Can Boeing's Defense Business Become a Bigger Growth Driver?

Boeing's Defense, Space & Security segment reported 13% revenue growth to $7.5 billion in Q2 2026, driven by higher volume across its portfolio. The segment maintains an $85 billion backlog with 27% from international customers. Key programs including the MQ-25A Stingray and T-7A Red Hawk achieved Milestone C, clearing them for low-rate initial production. Boeing trades at a valuation discount to industry peers.