v3.26.1
Segment and Revenue Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment and Revenue Information Segment and Revenue Information
We operate in three reportable segments: BCA, BDS, and BGS. All other activities fall within Unallocated items, eliminations and other. See page 7 for the Summary of Business Segment Data, which is an integral part of this note.
BCA develops, produces and markets commercial jet aircraft principally to the commercial airline industry worldwide. Revenue on commercial aircraft contracts is recognized at the point in time when an aircraft is completed and accepted by the customer.
BDS engages in the research, development, production and modification of the following products and related services: manned and unmanned military aircraft and weapons systems, surveillance and engagement, strategic defense and intelligence systems, satellite systems and space exploration. BDS revenue is generally recognized over the contract term (over time) as costs are incurred.
BGS provides parts, maintenance, modifications, logistics support, training, data analytics and information-based services to commercial and government customers worldwide. BGS segment revenue and costs include certain products and services provided to other segments. Revenue on commercial spare parts contracts is recognized at the point in time when a spare part is delivered to the customer. Revenue on other contracts is generally recognized over the contract term (over time) as costs are incurred.
The primary profitability measurement used by our chief operating decision maker to review segment operating results is Segment operating earnings. The following table reconciles segment Revenues to Segment operating earnings:
BCABDSBGS
For the six months ended June 30,
202620252026202520262025
Revenues$20,954 $19,021 $15,082 $12,915 $10,714 $10,344 
Less:
Research and development expense, net1,200 1,092 366 420 48 59 
Other segment items (1)
20,639 19,023 14,498 12,230 8,727 8,293 
Segment operating (loss)/earnings($885)($1,094)$218 $265 $1,939 $1,992 
For the three months ended June 30,
202620252026202520262025
Revenues$11,751 $10,874 $7,483 $6,617 $5,344 $5,281 
Less:
Research and development expense, net597 558 192 221 26 30 
Other segment items(1)
11,476 10,873 7,306 6,286 4,350 4,202 
Segment operating (loss)/earnings($322)($557)($15)$110 $968 $1,049 
(1)    Primarily includes costs of products and services and general and administrative expenses.
The following tables present BCA, BDS and BGS revenues from contracts with customers disaggregated in a number of ways, such as geographic location, contract type and the method of revenue recognition. We believe these best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors.
BCA revenues by customer location consisted of the following:
(Dollars in millions)Six months ended June 30Three months ended June 30
2026202520262025
Revenue from contracts with customers:
Europe$5,107 $1,498 $2,568 $990 
Asia4,464 5,379 2,459 2,422 
Middle East2,906 1,760 2,140 1,277 
Other non-U.S.1,381 1,188 938 799 
Total non-U.S. revenues13,858 9,825 8,105 5,488 
United States6,890 9,144 3,483 5,361 
Estimated potential concessions and other considerations to 737 MAX customers80 5 80 5 
Total revenues from contracts with customers20,828 18,974 11,668 10,854 
Intersegment revenues eliminated on consolidation126 47 83 20 
Total segment revenues$20,954 $19,021 $11,751 $10,874 
Revenue recognized on fixed-price contracts100 %100 %100 %100 %
Revenue recognized at a point in time100 %100 %100 %100 %
BDS revenues on contracts with customers, based on the customer's location, consisted of the following:
(Dollars in millions)Six months ended June 30Three months ended June 30
2026202520262025
Revenue from contracts with customers:
U.S. customers$12,095 $10,160 $5,983 $5,227 
Non-U.S. customers (1)
2,987 2,755 1,500 1,390 
Total segment revenue from contracts with customers$15,082 $12,915 $7,483 $6,617 
Revenue recognized over time100 %100 %100 %100 %
Revenue recognized on fixed-price contracts60 %58 %58 %58 %
Revenue from the U.S. government (1)
93 %92 %92 %92 %
(1)Includes revenues earned from Foreign Military Sales through the U.S. government (FMS).
BGS revenues consisted of the following:
(Dollars in millions)Six months ended June 30Three months ended June 30
2026202520262025
Revenue from contracts with customers:
Commercial$6,033 $5,967 $3,001 $2,996 
Government4,471 4,168 2,243 2,172 
Total revenues from contracts with customers10,504 10,135 5,244 5,168 
Intersegment revenues eliminated on consolidation210 209 100 113 
Total segment revenues$10,714 $10,344 $5,344 $5,281 
Revenue recognized at a point in time55 %53 %55 %52 %
Revenue recognized on fixed-price contracts86 %86 %86 %86 %
Revenue from the U.S. government (1)
31 %30 %31 %31 %
(1)Includes revenues earned from FMS.
Earnings in Equity Method Investments
During the six and three months ended June 30, 2026, our share of income from equity method investments was $32 and $32, compared to $30 and $34 during the same periods in 2025. Income from equity method investments in 2026 and 2025 was primarily driven by investments held in Unallocated items, eliminations, and other and at our BDS segment.
Backlog
Our total backlog includes contracts that we and our customers are committed to perform. The value in backlog represents the estimated transaction prices on performance obligations to our customers for which work remains to be performed. Backlog is converted into revenue, primarily based on the cost incurred or at delivery and acceptance of products, depending on the applicable revenue recognition model.
Our backlog at June 30, 2026 was $715,261. We expect approximately 21% to be converted to revenue through 2027 and approximately 62% through 2030, with the remainder thereafter. There is significant uncertainty regarding the timing of when backlog will convert into revenue. We may experience reductions to backlog and/or significant order cancellations due to various factors including delivery delays, production disruptions and delays to entry into service of the 777X, 737-7 and/or 737-10.
Unallocated Items, Eliminations and Other
Unallocated items, eliminations and other include common internal services that support Boeing’s global business operations and eliminations of certain sales between segments. We generally allocate costs to business segments based on the U.S. Government Cost Accounting Standards (CAS). Components of Unallocated items, eliminations and other (expense)/income are shown in the following table.
Six months ended June 30Three months ended June 30
2026202520262025
Share-based plans($52)($51)$3 ($21)
Deferred compensation(107)(80)(124)(85)
Amortization of previously capitalized interest(45)(42)(23)(21)
Research and development expense, net(210)(183)(106)(101)
Eliminations and other unallocated items(564)(1,041)(380)(807)
Unallocated items, eliminations and other
($978)($1,397)($630)($1,035)
Pension and Other Postretirement Benefit Expense
Pension costs are allocated to BDS and BGS businesses supporting government customers using CAS, which employ different actuarial assumptions and accounting conventions than GAAP. These costs are allocable to government contracts. Other postretirement benefit costs are allocated to business segments based on CAS, which is generally based on benefits paid. FAS/CAS service cost adjustment represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. These expenses are included in Other income, net. Components of FAS/CAS service cost adjustment are shown in the following table:
Six months ended June 30Three months ended June 30
2026202520262025
Pension FAS/CAS service cost adjustment$185 $390 $92 $197 
Postretirement FAS/CAS service cost adjustment125 129 63 60 
FAS/CAS service cost adjustment$310 $519 $155 $257 
Assets
Effective June 30, 2026, we revised our presentation of segment assets to exclude investments in wholly-owned subsidiaries. Prior period amounts have been adjusted to conform to the current period presentation. Segment assets are summarized in the table below:
June 30
2026		December 31
2025
Commercial Airplanes$96,493 $91,878 
Defense, Space & Security17,379 16,604 
Global Services16,966 16,871 
Unallocated items, eliminations and other35,032 42,882 
Total$165,870 $168,235 
Assets included in Unallocated items, eliminations and other primarily consist of Cash and cash equivalents, Short-term and other investments, tax assets, capitalized interest and assets managed centrally on behalf of the three principal business segments and intercompany eliminations.
Capital Expenditures
Six months ended June 30Three months ended June 30
2026202520262025
Commercial Airplanes$402 $243 $227 $137 
Defense, Space & Security204 113 122 59 
Global Services52 69 28 43 
Unallocated items, eliminations and other1,350 676 356 188 
Total$2,008 $1,101 $733 $427 
Capital expenditures for Unallocated items, eliminations and other relate primarily to assets managed centrally on behalf of the three principal business segments.
Depreciation and Amortization
Six months ended June 30Three months ended June 30
2026202520262025
Commercial Airplanes$367 $212 $177 $111 
Defense, Space & Security
116 103 56 53 
Global Services139 146 70 73 
Centrally Managed Assets (1)
547 465 293 223 
Total$1,169 $926 $596 $460 
(1)Amounts shown in the table represent depreciation and amortization expense recorded by the individual business segments. Depreciation and amortization for centrally managed assets are allocated to business segments based on usage and occupancy. During the six months ended June 30, 2026, $426 was allocated to the primary business segments, of which $238, $149, and $39 was allocated to BCA, BDS and BGS, respectively. During the six months ended June 30, 2025, $351 was allocated to the primary business segments, of which $172, $140, and $39 was allocated to BCA, BDS and BGS, respectively. During the three months ended June 30, 2026, $238 was allocated to the primary business segments, of which $133, $83, and $22 was allocated to BCA, BDS and BGS, respectively. During the three months ended June 30, 2025, $182 was allocated to the primary business segments, of which $90, $72, and $20 was allocated to BCA, BDS and BGS, respectively.