Lumen Technologies reported second quarter revenue of $2.805 billion, a 9.3% year-over-year decline but ahead of analyst expectations. The company posted a diluted loss per share of $0.20, which was wider than the consensus estimate but an improvement from a $0.92 loss in the prior-year period. Management highlighted progress in its transformation, with growth in strategic revenue and digital services.
Key Highlights
- Strategic revenue within the business segment grew 14% year-over-year to $1.289 billion, now comprising 53% of total business revenue.
- The company generated $327 million in free cash flow (excluding special items), a significant improvement from a loss of $209 million in the same quarter last year.
- Reported strong quarter-over-quarter growth in its Network-as-a-Service (NaaS) offering, with new customer adoption up 22% and active services up 29%.
- Lumen reiterated its full-year 2026 financial outlook, including Adjusted EBITDA of $3.1 to $3.3 billion and Free Cash Flow of $1.9 to $2.1 billion.