The Motley Fool·2d ago
Why Lumen Technologies Sank TodayLumen delivered a top-line miss but a bottom-line beat. However, its strategic revenue is growing double-digits, which now makes up over half of revenue.
Lumen Technologies is navigating a severe operational and financial downturn, marked by a 9.3% year-over-year revenue contraction in 2026Q2 and negative operating margins of -3.1%.
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Revenue has declined for ten consecutive quarters, falling 9.3% year-over-year to $2.8B in 2026Q2, while operating margin turned negative at -3.1%, reflecting a $242M swing from positive territory in 2024Q4.
Lumen is positioning itself as a data supply chain for AI, offering Private Connectivity Fabric (PCF) deals that allow hyperscalers to lease large volumes of fiber capacity for their AI and cloud infrastructure. This strategy aims to monetize its fiber network by providing high-margin, long-term contracts for services like connecting GPU clusters across the US.
The sale of its Mass Markets fiber-to-the-home business to AT&T has simplified Lumen's operations, reduced debt, and improved cash flow predictability. This allows the company to refocus on its core long-haul fiber backbone and higher-growth digital networking services.
The divestiture has led to a reduced debt burden, pushed out maturities, and lowered interest expenses, with approximately $500 million in annual interest expense removed. A new $825 million revolving credit facility also shores up liquidity.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Nov 4, 2026 | -$0.14+39.6% vs -$0.23 | $2.7B-0.7% vs $2.7B |
Q3 2026 Aug 4, 2026 | -$0.07+47.7% vs -$0.13 | $2.8B+2.4% vs $2.7B |
Q2 2026 May 5, 2026 | -$0.47-389.1% vs -$0.10 | $2.9B+2.4% vs $2.8B |
Q1 2026 Feb 3, 2026 | $0.23+209.5% vs -$0.21 | $3.0B-0.0% vs $3.0B |
Lumen delivered a top-line miss but a bottom-line beat. However, its strategic revenue is growing double-digits, which now makes up over half of revenue.
Lumen Technologies, Inc. ( LUMN ) Q3 2026 Earnings Call November 4, 2026 5:00 PM EST Company Participants Michael Reinke Kathleen Johnson - CEO & Director Christopher Stansbury - President & CFO Conference Call Participants Michael Rollins - Citigroup Inc., Research Division Frank Louthan - Raymond James & Associates, Inc., Research Division Gregory Williams - TD Cowen, Research Division Sebastiano Petti - JPMorgan Chase & Co, Research Division Eric Luebchow - Wells Fargo Securities, LLC, Research Division Samuel McHugh - BNP Paribas, Research Division Batya Levi - UBS Investment Bank, Research Division Nicholas Del Deo - MoffettNathanson LLC Presentation Operator Greetings, and welcome to Lumen Technologies Third Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded, Tuesday, November 4, 2026.
Although the revenue and EPS for Lumen (LUMN) give a sense of how its business performed in the quarter ended September 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Lumen (LUMN) came out with a quarterly loss of $0.14 per share versus the Zacks Consensus Estimate of a loss of $0.16. This compares to a loss of $0.2 per share a year ago.
Benchmark LUMN against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Lumen Technologies, Inc. (LUMN)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $3.99 | $4.11B | -2.28 | -5.39% | -14.02% | — | 0.03% | |
| $38.49 | $9.63B | -29.61 | 3.23% | -6.24% | -7.91% | — | |
| $18.00 | $494.55M | 78.26 | 6.52% | 3.57% | 11.59% | — | |
| $1.89 | $539.38M | -8.59 | -4.06% | -21.76% | — | — | |
| $5.20 | $429.82M | -7.22 | -8.13% | -13.2% | -42.52% | — | |
| $21.63 | $148.22B | 7.12 | 2.71% | 10.14% | 10.35% | 5.27% |
Lumen Technologies, Inc. (LUMN) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Lumen Technologies, Inc. (LUMN) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 4, 2026·SEC
Jun 11, 2026·SEC
Jun 10, 2026·SEC
Feb 20, 2026·SEC
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Lumen Technologies, Inc. (LUMN) stock FAQ — growth, dividends, profitability & financials explained
Lumen Technologies, Inc. (LUMN) reported $11.83B in revenue over the trailing twelve months. Revenue was $12.40B in fiscal year 2025. That is 1554% more than the $749.7M of fiscal year 1996.
Lumen Technologies, Inc. (LUMN) revenue fell by 5.4% in fiscal year 2025, compared with the prior fiscal year.
No. Lumen Technologies, Inc. (LUMN) reported a net loss of $1.02B over the trailing twelve months.
Lumen Technologies, Inc. (LUMN) does not currently pay a meaningful dividend.
Lumen Technologies, Inc. (LUMN) generated $5.83B in free cash flow over the trailing twelve months.
