Lumen Technologies (NYSE:LUMN) Releases Earnings Results, Misses Estimates By $0.35 EPS

Key Points

• Big EPS miss: Lumen reported Q1 EPS of ($0.47), missing estimates by $0.35, while revenue came in at $2.90B (above the ~$2.83B estimate) but was down 8.9% year‑over‑year and adjusted EBITDA declined, with special items affecting comparability.
• Alkira acquisition: Lumen agreed to buy Alkira for $475M in cash to expand cloud‑to‑cloud and data‑center interconnect/SD‑WAN capabilities, expected to close in Q3 and become accretive as the platform scales.
• Stronger balance sheet and guidance: After the fiber‑to‑home sale to AT&T Lumen reduced leverage to below 4x and raised 2026 free cash flow guidance to $1.9B–$2.1B, while NaaS adoption and customer wins show growing demand for its programmable networking services.

Lumen Technologies (NYSE:LUMN - Get Free Report) issued its quarterly earnings results on Tuesday. The technology company reported ($0.47) EPS for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.35), FiscalAI reports. The firm had revenue of $2.90 billion for the quarter, compared to the consensus estimate of $2.83 billion. The business's revenue for the quarter was down 8.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.13) EPS.

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

• Alkira acquisition announced ($475M, expected close Q3) — will extend Lumen Connect into east‑west cloud interconnect (cloud‑to‑cloud & data‑center) and is expected to be financed with cash, neutral to margins near‑term but accretive as the platform scales.
• Balance sheet materially strengthened after the fiber‑to‑the‑home sale to AT&T (leverage below 4x, ~ $300M annual interest savings), and management raised 2026 free cash flow guidance to $1.9B–$2.1B after reclassifying transaction proceeds to operating cash flow.
• Strong NaaS adoption and meaningful customer wins — Q1 quarter‑over‑quarter: customer adoption +25%, active ports +35%, active services +32%, nearly 2,500 NaaS customers (30%+ repeat purchasers) and large enterprise deals (600‑site bank; 300‑site logistics) that validate demand for programmable networking.
• Quarterly financials were mixed: total revenue and results were in line with expectations but adjusted EBITDA fell to $849M (YoY decline) and digital revenue remains small at $37M, with special items (net -$430M) and a one‑time $596M gain from the divestiture affecting comparability.

Lumen Technologies Trading Down 1.3%

LUMN stock traded down $0.13 during midday trading on Tuesday, hitting $9.21. The stock had a trading volume of 13,594,501 shares, compared to its average volume of 13,210,742. The firm has a market cap of $9.48 billion, a P/E ratio of -5.29 and a beta of 1.65. Lumen Technologies has a 1-year low of $3.37 and a 1-year high of $11.95. The business has a fifty day moving average price of $7.41 and a two-hundred day moving average price of $8.03.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Lumen Technologies in a report on Tuesday, April 21st. UBS Group lifted their price target on shares of Lumen Technologies from $5.00 to $6.00 and gave the stock a "neutral" rating in a report on Thursday, February 5th. Zacks Research upgraded shares of Lumen Technologies from a "hold" rating to a "strong-buy" rating in a report on Thursday, January 8th. Wall Street Zen upgraded shares of Lumen Technologies from a "sell" rating to a "hold" rating in a report on Sunday. Finally, Citigroup cut their price target on shares of Lumen Technologies from $11.00 to $10.00 and set a "neutral" rating on the stock in a report on Thursday, February 5th. One research analyst has rated the stock with a Strong Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Lumen Technologies has a consensus rating of "Hold" and a consensus target price of $7.25.

Insider Buying and Selling at Lumen Technologies

In related news, Director Diankha Linear sold 45,000 shares of the business's stock in a transaction on Friday, February 20th. The shares were sold at an average price of $7.89, for a total value of $355,050.00. Following the transaction, the director owned 198,229 shares in the company, valued at $1,564,026.81. The trade was a 18.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Kathleen E. Johnson bought 78,685 shares of the company's stock in a transaction that occurred on Thursday, February 5th. The stock was purchased at an average price of $6.35 per share, for a total transaction of $499,649.75. Following the acquisition, the chief executive officer owned 8,562,582 shares of the company's stock, valued at $54,372,395.70. This trade represents a 0.93% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 2.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Lumen Technologies

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Kovitz Investment Group Partners LLC increased its position in shares of Lumen Technologies by 60.3% during the fourth 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 in the last quarter. Compound Planning Inc. grew its position in shares of 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 grew its position in shares of Lumen Technologies by 30.4% during the 4th quarter. Corient Private Wealth LLC now owns 71,811 shares of the technology company's stock valued at $558,000 after acquiring an additional 16,736 shares during the period. Alberta Investment Management Corp bought a new position in shares of Lumen Technologies during the 4th quarter valued at approximately $2,143,000. Finally, Mercer Global Advisors Inc. ADV boosted its holdings in Lumen Technologies by 12.9% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 62,928 shares of the technology company's stock worth $489,000 after buying an additional 7,177 shares during the period. 66.19% of the stock is owned by institutional investors.

Trending Headlines about Lumen Technologies

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

• Positive Sentiment: Q1 revenue topped estimates: Lumen reported $2.90B in revenue versus analysts' ~$2.83B estimate, showing better‑than‑expected top‑line performance that supports the company’s service demand picture. Lumen (LUMN) Reports Q1 Loss, Tops Revenue Estimates
• Positive Sentiment: Lumen agreed to acquire Alkira for $475M in cash to bolster its cloud networking and SD‑WAN capabilities — a strategic tuck‑in that could accelerate growth in cloud‑centric networking services. Lumen beats quarterly revenue estimates, to acquire Alkira for $475 million
• Neutral Sentiment: Lumen extended the early participation date and withdrawal deadline for its exchange offers on long‑dated notes — a procedural move that gives bondholders more time but also may indicate slower participation than hoped. Monitor takeup rates for any signal on refinancing success. Lumen Technologies, Inc. and Qwest Corporation Announce Extension of Early Participation Date and Withdrawal Deadline of Previously Announced Exchange Offers
• Neutral Sentiment: After a large multi‑month run‑up (shares up substantially over the last year), some investors are debating valuation and whether upside is already priced in — adding to intraday volatility. Is It Too Late To Consider Lumen Technologies (LUMN) After A 120% One Year Surge?
• Negative Sentiment: Big EPS miss pressured the stock: Lumen reported a Q1 loss of ($0.47) per share, well below consensus (Zacks ~($0.06); MarketBeat noted ~$ (0.12)), raising concerns about margin pressure and near‑term profitability. Lumen earnings report and transcript
• Negative Sentiment: Revenue declined 8.9% year‑over‑year, highlighting ongoing headwinds in legacy services even as new initiatives scale — a reminder earnings recovery may take time. Lumen earnings report and transcript

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.

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