Boeing Stock Falls Despite Record Revenue Growth

Boeing's stock price has been falling despite the company's revenue growth outpacing its peers over the past twelve months. In fact, Boeing grew revenue by 24.8%, while GE Aerospace, one of its closest competitors, grew revenue by 21.7%.

The market is paying GE Aerospace and RTX for their profit on each sale, whereas Boeing's operating margin has been negative 5.4%. This means that despite delivering a record number of airplanes in the June quarter, Boeing still lost money on operations.

Boeing's CFO explains that program cash margins on the 737 and 787 sit only slightly above breakeven, held down largely by a pricing drag that fades as deliveries climb and better-priced backlog comes through. The company is guiding free cash flow to $1 billion to $3 billion in 2026, but missing this target could indicate that the pricing drag is still eating into volume.