveries as engine supply improves and production rises. Progress on the 737 program toward a stabilized rate of 47 jets per month supports that view. Delivery of the first 777X is targeted for 2027, which would add a new widebody to the revenue mix.

Skeptics note that the commercial unit’s margin at Boeing moved the wrong way during the quarter. That shortfall marks a second straight quarterly miss on per-share results, following a gap against estimates in Q2 2026. Elevated supply chain costs and the projected expense of future rate adjustments could keep pressure on the unit as output rises.

Boeing now needs engine supply to improve enough to lift MAX and Dreamliner production. It makes sense to keep any BA stock position sizes modest until that problem resolves.

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