Boeing Shares Sink 10.7% on 737 Delay, Weak Cash Flow Outlook

Boeing shares fell 10.7% on Tuesday, Oct. 27, after the planemaker said it will reach its 737 production targets later than planned and gave a free cash flow outlook well below Wall Street's forecast. The stock closed at $168.18, down from Monday's close of $188.31, according to Yahoo Finance daily data.

It was Boeing's steepest one-day percentage decline since April 1, 2020, and its lowest close in more than a year, Yahoo Finance data show. The stock touched $167.41 during the session. The broader market rose: the S&P 500 gained 0.6% to 7,722.60, and the Dow Jones Industrial Average ended almost flat at 52,377.57.

Why did Boeing stock fall today?

Investors reacted to slower production and weaker cash flow, Reuters reported. Boeing now expects to reach a 737 rate of 47 jets a month in early 2027. As recently as May, executives had said they would hit that pace this summer. Wing production remains a major constraint, according to Reuters.

Chief Financial Officer Jay Malave said Boeing will fall short of its target of 500 deliveries this year, Reuters reported. Boeing also pushed back its free cash flow growth by a year. It expects $3 billion of free cash flow in 2027, against the analyst consensus of $5.5 billion, according to LSEG data cited by Reuters.

Chief Executive Kelly Ortberg said Boeing still plans to reach 52 jets a month in the second half of 2027. "We're going to be smart about this, stay disciplined, and the outlook is there," he said on a call with analysts, according to Reuters.

What did Boeing report for the third quarter?

Revenue rose 4% to $24.2 billion, Boeing said in its earnings release, filed with the Securities and Exchange Commission on Tuesday. The core loss per share, a non-GAAP measure, was 34 cents. Analysts had expected a loss of 21 cents, Reuters reported, citing LSEG.

Measure (3Q26)	Result	Year earlier
Revenue	$24.2 billion	$23.3 billion
GAAP loss per share	$0.26	$7.14
Core loss per share	$0.34	$7.47
Operating cash flow	$1.5 billion	$1.1 billion
Free cash flow	$464 million	$238 million
Commercial deliveries	161	160

Source: Boeing third-quarter release, Exhibit 99.1 to its Oct. 27 Form 8-K.

The Commercial Airplanes unit lost $697 million on revenue of $10.7 billion, an operating margin of minus 6.5%. Boeing said that reflected a less favorable delivery mix, higher projected costs tied to future production rate adjustments and higher supply chain costs. A year earlier, the margin was minus 48.3% because of a charge on the 777X program.

Defense, Space and Security revenue rose 15% to $7.9 billion, with a 6.2% margin that included a $252 million gain on the sale of HRL Laboratories. Global Services earned $1.0 billion on revenue of $5.6 billion.

Operating cash flow included about $0.7 billion of Justice Department settlement payments, Boeing said. Total backlog grew to a record $745 billion, including more than 6,300 commercial airplanes. Boeing ended the quarter with $20.7 billion of cash and marketable securities and $45.9 billion of debt.

What is next for the 737 and 777X?

Boeing said the 737-7 won amended FAA type certification in the quarter and the 737-10 followed in October. The 787 is steady at eight a month, and the 777X remains on track for first delivery in 2027, the company said.

For more third-quarter results, see our reports on HSBC's quarterly revenue miss and Verizon's raised outlook, plus the rest of our companies section and markets coverage.