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Segment and Revenue Information
 3 Months Ended
Mar. 31, 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 6 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 three months ended March 31,
202620252026202520262025
Revenues$9,203 $8,147 $7,599 $6,298 $5,370 $5,063 
Less:
Research and development expense, net603 534 174 199 22 29 
Other segment items (1)
9,163 8,150 7,192 5,944 4,377 4,091 
Segment operating (loss)/earnings($563)($537)$233 $155 $971 $943 
(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)Three months ended March 31
20262025
Revenue from contracts with customers:
Europe$2,539 $508 
Asia2,005 2,957 
Middle East766 483 
Other non-U.S.443 389 
Total non-U.S. revenues5,753 4,337 
United States3,407 3,783 
Total revenues from contracts with customers9,160 8,120 
Intersegment revenues eliminated on consolidation43 27 
Total segment revenues$9,203 $8,147 
Revenue recognized on fixed-price contracts100 %100 %
Revenue recognized at a point in time100 %100 %
BDS revenues on contracts with customers, based on the customer's location, consisted of the following:
(Dollars in millions)Three months ended March 31
20262025
Revenue from contracts with customers:
U.S. customers$6,112 $4,933 
Non-U.S. customers(1)
1,487 1,365 
Total segment revenue from contracts with customers$7,599 $6,298 
Revenue recognized over time100 %100 %
Revenue recognized on fixed-price contracts63 %58 %
Revenue from the U.S. government (1)
93 %92 %
(1)Includes revenues earned from Foreign Military Sales through the U.S. government (FMS).
BGS revenues consisted of the following:
(Dollars in millions)Three months ended March 31
20262025
Revenue from contracts with customers:
Commercial$3,032 $2,971 
Government2,228 1,996 
Total revenues from contracts with customers5,260 4,967 
Intersegment revenues eliminated on consolidation110 96 
Total segment revenues$5,370 $5,063 
Revenue recognized at a point in time55 %54 %
Revenue recognized on fixed-price contracts86 %86 %
Revenue from the U.S. government (1)
32 %30 %
(1)Includes revenues earned from FMS.
Earnings in Equity Method Investments
During the three months ended March 31, 2026, our share of income/(loss) from equity method investments was $0 compared to ($4) during the same period in 2025.
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 March 31, 2026 was $694,709. We expect approximately 24% to be converted to revenue through 2027 and approximately 65% 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 income/(expense) are shown in the following table.
Three months ended March 31
20262025
Share-based plans($55)($30)
Deferred compensation17 5 
Amortization of previously capitalized interest(22)(21)
Research and development expense, net(104)(82)
Eliminations and other unallocated items(184)(234)
Unallocated items, eliminations and other
($348)($362)
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:
Three months ended March 31
20262025
Pension FAS/CAS service cost adjustment$93 $193 
Postretirement FAS/CAS service cost adjustment62 69 
FAS/CAS service cost adjustment$155 $262 
Assets
Segment assets are summarized in the table below:
March 31
2026		December 31
2025
Commercial Airplanes$94,254 $91,837 
Defense, Space & Security17,512 16,723 
Global Services15,595 16,026 
Unallocated items, eliminations and other37,426 43,649 
Total$164,787 $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
Three months ended March 31
20262025
Commercial Airplanes$175 $106 
Defense, Space & Security82 54 
Global Services24 26 
Unallocated items, eliminations and other994 488 
Total$1,275 $674 
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
Three months ended March 31
20262025
Commercial Airplanes$190 $101 
Defense, Space & Security
60 50 
Global Services69 73 
Centrally Managed Assets (1)
254 242 
Total$573 $466 
(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 three months ended March 31, 2026, $188 was allocated to the primary business segments, of which $105, $66, and $17 was allocated to BCA, BDS and BGS, respectively. During the three months ended March 31, 2025, $169 was allocated to the primary business segments, of which $82, $68, and $19 was allocated to BCA, BDS and BGS, respectively.