Boeing (BA) investors were fixated on two stories in May.
One was a long-delayed jet order from China. The other was a slow climb in 737 production.
A third development landed on June 1 but didn’t make nearly as much noise. Boeing said its MQ-28 Ghost Bat drone had cleared a key stealth test.
Boeing’s stock usually moves on commercial news, while its defense projects get far less attention. But this time, it earned a closer look.
Boeing validates MQ-28 Ghost Bat stealth performance
Boeing confirmed that its MQ-28 Ghost Bat passed radar cross-section testing, a check that measures how easily an aircraft can be spotted by enemy radar.
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A lower radar cross-section shrinks the range at which an enemy can detect and engage the aircraft, which lifts its odds of surviving a contested mission.
“The combination of a highly capable platform, stealth features, and advanced autonomy provides unprecedented ability for air forces to extend their mission effectiveness and operational flexibility,” said Brad Thompson, who leads Phantom Works Australia.
Boeing’s MQ-28 Ghost Bat cleared radar cross-section testing, the company confirmed on June 1, 2026.
Kevin Carter / Getty Images
What is the Ghost Bat and why does Australia keep paying for it
The Ghost Bat is a “loyal wingman,” an un-crewed jet built to fly beside crewed aircraft and take on the riskiest parts of a mission.
Boeing began developing it in 2017, flew it for the first time in 2021, and has now logged more than 150 flights, the company said.
Australia keeps writing checks.
Boeing Defence Australia booked an AUD$754 million third tranche in December, Breaking Defense reported, lifting total Australian funding above AUD$1 billion.
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The program has already proven it can fight. An MQ-28 fired an AIM-120 missile and destroyed an aerial target at Woomera, Australia’s Department of Defence confirmed.
That record is why Boeing calls it the most mature collaborative combat aircraft in allied service, a claim Shephard Media has echoed.
Why the market is looking the other way
The China order dominated the headlines.
China’s Commerce Ministry confirmed a 200-jet purchase, CNBC reported, Boeing’s first major Chinese deal in nearly a decade.
Investors had braced for closer to 500 jets, so the smaller figure knocked shares lower even as the news counted as a win.
The 737 ramp is the other magnet. Boeing is lifting monthly output from 42 jets toward 47 this summer, and the Street treats that cadence as the main driver.
Against those two stories, a drone stealth test in Queensland struggles for attention.
The defense numbers investors are skipping
Boeing’s defense unit is quietly turning.
Boeing’s first-quarter defense scorecard:
- Defense revenue rose 21% to $7.6 billion.
- Segment earnings climbed 50% to $233 million.
- Defense backlog hit a record $86 billion, with 27% from outside the U.S. Stocks: Boeing’s first-quarter earnings release.
That contrast matters.
Commercial Airplanes still ran an operating loss in the quarter, while defense made money.
The Ghost Bat sits inside the part of the business that already earns a profit, and export interest is building. Boeing has agreed to pitch the drone to Germany with Rheinmetall.
What still must happen for the Ghost Bat to move BA stock
The Ghost Bat program is tiny next to Boeing’s $695 billion total backlog, which is the value of all the orders Boeing has won but not yet delivered.
One stealth test is good news, but it’s too small to shift the share price or change the investment case by itself.
The bigger catalysts are export orders and a U.S. selection.
The U.S. Air Force picked rival drones from Anduril and General Atomics to build production-representative prototypes for its Collaborative Combat Aircraft (CCA) program, DefenseScoop reported.
That leaves Boeing needing to win new export orders for the Ghost Bat from allied militaries to grow the program.
For investors, that makes the stealth milestone a long-term play rather than a near-term catalyst.
Wall Street’s average price target sits near $270, roughly 20% above recent levels, according to StockAnalysis.com, with the bull case still resting on the 737 and 787 ramps.
The defense progress is the cushion under that thesis, and it is the piece that most of the market is not pricing yet.