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Buy, Hold or Sell Boeing Stock? Key Insights Ahead of Q2 Earnings
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Key Takeaways
Boeing is expected to post higher revenues, supported by stronger commercial services and delivery momentum.
BA increased commercial aircraft deliveries 14%, while defense shipments declined 2.8% in the quarter.
Boeing improved 737 and 787 production efficiency, but 787 supply constraints delayed some deliveries.
The Boeing Company (BA - Free Report) is expected to report second-quarter 2026 results on July 28, before market open.
The Zacks Consensus Estimate for earnings is pegged at a loss of 34 cents per share. The Zacks Consensus Estimate for revenues is pinned at $24.05 billion, indicating growth of 5.73% from the year-ago reported figure.
Image Source: Zacks Investment Research
BA’s Earnings Surprise History
The company beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 77.71%.
Image Source: Zacks Investment Research
What Our Quantitative Model Predicts
Our proven model does not predict an earnings beat for Boeing this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is -17.41%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some stocks in the same industry that have the combination of factors indicating an earnings beat are General Dynamics (GD - Free Report) and L3Harris Technologies (LHX - Free Report) . General Dynamics and L3Harris have an Earnings ESP of +1.61% and +2.09%, respectively. GD has a Zacks Rank #2 and LHX carries a Zacks Rank #3 at present.
Factors That Might Have Impacted BA’s Q2 Performance
Rising international air travel has increased aircraft utilization, driving higher demand for commercial jet maintenance, repairs, and related services, which likely supported sales volumes for Boeing’s commercial services. Growing defense needs must have boosted government spending on aftermarket aircraft repair, support, and upgrades, lifting demand for government jet services. Stronger commercial services revenues, combined with the typically higher margins of government services, are expected to have supported both top-line growth and operating earnings at Boeing Global Services in the first quarter.
During the first quarter, Boeing successfully stabilized 737 production at 42 aircraft per month and remains on track to increase production to 47 aircraft per month. Management noted that both Boeing and its suppliers are prepared for this production increase and highlighted meaningful reductions in factory rework hours, indicating improving manufacturing efficiency.
The company reported nearly a 20% reduction in final assembly rework hours for the 737 and over a 25% improvement for the 787 production line compared with the prior year. In addition, Spirit AeroSystems' manufacturing performance has improved following its reintegration into Boeing, supporting higher-quality components entering final assembly. Lower rework is reducing manufacturing costs, improving delivery predictability, and is expected to have supported a gradual improvement in margins during the second quarter.
In the quarter under review, Boeing’s commercial aircraft deliveries grew 14% year over year, reflecting continued recovery in production and delivery momentum. However, on the defense side, shipments decreased 2.8% from the prior-year period’s level.
The 787 program continues to face supply-chain bottlenecks, particularly related to engine deliveries and premium seat certifications. These constraints have pushed deliveries of completed aircraft into the second quarter, making the timing of supplier recoveries and regulatory approvals critical to Boeing's quarterly revenue and cash flow. Management remains confident these issues are temporary and has reaffirmed its full-year delivery guidance. However, any additional supplier disruptions or certification delays could postpone deliveries and weigh on the expected sequential improvement in second-quarter financial results.
BA Stock Price Performance
In the past month, the stock has lost 5.4% compared with the industry’s decline of 4%.
Image Source: Zacks Investment Research
BA Stock Trading at a Discount
Boeing is currently trading at a discount compared to its industry on a forward 12-month P/S basis.
Image Source: Zacks Investment Research
General Dynamics and L3Harris are also trading at a discount compared to their industry on a forward 12-month P/S basis.
BA Stock’s Poor ROIC
The image below shows that BA stock’s trailing 12-month return on invested capital (ROIC) not only lags the peer group’s average return but also reflects a negative figure. This suggests that the company's investments are not yielding sufficient returns to cover its expenses.
Image Source: Zacks Investment Research
Investment Thesis
The steadily rising demand for commercial air travel and the replacement of aging fleets are driving the need for new jets and aftermarket services. The outlook for the aerospace giant’s defense and space segment remains positive, supported by its position as one of the world’s largest defense contractors and a key integrator for the International Space Station. Notably, the current U.S. administration’s focus on strengthening national defense and space capabilities is expected to serve as a growth catalyst for Boeing.
Years of operational challenges forced Boeing to take on significant debt, leaving the company with approximately $47.2 billion of debt at the end of the first quarter despite repaying $6.9 billion during the quarter. While Boeing is actively reducing its debt, the elevated leverage continues to constrain financial flexibility.
End Note
Boeing is expected to have benefited from continued growth in international air travel and healthy demand for commercial aircraft. However, ongoing supply-chain constraints are likely to have tempered these positives during the quarter.
Current investors may stay invested, given its sales growth and attractive valuation. However, new investors may wait and look for a better entry point, considering the stock’s poor ROIC and consistent supply-chain issues.
View the Zacks #1 Rank List
Image: Bigstock
Buy, Hold or Sell Boeing Stock? Key Insights Ahead of Q2 Earnings
Key Takeaways
The Boeing Company (BA - Free Report) is expected to report second-quarter 2026 results on July 28, before market open.
The Zacks Consensus Estimate for earnings is pegged at a loss of 34 cents per share. The Zacks Consensus Estimate for revenues is pinned at $24.05 billion, indicating growth of 5.73% from the year-ago reported figure.
Image Source: Zacks Investment Research
BA’s Earnings Surprise History
The company beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 77.71%.
Image Source: Zacks Investment Research
What Our Quantitative Model Predicts
Our proven model does not predict an earnings beat for Boeing this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is -17.41%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Boeing carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
Stocks Worth a Look
Some stocks in the same industry that have the combination of factors indicating an earnings beat are General Dynamics (GD - Free Report) and L3Harris Technologies (LHX - Free Report) . General Dynamics and L3Harris have an Earnings ESP of +1.61% and +2.09%, respectively. GD has a Zacks Rank #2 and LHX carries a Zacks Rank #3 at present.
Factors That Might Have Impacted BA’s Q2 Performance
Rising international air travel has increased aircraft utilization, driving higher demand for commercial jet maintenance, repairs, and related services, which likely supported sales volumes for Boeing’s commercial services. Growing defense needs must have boosted government spending on aftermarket aircraft repair, support, and upgrades, lifting demand for government jet services. Stronger commercial services revenues, combined with the typically higher margins of government services, are expected to have supported both top-line growth and operating earnings at Boeing Global Services in the first quarter.
During the first quarter, Boeing successfully stabilized 737 production at 42 aircraft per month and remains on track to increase production to 47 aircraft per month. Management noted that both Boeing and its suppliers are prepared for this production increase and highlighted meaningful reductions in factory rework hours, indicating improving manufacturing efficiency.
The company reported nearly a 20% reduction in final assembly rework hours for the 737 and over a 25% improvement for the 787 production line compared with the prior year. In addition, Spirit AeroSystems' manufacturing performance has improved following its reintegration into Boeing, supporting higher-quality components entering final assembly. Lower rework is reducing manufacturing costs, improving delivery predictability, and is expected to have supported a gradual improvement in margins during the second quarter.
In the quarter under review, Boeing’s commercial aircraft deliveries grew 14% year over year, reflecting continued recovery in production and delivery momentum. However, on the defense side, shipments decreased 2.8% from the prior-year period’s level.
The 787 program continues to face supply-chain bottlenecks, particularly related to engine deliveries and premium seat certifications. These constraints have pushed deliveries of completed aircraft into the second quarter, making the timing of supplier recoveries and regulatory approvals critical to Boeing's quarterly revenue and cash flow. Management remains confident these issues are temporary and has reaffirmed its full-year delivery guidance. However, any additional supplier disruptions or certification delays could postpone deliveries and weigh on the expected sequential improvement in second-quarter financial results.
BA Stock Price Performance
In the past month, the stock has lost 5.4% compared with the industry’s decline of 4%.
Image Source: Zacks Investment Research
BA Stock Trading at a Discount
Boeing is currently trading at a discount compared to its industry on a forward 12-month P/S basis.
Image Source: Zacks Investment Research
General Dynamics and L3Harris are also trading at a discount compared to their industry on a forward 12-month P/S basis.
BA Stock’s Poor ROIC
The image below shows that BA stock’s trailing 12-month return on invested capital (ROIC) not only lags the peer group’s average return but also reflects a negative figure. This suggests that the company's investments are not yielding sufficient returns to cover its expenses.
Image Source: Zacks Investment Research
Investment Thesis
The steadily rising demand for commercial air travel and the replacement of aging fleets are driving the need for new jets and aftermarket services. The outlook for the aerospace giant’s defense and space segment remains positive, supported by its position as one of the world’s largest defense contractors and a key integrator for the International Space Station. Notably, the current U.S. administration’s focus on strengthening national defense and space capabilities is expected to serve as a growth catalyst for Boeing.
Years of operational challenges forced Boeing to take on significant debt, leaving the company with approximately $47.2 billion of debt at the end of the first quarter despite repaying $6.9 billion during the quarter. While Boeing is actively reducing its debt, the elevated leverage continues to constrain financial flexibility.
End Note
Boeing is expected to have benefited from continued growth in international air travel and healthy demand for commercial aircraft. However, ongoing supply-chain constraints are likely to have tempered these positives during the quarter.
Current investors may stay invested, given its sales growth and attractive valuation. However, new investors may wait and look for a better entry point, considering the stock’s poor ROIC and consistent supply-chain issues.