Boeing's Air Force One Charge Widens Loss as UPS, Coke, PayPal, GSK and Hilton Beat and Raise

A mixed batch of second-quarter results Tuesday saw Boeing post a wider-than-expected loss on Air Force One cost overruns while UPS, Coca-Cola, PayPal, GSK and Hilton topped estimates and lifted their outlooks.

Boeing's Air Force One Costs Widen the Loss

Boeing took a $280 million charge on its Air Force One replacement program due to higher engineering costs, contributing to a $428 million net loss for the quarter; core loss per share of 76 cents was far worse than the 30-cent loss analysts expected, though narrower than a year earlier. Revenue still rose 8% to $24.56 billion on higher commercial deliveries, and the company generated $631 million of free cash flow versus negative $200 million a year ago, reaffirming guidance of $1 billion to $3 billion in free cash flow for the year. The two delayed presidential jets are still expected to be delivered in 2028.

UPS and Coca-Cola Raise Guidance

UPS beat expectations and raised full-year guidance to $91.2 billion in revenue and roughly $7.22 in adjusted EPS, even as shares fell about 8% on a forecast for flat domestic revenue in the third quarter and the completion of its Amazon volume "glide down." Coca-Cola also beat estimates, with net income of $4.43 billion and net sales up 7% to $13.38 billion, and raised its full-year outlook to 9-10% comparable EPS growth and roughly 5% organic revenue growth; shares rose more than 6%.

PayPal Presses Ahead Amid Takeover Interest

PayPal beat earnings expectations and raised its 2026 profit forecast alongside new cost-saving steps, as it tries to convince investors it is worth more than the $60.50-per-share, roughly $53 billion takeover offer reported from Stripe and Advent International — an offer its board considers inadequate and analysts called "low-ball" against the company's roughly $360 billion pandemic-era valuation.

GSK and Hilton Also Top Estimates

GSK beat second-quarter profit expectations and launched a £1.9 billion ($2.52 billion) cost-savings program to fund late-stage drug development, sending shares up 4.2%. Hilton separately raised its full-year room revenue growth forecast, citing strong demand for luxury hotels.

Sources

• Boeing posts bigger loss than expected as Air Force One costs weigh on results (cnbc)
• Boeing posts larger-than-expected Q2 loss as Air Force One costs rise (yahoo_finance)
• UPS beats earnings expectations, raises full-year guidance (cnbc)
• UPS turns the page as job cuts and Amazon ‘glide down’ are completed (marketwatch)
• UPS raises full-year forecast after upbeat quarter, wraps up Amazon volume transition (investing_com)
• Coca-Cola tops earnings estimates, hikes full-year outlook as demand for drinks climbs (cnbc)
• PayPal delivers an earnings beat as investors await updates on possible merger (marketwatch)
• PayPal presses on with turnaround in pivotal quarter as sale questions linger (yahoo_finance)
• GSK launches $2.5 billion savings drive to boost drug pipeline (yahoo_finance)
• Hilton raises annual room revenue growth forecast on strong luxury hotel demand (investing_com)
• Hilton Raises Outlook on Higher Revenue, Hotel Rates (yahoo_finance)

Not investment advice.