Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Boeing reported Q1 2026 revenue of $22.2B (+14.0% YoY) with a near-breakeven net loss of -$4M, showing meaningful improvement from the prior year but still facing thin margins and deeply leveraged balance sheet.
Revenue
$22.22B
+13.96% YoY
EPS (Diluted)
-$0.11
+31.25% YoY
Gross Margin
11.5%
-0.9 pts YoY
Operating Income
$448M
-2.82% YoY
Source: SEC XBRL
Boeing (BA) reported Q1 FY2026 revenue of $22.22B, up 14.0% year over year. Operating margin was 2.0%, down 0.4 points from 2.4% a year earlier. Operating cash flow was negative $179M. BA's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | -0.76 | -0.31 | Miss -142.1% |
| Mar 2026This filing | -0.20 | -0.86 | Beat +76.7% |
| Dec 2025 | -1.12 | -0.40 | Miss -179.1% |
| Sep 2025 | -7.47 | -4.73 | Miss -57.9% |
Adjusted (non-GAAP) EPS of -$0.20 versus the -$0.86 analyst consensus — a +76.7% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was -$0.11.
Compiled by AI from this SEC filing
Boeing's Q1 2026 revenue rose 14.0% YoY to $22.2B from $19.5B, suggesting a meaningful recovery in deliveries and/or services demand following prior-year disruptions. This top-line expansion is the most significant positive signal in the quarter.
Source: 10-Q Income Statement
Cost of revenue grew 15.2% YoY to $19.7B, outpacing revenue growth of 14.0%, which compressed gross margin from 12.4% to 11.5%. This indicates ongoing cost pressures — likely from supply chain, labor, or program-level inefficiencies — that are eroding the benefit of higher revenues.
Source: 10-Q Income Statement
Operating income declined slightly to $448M from $461M (-2.8% YoY), meaning the incremental revenue did not translate into incremental operating profit. Higher R&D spending (+7.0% to $903M) and elevated costs absorbed the revenue gains.
Source: 10-Q Income Statement
Operating cash flow improved from -$1.6B to -$179M YoY (+88.9%), signaling that Boeing is moving closer to cash flow breakeven. The large positive investing cash flow of $5.7B (vs. -$1.7B prior year) likely reflects asset sales or divestitures rather than organic improvement.
Source: 10-Q Cash Flow Statement
Long-term debt fell 12.0% YoY to $47.0B, and stockholders' equity turned sharply positive to $5.99B from -$3.33B, a 280% improvement. However, the debt-to-equity ratio remains extremely elevated at 26.5x, reflecting the still-fragile financial structure.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Boeing's cost of revenue grew faster than revenue (15.2% vs. 14.0%), compressing gross margins to 11.5%. If production inefficiencies or program charges persist — a recurring issue for Boeing — margins could deteriorate further even as revenues recover.
Source: 10-Q Income Statement
With a debt-to-equity ratio of 26.5x and total liabilities of $158.8B against equity of only $6.0B, Boeing's balance sheet remains highly leveraged. Any revenue shortfall or unexpected charges could quickly erode the newly positive equity position.
Source: 10-Q Balance Sheet
Despite revenue growth, Boeing generated -$179M in operating cash flow in Q1 2026. While dramatically improved from -$1.6B a year ago, the company is still consuming cash from operations, limiting financial flexibility and increasing reliance on external financing.
Source: 10-Q Cash Flow Statement
R&D expense rose 7.0% YoY to $903M, reflecting continued investment in next-generation programs. While necessary for long-term competitiveness, this spending adds near-term cost pressure at a time when margins are already thin.
Source: 10-Q Income Statement
Boeing's current ratio stands at 1.18x, meaning current assets only modestly exceed current liabilities of $105.5B. This leaves limited liquidity buffer if near-term obligations accelerate or revenues disappoint, particularly given the negative operating cash flow.
Source: 10-Q Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 22.22 $B | 19.50 $B | +13.96% |
Cost of Revenue $B | 19.67 $B | 17.08 $B | +15.18% |
Gross Profit $B | 2.55 $B | 2.42 $B | +5.34% |
Operating Income $M | 448.00 $M | 461.00 $M | -2.82% |
Net Income $M | -4.00 $M | -37.00 $M | +89.19% |
EPS (Basic) $ | -0.11 $ | -0.16 $ | +31.25% |
EPS (Diluted) $ | -0.11 $ | -0.16 $ | +31.25% |
R&D Expense $M | 903.00 $M | 844.00 $M | +6.99% |
Answers draw on this SEC filing and the data on this page
In Q2 FY2026, Boeing increased revenue 8.0% year over year to $24.6B and returned to positive operating income of $156M, but remained unprofitable with a $444M net loss as gross margin compressed and Commercial Airplanes and Defense, Space & Security still faced program execution pressure.
Boeing returned to profitability in FY2025 with net income of $2.24B and revenue surging 34.5% to $89.5B, reversing the prior year's massive $11.8B net loss, though the balance sheet remains highly leveraged with $53.8B in long-term debt and a debt-to-equity ratio of nearly 30x.
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