Boeing Shares Surge as Operational Recovery Gains Momentum

Boeing US0970231058

Boeing has opened 2026 with a powerful rally, marking a stark contrast to a volatile 2025. The aerospace giant's stock jumped nearly 5% on Friday, closing around $227 amid a significant surge in trading volume. This resurgence is being fueled by a combination of underestimated operational progress, concrete production data, and major new contracts that are rebuilding investor confidence.

The case for a turnaround is being supported by hard financial data. Boeing's third-quarter revenue reached $23.27 billion, surpassing expectations of $22.06 billion. Perhaps more critically, the company reported a positive free cash flow of $200 million, its first positive reading in an extended period. This milestone is viewed by the market as a potential signal that the firm's liquidity challenges are being overcome.

Progress is also evident on the production floor. After stabilizing its 737 MAX manufacturing rate at 38 aircraft per month by the end of 2025, the U.S. Federal Aviation Administration (FAA) recently approved an increase to 42 jets monthly. Boeing is targeting a rate of approximately 52 planes per month by the close of 2026—a pace analysts identify as a crucial driver for future profit growth.

Wall Street Upgrades Reflect Growing Confidence

This operational momentum has not gone unnoticed by major financial institutions. Several investment banks have added Boeing to their recommendation lists as the new year begins. TD Cowen explicitly named the company as one of its "Best Ideas for 2026," reaffirming a $240 price target. Their rationale cites a noticeable acceleration in production speed and a robust projected increase in free cash flow over the coming years.

Should investors sell immediately? Or is it worth buying Boeing?

Taking an even more bullish stance, JPMorgan Chase raised its price target to $245. The bank's strategists believe the market is underestimating the pace of the operational recovery under CEO Kelly Ortberg. They argue that the restructuring initiated the previous year is now yielding measurable results, visible in both manufacturing output and financial performance.

Defense and Commercial Orders Bolster Backlog

Beyond the commercial aviation segment, Boeing's defense division is providing additional support. Just before year-end, the company secured a major $8.6 billion contract to supply F-15 fighter jets to Israel. When combined with recent orders from carriers like Qatar Airways and Turkish Airlines, Boeing's total order backlog has swelled to over 5,900 aircraft, representing a combined value exceeding $535 billion.

From a technical perspective, the equity is currently testing a resistance zone between $226 and $230. A sustained breakout above this level would be viewed as confirming the recovery trend that began in late 2025. With positive cash flow and rising production rates, the market is actively repricing Boeing's prospects for 2026.