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Investors love a good turnaround story. That is particularly true when it is a great All-American brand that is one of the most recognized companies. Boeing Co. (NYSE: BA) has been in a long-awaited turnaround where some investors might be worried that it just cannot turn around. A fresh earnings report and seeking FAA approval to build more 737 Max planes demands some attention.

Just don’t forget about all those present issues like tariffs, China, a trade war, and a slowing economy — all while the airline sector has been warnings of slower demand ahead.

Boeing’s stock closed up 2% at $162.52 ahead of earnings and the initial post-earnings reaction looked to be up almost 4% more at $168.75. Its 52-week range is $128.88 to $196.95 and the consensus analyst price target is roughly $192. It seems hard to imagine that Boeing was a $400 stock just over 5 years ago.

Wall Street’s cheer for Boeing after earnings is because its $0.49 per share loss was less than half of the $1.13 loss per share that analysts were calling for. Its revenue also rose by over 17% to $19.50 billion, beating expectations by more than $100 million.

Where Boeing’s turnaround gets really interesting, or at least the continued hope of a turnaround, is that its commercial jet revenue soared by 75% to $8.15 billion. Boeing’s revenue for defense, space and security actually fell about 9.5% to $6.30 billion during the first quarter of 2025.

It was not that long ago that there were calls for Boeing to explore a separation of its commercial planes from its defense, space and security operations to protect what was considered the “good and stable” part of its business.

Another boost that the turnaround investor community can hang their hats on is that the order backlog rose to $545 billion from $521 billion just a quarter before — and still up from $529 billion a year ago. This total backlog is now represented as more than 5,600 planes which are ordered or which has been given the go-ahead to build. In short, Boeing has massive pent-up demand and should have high visibility for future results. If only it wasn’t still operating under restrictions and operating at a loss.

After Boeing’s workers went on strike, right when the company was losing billions, the labor situations should now be considered resolved for several years. Boeing also previously shored up its balance sheet by raising billions in capital to give it flexibility during its turnaround. The company’s $31 million loss represents a significant improvement in its cash burn (about $2.3 billion in the quarter).

As for Wall Street endorsing that Boeing’s turnaround is here and ready to roll, that may be premature. Boeing’s results only include tariff data as of March 31, 2025. We know that China has already returned jets and advised its own airlines to not order from Boeing for the time being. Boeing’s CEO has now claimed that the strong start to 2025 with over a half-trillion dollars in backlog will give the company the flexibility needed to navigate this environment.

Wall Street is likely to take a wait-and-see view, while still cheering the improvements that were seen in what Boeing can control. The larger issues are likely what Boeing and the rest of Corporate America cannot control. Wall Street analysts have already been burned trusting that Boeing’s turnaround was underway and looking for clear skies ahead. That muscle-memory reflex may prevent immediate massive upgrades and price target hikes unless things rapidly cool down in Washington, D.C. and with trading partners.