A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
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.
Revenue
$24.56B
+7.96% YoY
EPS (Diluted)
-$0.67
+27.17% YoY
Gross Margin
9.8%
-0.9 pts YoY
Operating Income
$156M
+188.64% YoY
Boeing (BA) reported Q2 FY2026 revenue of $24.56B, up 8.0% year over year. The company posted a net loss of $444M, with diluted EPS of -$0.67. Gross margin was 9.8%. Operating income was $156M. The company returned $86M of dividends to shareholders. BA's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Boeing’s Q2 FY2026 revenue and operating income improved, but it still posted a $444M net loss, faced margin pressure, and generated negative year-to-date free cash flow after capital expenditures.
Last 4 quarters: 2 beats, 2 misses
Q2 FY2026 revenue rose $1.8B year over year to $24.6B. Commercial Airplanes revenue increased $877M to $11.8B, primarily from higher 737 deliveries, while Defense, Space & Security revenue increased $866M to $7.5B, helped by proprietary and weapons programs, KC-46 volume, and the Spirit defense-business acquisition.
Source: 10-Q Item 2 MD&A, p.35, p.41, p.44
GAAP operating income improved to $156M in Q2 FY2026 from a $176M operating loss a year earlier. Management attributed much of the $332M improvement to a $405M reduction in losses from unallocated items and a $235M smaller Commercial Airplanes loss; the unallocated improvement included the absence of a $445M Department of Justice agreement charge recorded in Q2 2025.
Source: 10-Q Item 2 MD&A, p.36
Commercial Airplanes reported a Q2 FY2026 operating loss of $322M, improved from a $557M loss in Q2 FY2025, on higher revenue and a lower 767 reach-forward loss, partly offset by higher R&D. Deliveries increased to 171 aircraft from 150, including 129 737s versus 104 in the prior-year quarter.
Source: 10-Q Item 2 MD&A, p.40-p.42
Defense, Space & Security revenue grew to $7.5B in Q2 FY2026, but the segment posted a $15M operating loss versus $110M of operating income a year earlier. Management cited $186M of higher net unfavorable cumulative catch-up adjustments and higher G&A expense, with the 2026 VC-25B reach-forward loss of $280M a principal driver.
Source: 10-Q Item 2 MD&A, p.44-p.45
For the six months ended June 30, 2026, operating cash flow was positive $1.2B versus negative $1.4B in the prior-year period, principally from favorable working-capital changes. Boeing used $8.5B in financing cash flow, primarily due to $7.8B higher net debt repayments, reducing total debt to $45.9B from $54.1B at December 31, 2025.
Source: 10-Q Item 2 MD&A, p.47
Boeing recorded a $444M net loss in Q2 FY2026 despite revenue growth, and its net margin was negative 1.8%. This indicates that the operating recovery had not yet translated into bottom-line profitability, leaving results vulnerable to additional cost pressure or program charges.
Source: 10-Q Income Statement (XBRL)
Debt-to-equity was 26.2x at the end of Q2 FY2026, reflecting $45.6B of long-term debt and only $6.1B of stockholders' equity. Although long-term debt declined 14.2% year over year, the capital structure remains highly leveraged.
Source: 10-Q Balance Sheet (XBRL)
The current ratio was 1.14x, with $124.6B of current assets against $109.6B of current liabilities. This means current assets exceeded short-term obligations, but the margin of coverage was relatively narrow for a company with a large, complex production base.
Source: 10-Q Balance Sheet (XBRL)
Q2 FY2026 gross profit declined 0.9% to $2.4B even as revenue rose 8.0%, because cost of revenue increased 9.0% to $22.1B. Gross margin fell to 9.8% from 10.7%, showing that incremental sales did not yet produce improved gross profitability.
Source: 10-Q Income Statement (XBRL)
Six-month operating cash flow improved to positive $1.2B, but free cash flow was still negative $815M after $2.0B of capital expenditures. Investing cash inflow of $3.6B was driven by net investment proceeds, while financing outflows totaled $8.5B, so cash generation remains sensitive to capital spending, investment activity, and debt repayments.
Source: 10-Q Item 2 MD&A, p.47
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
Boeing (BA) is next expected to report on , when the following quarter's results and any updated outlook will be available.
See the BA earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $24.56B | $22.75B | +7.96% |
Cost of Revenue | $22.15B | $20.31B | +9.02% |
Gross Profit | $2.41B | $2.44B | -0.86% |
Operating Income | $156M | -$176M | +188.64% |
Net Income | -$444M | -$611M | +27.33% |
EPS (Basic) | -$0.67 | -$0.92 | +27.17% |
EPS (Diluted) | -$0.67 | -$0.92 | +27.17% |
R&D Expense | $921M | $910M | +1.21% |
Boeing grew Q2 FY2026 revenue 8.0% year over year to $24.6B and improved from a $176M operating loss to $156M of operating income. However, it still reported a $444M net loss, while gross margin declined to 9.8% from 10.7%. Source: 10-Q Item 2 MD&A, p.35; 10-Q Income Statement (XBRL).
Revenue rose by $1.8B to $24.6B. Commercial Airplanes revenue increased $877M to $11.8B, mainly on higher 737 deliveries, while Defense, Space & Security revenue increased $866M to $7.5B. Source: 10-Q Item 2 MD&A, p.35, p.41, p.44.
GAAP operating income improved by $332M year over year to $156M, driven largely by a $405M reduction in unallocated losses and a $235M reduction in Commercial Airplanes’ operating loss. The comparison also benefited from the absence of a $445M Department of Justice agreement charge recorded in Q2 FY2025. Source: 10-Q Item 2 MD&A, p.36.
The filing provides cash flow on a six-month year-to-date basis rather than for Q2 FY2026 alone. Operating cash flow was positive $1.2B and capital expenditures were $2.0B, implying negative free cash flow of $815M for the six months ended June 30, 2026. Source: 10-Q Item 2 MD&A, p.47.
Based on the reported financial data, Boeing remained loss-making, with a $444M Q2 FY2026 net loss and a negative 1.8% net margin. Its 26.2x debt-to-equity ratio and 1.14x current ratio also point to meaningful leverage and a relatively narrow short-term asset coverage buffer. Source: 10-Q Income Statement and Balance Sheet (XBRL).
Boeing (BA) is next expected to report earnings on Oct 27, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
Expected release date, analyst estimates & what to watch
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.
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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