Lumen Technologies (NYSE:LUMN) Posts Earnings Results, Beats Expectations By $0.06 EPS

Lumen Technologies (NYSE:LUMN) posted its quarterly earnings results on Tuesday. The technology company reported ($0.07) EPS for the quarter, topping the consensus estimate of ($0.13) by $0.06, FiscalAI reports. The company had revenue of $2.81 billion during the quarter, compared to analysts’ expectations of $2.74 billion. During the same period in the prior year, the business earned ($0.03) EPS. The company’s quarterly revenue was down 9.3% on a year-over-year basis.

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

• Strategic revenue grew 14% year over year and reached 53% of total business revenue, up from 45% a year ago, while North American enterprise revenue declined only 0.2%.
• NaaS adoption continued to accelerate, with customers exceeding 3,000, new-customer adoption up 22% quarter over quarter, active ports up 34%, and active services up 29%; more than 20% of new adopters were new to Lumen.
• Management expects the Alkira acquisition to accelerate digital growth by simplifying multi-cloud and AI networking, expanding customer wallet share, and enabling higher-margin services; Alkira was not included in prior digital revenue targets.
• Adjusted EBITDA fell to $802 million from approximately $877 million a year ago, while total business revenue declined 1.8%; management also cautioned that third-quarter EBITDA is seasonally about $100 million lower than second quarter.
• Lumen is continuing to monetize underused infrastructure through PCF deals but will avoid new projects with returns near or below its cost of capital, while phasing out enterprise voice and communications products to redirect resources toward digital services.

Lumen Technologies Stock Performance

Lumen Technologies stock opened at $6.75 on Wednesday. Lumen Technologies has a one year low of $3.61 and a one year high of $11.95. The stock has a market cap of $6.95 billion, a PE ratio of -3.88 and a beta of 1.78. The stock has a 50-day moving average of $7.70 and a two-hundred day moving average of $7.88.

Wall Street Analyst Weigh In

LUMN has been the topic of a number of research analyst reports. TD Cowen upped their target price on shares of Lumen Technologies from $8.00 to $9.00 and gave the stock a “hold” rating in a research note on Wednesday, May 6th. Wall Street Zen downgraded Lumen Technologies from a “hold” rating to a “sell” rating in a research report on Saturday. UBS Group lifted their price objective on Lumen Technologies from $6.00 to $8.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. Weiss Ratings restated a “sell (d-)” rating on shares of Lumen Technologies in a report on Friday, July 17th. Finally, Wells Fargo & Company upped their target price on Lumen Technologies from $8.00 to $9.00 and gave the stock an “equal weight” rating in a report on Friday, May 8th. Nine equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Lumen Technologies currently has a consensus rating of “Reduce” and an average price target of $8.32.

Institutional Investors Weigh In On Lumen Technologies

Large investors have recently made changes to their positions in the stock. Kovitz Investment Group Partners LLC raised its stake in Lumen Technologies by 60.3% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 41,301 shares of the technology company’s stock worth $321,000 after acquiring an additional 15,539 shares during the last quarter. Compound Planning Inc. lifted its stake in Lumen Technologies by 9.4% during the 4th quarter. Compound Planning Inc. now owns 60,918 shares of the technology company’s stock valued at $473,000 after acquiring an additional 5,234 shares during the period. Corient Private Wealth LLC increased its stake in shares of Lumen Technologies by 30.4% in the fourth quarter. Corient Private Wealth LLC now owns 71,811 shares of the technology company’s stock worth $558,000 after acquiring an additional 16,736 shares during the period. Alberta Investment Management Corp acquired a new position in Lumen Technologies during the fourth quarter valued at $2,143,000. Finally, Mercer Global Advisors Inc. ADV boosted its holdings in Lumen Technologies by 12.9% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 62,928 shares of the technology company’s stock valued at $489,000 after purchasing an additional 7,177 shares during the last quarter. 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: Revenue and EPS exceeded expectations. Lumen reported Q2 revenue of $2.81 billion, above the $2.74 billion consensus, while its adjusted loss of $0.07 per share was better than analysts’ expectations. Lumen beats revenue estimates on strong digital networking demand
• Positive Sentiment: Higher-growth digital networking is gaining traction. Strategic Business revenue grew 14.1% year over year and now represents more than half of the Business segment, supporting management’s shift toward higher-margin digital services. Demand is also being driven by cloud connectivity and AI-related networking workloads. Lumen Q2: Another Step Forward
• Positive Sentiment: Full-year expectations were reaffirmed. Lumen continues to target $1.9 billion to $2.1 billion in free cash flow, while integrating Alkira to expand its multi-cloud and AI networking capabilities. Lumen beats revenue estimates on strong digital networking demand
• Neutral Sentiment: Board expertise was expanded. John M. Hinshaw joined Lumen’s board, adding experience in enterprise technology, cybersecurity, risk management and digital transformation, but the appointment is unlikely to materially affect near-term results. Lumen Technologies Appoints John M. Hinshaw to Board of Directors
• Negative Sentiment: Revenue continues to contract. Quarterly sales fell 9.3% from the prior year, and the company remained unprofitable, reporting a $0.07 per-share loss versus a $0.03 loss in the year-ago period. Investors may view the transformation as promising but still early, particularly as Lumen works to quantify Alkira’s contribution and stabilize its broader business. Lumen’s Q2 CY2026: Beats On Revenue

Lumen Technologies Company Profile

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.