v3.26.3
Segment and Revenue Information
 9 Months Ended
Sep. 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/(loss). The following table reconciles segment Revenues to Segment operating earnings/(loss):
BCABDSBGS
For the nine months ended September 30,
202620252026202520262025
Revenues$31,674 $30,115 $23,017 $19,817 $16,288 $15,714 
Less:
Research and development expense, net1,700 1,657 563 618 76 91 
Other segment items (1)
31,556 34,905 21,744 18,820 13,254 12,693 
Segment operating (loss)/earnings($1,582)($6,447)$710 $379 $2,958 $2,930 
For the three months ended September 30,
202620252026202520262025
Revenues$10,720 $11,094 $7,935 $6,902 $5,574 $5,370 
Less:
Research and development expense, net500 565 197 198 28 32 
Other segment items(1)
10,917 15,882 7,246 6,590 4,527 4,400 
Segment operating (loss)/earnings($697)($5,353)$492 $114 $1,019 $938 
(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)Nine months ended September 30Three months ended September 30
2026202520262025
Revenue from contracts with customers:
Europe$7,791 $3,789 $2,684 $2,291 
Asia7,055 8,888 2,591 3,509 
Middle East4,149 3,026 1,243 1,266 
Other non-U.S.1,772 1,969 391 781 
Total non-U.S. revenues20,767 17,672 6,909 7,847 
United States10,585 12,326 3,695 3,182 
Estimated potential concessions and other considerations to 737 MAX customers80 5  
Total revenues from contracts with customers31,432 30,003 10,604 11,029 
Intersegment revenues eliminated on consolidation242 112 116 65 
Total segment revenues$31,674 $30,115 $10,720 $11,094 
Revenue recognized on fixed-price contracts100 %100 %100 %100 %
Revenue recognized at a point in time99 %100 %99 %100 %
BDS revenues on contracts with customers, based on the customer's location, consisted of the following:
(Dollars in millions)Nine months ended September 30Three months ended September 30
2026202520262025
Revenue from contracts with customers:
U.S. customers$18,402 $15,485 $6,307 $5,325 
Non-U.S. customers (1)
4,615 4,332 1,628 1,577 
Total segment revenue from contracts with customers$23,017 $19,817 $7,935 $6,902 
Revenue recognized over time100 %100 %100 %99 %
Revenue recognized on fixed-price contracts59 %57 %57 %56 %
Revenue from the U.S. government (1)
93 %91 %93 %91 %
(1)Includes revenues earned from Foreign Military Sales through the U.S. government (FMS).
BGS revenues consisted of the following:
(Dollars in millions)Nine months ended September 30Three months ended September 30
2026202520262025
Revenue from contracts with customers:
Commercial$9,133 $9,055 $3,100 $3,088 
Government6,850 6,337 2,379 2,169 
Total revenues from contracts with customers15,983 15,392 5,479 5,257 
Intersegment revenues eliminated on consolidation305 322 95 113 
Total segment revenues$16,288 $15,714 $5,574 $5,370 
Revenue recognized at a point in time55 %53 %54 %53 %
Revenue recognized on fixed-price contracts86 %86 %85 %85 %
Revenue from the U.S. government (1)
32 %30 %32 %30 %
(1)Includes revenues earned from FMS.
Earnings in Equity Method Investments
During the nine and three months ended September 30, 2026, our share of income/(loss) from equity method investments was $1 and ($31), compared to $47 and $17 during the same periods in 2025. Income/(loss) 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 September 30, 2026 was $745,431. We expect approximately 17% to be converted to revenue through 2027 and approximately 57% 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.
Nine months ended September 30Three months ended September 30
2026202520262025
Share-based plans($44)($40)$8 $11 
Deferred compensation(104)(150)3 (70)
Amortization of previously capitalized interest(69)(64)(24)(22)
Research and development expense, net(315)(285)(105)(102)
Eliminations and other unallocated items(1,056)(1,606)(492)(565)
Unallocated items, eliminations and other
($1,588)($2,145)($610)($748)
Eliminations and other unallocated items expense for the nine months ended September 30, 2026 and 2025, includes earnings charges of $0 and $445 related to agreements with the U.S. Department of Justice. For additional discussion, see Note 19.
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:
Nine months ended September 30Three months ended September 30
2026202520262025
Pension FAS/CAS service cost adjustment$277 $588 $92 $198 
Postretirement FAS/CAS service cost adjustment183 199 58 70 
FAS/CAS service cost adjustment$460 $787 $150 $268 
Assets
During the second quarter of 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:
September 30
2026		December 31
2025
Commercial Airplanes$99,372 $91,878 
Defense, Space & Security18,016 16,604 
Global Services17,058 16,871 
Unallocated items, eliminations and other36,293 42,882 
Total$170,739 $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
Nine months ended September 30Three months ended September 30
2026202520262025
Commercial Airplanes$641 $409 $239 $166 
Defense, Space & Security321 206 117 93 
Global Services82 122 30 53 
Unallocated items, eliminations and other1,996 1,249 646 573 
Total$3,040 $1,986 $1,032 $885 
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
Nine months ended September 30Three months ended September 30
2026202520262025
Commercial Airplanes$565 $323 $198 $111 
Defense, Space & Security
184 159 68 56 
Global Services212 225 73 79 
Centrally Managed Assets (1)
792 710 245 245 
Total$1,753 $1,417 $584 $491 
(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 nine months ended September 30, 2026, $619 was allocated to the primary business segments, of which $363, $200, and $56 was allocated to BCA, BDS and BGS, respectively. During the nine months ended September 30, 2025, $524 was allocated to the primary business segments, of which $252, $212, and $60 was allocated to BCA, BDS and BGS, respectively. During the three months ended September 30, 2026, $193 was allocated to the primary business segments, of which $125, $51, and $17 was allocated to BCA, BDS and BGS, respectively. During the three months ended September 30, 2025, $173 was allocated to the primary business segments, of which $80, $72, and $21 was allocated to BCA, BDS and BGS, respectively.