Boeing Co.’s (NYSE:BA) second-quarter results on Tuesday revealed a wider-than-anticipated loss, despite strong revenue driven by a significant jump in commercial aircraft deliveries and an expanding order backlog.
This mixed financial performance underscores the aerospace giant’s ongoing efforts to stabilize operations amid persistent industry challenges.
Despite the quarterly earnings per share (EPS) miss, Wall Street analysts largely maintain a bullish outlook on Boeing. They cite solid delivery momentum, a strong backlog, and improving cash flow as key reasons for optimism.
Goldman Sachs analyst Noah Poponak, for instance, reiterated a Buy rating and modestly raised his price forecast to $260 from $257, citing stronger-than-expected commercial deliveries and cash flow.
Similarly, Bank of America Securities (BofA) analyst Ronald J. Epstein maintained a Buy rating with a reaffirmed price forecast of $260, buoyed by robust jet demand and improving execution.
Boeing reported second-quarter revenue of $22.75 billion, topping analyst expectations thanks to a 63% jump in commercial aircraft deliveries. However, the company posted an adjusted loss of $1.24 per share, wider than the $0.94 loss forecast, partly due to a $445 million charge tied to a Department of Justice settlement. Free cash outflow came in at $200 million, beating consensus estimates by over $1 billion.
Commercial airplane revenue surged 81% year-over-year to $10.87 billion. Boeing delivered 150 commercial jets during the quarter, helping backlog swell to $619 billion, including more than 5,900 aircraft orders worth $522 billion. The 737 program remained steady at 38 units per month, while the 787 ramped up to 7 per month.
Analyst Take: Cautious Optimism With Focus On Execution
Goldman’s Poponak views Boeing’s second-quarter results as a broad beat, driven by stronger Commercial Aircraft deliveries, stabilized Defense margins, and solid Services performance. Free cash flow exceeded consensus by over $1 billion, prompting an upward revision to full-year guidance. While 737 and 787 production rates remain at 38 and 7 per month, respectively, demand supports further increases.
Poponak believes Boeing must still improve operational execution to restore normalized margins and regain investor confidence. If achieved, the stock offers substantial upside. He maintains a Buy rating with a revised $260 price target, based on a 3.0% FCF yield on 2026E. Key risks include supply chain constraints, air traffic growth uncertainty, and defense contract execution.
BofA’s Epstein maintains a Buy rating on Boeing after the second-quarter results, noting a strong free cash flow beat despite an EPS miss caused by a $445 million non-operating charge. He points to the ($200 million) FCF, well ahead of the ($1.8 billion) estimate, as a sign of improving execution through inventory drawdown and working capital gains.
Boeing beat free cash flow expectations, gaining altitude with strong operational performance, and plans to request a production rate increase for its 737 aircraft. This reflects confidence in the rising demand for commercial jets.
While Commercial and Defense margins came in below expectations, Epstein sees encouraging signals in Boeing’s plan to raise 737 MAX production to 42/month and a robust $522 billion backlog.
The price forecast of $260 is based on $9/share normalized FCF and a 1.2x S&P 500 multiple. He cites strong jet demand and the F-47 ramp. Risks include the execution of new programs, labor constraints, and macro shocks to aviation demand.
Boeing said it remains focused on restoring trust, stabilizing operations, and executing on production targets amid a dynamic global backdrop. The company reaffirmed plans to increase 737 output later this year and emphasized continued progress on safety, quality, and long-term recovery.
Other analysts have also provided updates on the stock. RBC Capital’s Ken Herbert reiterated an Outperform rating, maintaining his price forecast at $250. UBS analyst Gavin Parsons maintained a Buy rating and increased the price forecast from $255 to $280.
JP Morgan’s Seth Seifman reaffirmed an Overweight rating, lifting the forecast from $230 to $251. Susquehanna’s Charles Minervino held a Positive rating while increasing the forecast from $265 to $270. Lastly, Barclays analyst David Strauss also maintained an Overweight stance and raised the price forecast from $210 to $255.
Price Action: BA shares are trading higher by 0.81% at $227.92 on Wednesday’s last check.
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