Lumen Q2 revenue falls less than expected

Lumen Technologies

04/08/2026 21:11

Overview
U.S. enterprise network provider's Q2 revenue fell 9% yr/yr but beat analyst expectations
Adjusted loss per share for Q2 beat analyst expectations
Company closed Alkira acquisition to expand digital networking capabilities

Outlook
Lumen reiterates 2026 outlook for adj EBITDA excluding special items of $3.1-$3.3 bln
Company maintains 2026 free cash flow outlook at $1.9-$2.1 bln, excluding special items
Lumen expects 2026 capital expenditures of $3.2-$3.4 bln, excluding special items

Result Drivers
STRATEGIC REVENUE MIX - Co said strategic revenue rose to 53% of total business revenue, up from 51% in Q1, driven by increased adoption of digital networking solutions
DIGITAL SERVICES ADOPTION - Co reported growth in Network-as-a-Service usage metrics, with new customer adoption up 22%, active ports up 34%, and active services up 29% quarter-over-quarter
PORTFOLIO RATIONALIZATION - Co redeployed resources to higher-growth, higher-margin digital opportunities by rationalizing product portfolio and simplifying internal systems

Company press release: ID:nBw71z2w0a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$2.81 bln
$2.77 bln (9 Analysts)
Q2 Adjusted Loss Per Share
Beat
$0.07
$0.14 (7 Analysts)
Q2 Loss Per Share
 
$0.20
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the integrated telecommunications services peer group is "buy."
Wall Street's median 12-month price target for Lumen Technologies Inc is $8.40, about 30.2% above its August 3 closing price of $6.45

Reuters Recommended Reads
Aug 4 - Lumen beats revenue estimates on strong digital networking demand
Aug 4 - ADTRAN Holdings misses Q2 revenue, adjusted profit estimates
Aug 4 - Qnity tops quarterly estimates, lifts annual forecast on AI infrastructure demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)