Boeing Co. (NYSE:BA) stock fell Tuesday after the aerospace giant reported third-quarter 2026 results that topped Wall Street's revenue expectations but missed adjusted earnings estimates. Investors weighed a wider-than-expected adjusted loss against improved operating margins, stronger cash flow and a record backlog.

Revenue Tops Estimates, Adjusted Loss Widens

Boeing reported a core non-GAAP loss of 34 cents per share, compared with analysts' expectations for a loss of 21 cents per share. Revenue rose 4% from a year earlier to $24.188 billion, exceeding the consensus estimate of $23.840 billion.

The company posted a GAAP diluted loss of 26 cents per share. GAAP operating earnings totaled $354 million, compared with an operating loss of $4.781 billion a year earlier. Operating margin improved to 1.5% from negative 20.5%. Core operating earnings reached $204 million, representing a 0.8% margin. The improvement reflected stronger performance across business segments, and the year-earlier quarter also included a significant charge related to the 777X program.

Commercial Airplanes Revenue Declines

Boeing's Commercial Airplanes revenue fell 3% to $10.720 billion, while the segment reported a negative 6.5% operating margin. The company attributed the results to a less favorable aircraft delivery mix, higher projected costs associated with future production-rate adjustments and increased supply-chain cost estimates.

The segment delivered 161 aircraft during the quarter and recorded 300 net orders. Boeing continued working toward a stabilized production rate of 47 aircraft per month for its 737 program, while 787 production remained at eight aircraft per month. The company maintained its target for the first 777X delivery in 2027. Commercial Airplanes ended the quarter with a record backlog of $612 billion.

Defense and Global Services Post Revenue Growth

Boeing's Defense, Space & Security revenue increased 15% to $7.935 billion, with operating margin rising to 6.2% from 1.7% a year earlier. The results included a $252 million gain from the sale of HRL Laboratories. The defense business also secured the F/A-XX fighter selection and finished the quarter with a record $101 billion backlog.

Global Services revenue rose 4% to $5.574 billion, with an operating margin of 18.3%. The services segment reported a backlog of $33 billion.

President and CEO Kelly Ortberg said in a live CNBC interview that financial uncertainty across the company's portfolio is narrowing and that the company expects stronger growth from its defense business.

Positive Free Cash Flow, Record Backlog

Boeing generated $1.496 billion in operating cash flow and $464 million in free cash flow during the quarter. The company said cash flow reflected working-capital timing, partially offset by approximately $700 million in payments related to its Department of Justice settlement.

Cash and marketable securities totaled $20.7 billion at quarter-end, while consolidated debt stood at $45.9 billion. Boeing's total backlog reached a record $745 billion, including orders for more than 6,300 commercial aircraft.

"Recent milestones, including certification of the 737-7 and 737-10 and selection to design and build the Navy's sixth-generation fighter aircraft, are important steps as we continue building on our progress," Ortberg said.

BA Stock Price Action: Boeing shares fell 2.17% to $184.04 at the time of publication Tuesday.