Lumen Technologies (NYSE:LUMN) Posts Earnings Results, Beats Expectations By $0.44 EPS

Lumen Technologies (NYSE:LUMN) released its quarterly earnings data on Tuesday. The technology company reported $0.23 earnings per share for the quarter, beating the consensus estimate of ($0.21) by $0.44, FiscalAI reports. The firm had revenue of $3.04 billion during the quarter, compared to analysts’ expectations of $3.04 billion. Lumen Technologies had a negative net margin of 14.02% and a negative return on equity of 158.40%. The firm’s quarterly revenue was down 8.7% on a year-over-year basis. During the same period in the previous year, the company earned $0.09 earnings per share.

Here are the key takeaways from Lumen Technologies’ conference call:

• Closed the sale of the fiber-to-the-home business to AT&T (gross $5.75B), used net proceeds to retire $4.8B of super-priority bonds and other debt, leaving total debt under $13B and net leverage around 3.8x, while cutting annual interest expense by ~<$500M and reducing annual CapEx by >$1B.
• Signed nearly $13 billion of pre-funded PCF deals (including ~$2.5B in Q4) that will expand Lumen’s network to ~58M fiber miles by 2031, with ~ $116M of PCF-related revenue recognized in 2025 and management saying most PCF cash is received upfront (expect ~90% upfront).
• Digital/NaaS adoption accelerated in Q4 — active customers +29% QoQ, NaaS ports +31%, services sold +26% — and management expects these trends (including >900 Off‑Net ports sold) to help inflect Adjusted EBITDA to growth in 2026 and drive meaningful margin and free-cash-flow improvement.
• Q4 2025 results showed challenges: total revenue declined 8.7% YoY to $3.041B, Adjusted EBITDA was $767M (down from $1.052B a year ago), and Q4 free cash flow was negative $765M, partly due to a delayed $400M tax refund and $280M of special items.

Lumen Technologies Price Performance

Shares of LUMN traded down $0.30 during midday trading on Thursday, hitting $6.34. The stock had a trading volume of 3,586,961 shares, compared to its average volume of 13,153,705. The stock’s 50 day moving average is $8.25 and its 200 day moving average is $7.02. The firm has a market cap of $6.50 billion, a PE ratio of -3.59 and a beta of 1.51. Lumen Technologies has a 1 year low of $3.01 and a 1 year high of $11.95.

Institutional Trading of Lumen Technologies

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LUMN. Employees Retirement System of Texas purchased a new position in shares of Lumen Technologies during the third quarter valued at approximately $57,000. Smartleaf Asset Management LLC boosted its holdings in Lumen Technologies by 32.1% during the 2nd quarter. Smartleaf Asset Management LLC now owns 14,331 shares of the technology company’s stock valued at $65,000 after acquiring an additional 3,484 shares during the period. Hudson Bay Capital Management LP bought a new position in Lumen Technologies in the 2nd quarter valued at $68,000. IHT Wealth Management LLC purchased a new stake in Lumen Technologies in the second quarter worth $71,000. Finally, Bank of Nova Scotia boosted its stake in shares of Lumen Technologies by 57.7% during the second quarter. Bank of Nova Scotia now owns 16,931 shares of the technology company’s stock valued at $74,000 after purchasing an additional 6,193 shares during the period. 66.19% of the stock is owned by hedge funds and other institutional investors.

Lumen Technologies News Roundup

Here are the key news stories impacting Lumen Technologies this week:

• Positive Sentiment: AT&T transaction closes, materially improving the balance sheet — $5.75B deal reduced debt by ~ $4.8B, cut annual interest expense ~45% and frees up capex for network modernization, supporting a cleaner path to growth. Business Wire: AT&T Transaction
• Positive Sentiment: Q4 surprise profit and upbeat cash‑flow outlook — Lumen reported adjusted EPS beat and guided annual free cash flow above Street expectations, citing strong demand for connectivity and AI‑driven fiber products. This underpins near‑term FCF and deleveraging. Reuters: Free Cash Flow Outlook
• Positive Sentiment: Operational signs of shift toward higher‑margin enterprise products and strong PCF/NaaS demand cited on the call — supports a longer‑term margin improvement story. Yahoo Finance: Q4 Highlights
• Neutral Sentiment: Goldman Sachs raised its price target to $7.25 (neutral rating) — modest upside to the current price but not a buy endorsement, so limited immediate bullish impact. Benzinga: Goldman Sachs PT
• Neutral Sentiment: Company reported Q1 CY2026 sales slightly above estimates — incrementally supportive but mixed with other metrics. Globe and Mail: Q1 Sales
• Negative Sentiment: Revenue continues to decline — Q4 revenue fell ~9% Y/Y, leaving top‑line pressure and casting doubt on how quickly growth products will offset legacy declines. Investing.com: Revenue Decline
• Negative Sentiment: Analyst skepticism and downgrade risk — Raymond James reiterated market perform then flagged a growth hurdle and later downgraded, increasing sell‑side caution. Investing.com: Raymond James Downgrade
• Negative Sentiment: Investor selling and block trades — reports of a hedge fund (~AIGH Capital) exiting a multimillion‑dollar stake likely added downward pressure on the stock. Fool: AIGH Capital Exit
• Negative Sentiment: Market reaction and commentary pointing to a sharp pullback — coverage notes and sentiment pieces explain the recent larger intraday swings, contributing to today’s downward move. AAII: Why LUMN Is Down

Analyst Ratings Changes

LUMN has been the subject of several analyst reports. The Goldman Sachs Group increased their target price on shares of Lumen Technologies from $5.50 to $7.25 and gave the stock a “neutral” rating in a report on Wednesday. Raymond James Financial restated a “market perform” rating on shares of Lumen Technologies in a research report on Wednesday. Zacks Research raised shares of Lumen Technologies from a “hold” rating to a “strong-buy” rating in a report on Thursday, January 8th. Royal Bank Of Canada boosted their price objective on Lumen Technologies from $4.25 to $8.00 and gave the company a “sector perform” rating in a research report on Tuesday, November 25th. Finally, Citigroup cut Lumen Technologies from a “buy” rating to a “neutral” rating and set a $11.00 target price for the company. in a research report on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $7.25.

About Lumen Technologies

Lumen Technologies is a multinational technology company specializing in integrated network, edge cloud, security and collaboration services for enterprise and public sector clients. The company’s core offerings include high-capacity fiber and IP-based connectivity, managed edge computing solutions designed to accelerate applications and data processing closer to end users, and cybersecurity services ranging from DDoS protection to unified threat management. Through its unified portfolio, Lumen enables organizations to support digital transformation initiatives, modernize infrastructure and enhance operational resilience.

Leveraging one of the largest fiber footprints in North America, as well as infrastructure in Latin America and parts of Europe, Lumen connects customers across more than 60 countries.