economy

January 27, 2026

Boeing shares swing wildly on mixed results, but the turnaround is progressing

Production improvements, coupled with improving free cash flow, tell us the stock should move higher this year.

Boeing shares swing wildly on mixed results, but the turnaround is progressing

TL;DR

  • Boeing's stock initially fell after reporting a Q4 earnings miss, primarily due to losses in its defense business.
  • Shares recovered and reached a 52-week high after management expressed confidence in achieving future free cash flow goals.
  • Fourth-quarter revenue increased by 30% year over year to $23.95 billion, exceeding estimates.
  • The company reported a $507 million loss in its Defense, Space & Security segment, largely driven by issues with the KC-46A program.
  • Commercial Airplanes revenue surged, with deliveries increasing significantly.
  • Boeing maintained a record backlog valued at $692 billion.
  • Management expects full-year 2026 free cash flow to be positive, ranging between $1 billion and $3 billion.
  • A potential 'durability issue' was identified on the 777 engine, but it is not expected to impact 2027 delivery rates.

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