Lumen Technologies Q1 revenue beats estimates; co to acquire Alkira

Lumen Technologies

05/05/2026 21:12

Overview

US telecom network operator's Q1 revenue declined 9% but beat analyst expectations

Company to acquire Alkira to expand programmable networking for enterprise clients

In a separate release, co announced it will acquire Alkira for $475 mln in cash

Outlook

Lumen raises 2026 free cash flow guidance to $1.9-$2.1 bln from $1.2-$1.4 bln

Company maintains 2026 adjusted EBITDA outlook at $3.1-$3.3 bln

Lumen expects 2026 capital expenditures of $3.2-$3.4 bln

Result Drivers

STRATEGIC REVENUE MIX - Co said strategic revenue surpassed legacy revenue for the first time, driven by growth in digital platform and Network-as-a-Service adoption

TRANSFORMATION INITIATIVES - Co cited progress on transformation strategy, including ERP implementation and modernization efforts

LIQUIDITY IMPROVEMENT - Co improved liquidity and reduced leverage following sale of Mass Markets Fiber-to-the-Home business

Company press release: ID:nBw9zBQh0a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$2.90 bln
$2.83 bln (10 Analysts)
Q1 EPS, Excluding Special Items
-$0.47
Q1 EPS
-$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 $8.00, about 14.3% below its May 4 closing price of $9.33

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)