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    How Investors May Respond To Boeing (BA) Securing FAA Certification For Its 737-7 MAX

    Simply Wall St·08/10/2026 12:28:03
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    • The U.S. Federal Aviation Administration has now granted Boeing an amended type certificate for its new 737-7, completing a multi-year certification program involving more than 1,000 hours of testing and clearing the smallest, longest-range 737 MAX for commercial service and inclusion under Production Certificate No. 700.
    • This approval not only enables deliveries to launch customer Southwest Airlines but also signals a clearer alignment with current regulatory expectations, particularly around human factors, safety and quality, which could influence how Boeing executes future aircraft programs.
    • We’ll now examine how the FAA’s certification of the 737-7, after extensive safety and systems reviews, affects Boeing’s broader investment narrative.

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    Boeing Investment Narrative Recap

    To own Boeing today, you need to believe the company can turn a large backlog and improving execution into sustainable cash generation while managing debt and lingering safety concerns. The 737-7 certification meaningfully reduces a key near term product risk and could support delivery and cash flow momentum, but Boeing’s balance sheet, loss making commercial segment, and execution on quality and culture remain central uncertainties for the stock over the next few years.

    The most relevant recent update alongside the 737-7 approval is Boeing’s Q2 2026 result, which showed revenue rising to US$24,560 million and a narrower net loss of US$444 million. While still unprofitable, incremental improvement in the income statement gives context for how incremental milestones like new variant certifications may feed through to future earnings and free cash flow, if Boeing sustains operational progress.

    Yet behind the certification headline, investors should also be aware that concerns about structural quality control issues and future certification delays could still...

    Read the full narrative on Boeing (it's free!)

    Boeing’s narrative projects $125.6 billion revenue and $7.9 billion earnings by 2029. This requires 10.9% yearly revenue growth and about a $6.0 billion earnings increase from $1.9 billion today.

    Uncover how Boeing's forecasts yield a $270.00 fair value, a 15% upside to its current price.

    Exploring Other Perspectives

    BA 1-Year Stock Price Chart
    BA 1-Year Stock Price Chart

    Some of the lowest analysts were already assuming slower progress, with revenue only reaching about US$121.2 billion by 2029 and earnings around US$5.9 billion, and they see structural certification and quality risks as much more persistent than the consensus view. This 737-7 news may eventually shift those expectations, but it highlights how differently you can read the same company story.

    Explore 6 other fair value estimates on Boeing - why the stock might be worth just $270.00!

    The Verdict Is Yours

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.