3 Tailwinds Making Boeing's Stock a Buy in 2026
Key Points
Boeing's free cash flow swung from negative to positive in 2025.
The company has more than 6,100 commercial airplane orders in its backlog.
Boeing's partnership with the U.S. military is expanding in a newly released multi-year framework.
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The Boeing Company (NYSE: BA) sought to close what was a tumultuous chapter in its history. From production halts to outright tragedies, Boeing is entering, hopefully, a much better era. Boeing has three tailwinds in particular that make its stock a buy in 2026.
A staggeringly large backlog, a new seven-year framework with the Department of Defense, and warming relations with China are all reasons why Boeing will rebound in 2026 and in the years ahead.
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Boeing's ready for a smoother ride
Boeing's backlog has grown to an astronomical $682 billion. This includes more than 6,100 commercial airplane orders. A backlog of this size provides excellent long-term revenue visibility and demand that is unlikely to fizzle out anytime soon.
On April 1, Boeing announced its new initiative with the U.S. Department of Defense to triple production of PAC-3 missile seeker components. The deal is a positive sign that the company's relationship with the government is durable and likely to grow if defense spending continues to increase.
Lastly, Boeing is closing in on a massive 500 jet deal with China. If this sale closes, it would be one of the largest in company history. Chinese airlines have mostly purchased aircraft from Airbus (ETR: AIR) in recent years, but Boeing is working to regain international market share.
Image source: Getty Images.
There was hope the deal would close after President Donald Trump met with China's President Xi in a meeting originally scheduled for the end of March, but it was postponed due to the ongoing conflict in Iran. The meeting was rescheduled for mid-May.
Boeing's financials are still in recovery mode but showing improvement. For the full year 2025, Boeing's revenue reached $89.5 billion, a 34% year-over-year increase. The manufacturer made 600 commercial deliveries, which was its highest total since 2018.
Free cash flow also impressively swung from negative to positive, going from a loss of $12 billion to $1.06 billion in 2025 as well. This steep recovery is expected to continue through 2026. This trajectory should help Boeing reduce its debt load and reward patient investors.
The stock is lifting higher
Boeing's stock has also increased by over 20% in the past 12 months on the company's financial turnaround. The analysts' consensus is optimistic. The average price target for Boeing is now $270. As of April 2, the stock is trading slightly above $200, suggesting plenty of room to run.
With a giant backlog, robust defense contracts, and potential to claw back market share from Airbus overseas, Boeing's runway is clear and ready for takeoff. It's a compelling recovery story for an American institution.
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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.
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