Lumen Technologies (NYSE:LUMN) Releases Earnings Results, Misses Estimates By $0.34 EPS

Lumen Technologies (NYSE:LUMN) issued its earnings results on Tuesday. The technology company reported ($0.47) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.34), FiscalAI reports. The company had revenue of $2.90 billion during the quarter, compared to analyst estimates of $2.83 billion. The firm’s revenue was down 8.9% on a year-over-year basis. During the same quarter last year, the firm earned ($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 Stock Performance

Shares of LUMN stock traded down $1.35 on Thursday, reaching $8.47. 20,813,773 shares of the company’s stock traded hands, compared to its average volume of 13,539,257. Lumen Technologies has a 12-month low of $3.37 and a 12-month high of $11.95. The company has a market capitalization of $8.72 billion, a P/E ratio of -4.86 and a beta of 1.65. The business’s 50 day moving average price is $7.46 and its two-hundred day moving average price is $8.05.

Trending Headlines about Lumen Technologies

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

• Positive Sentiment: Strategic acquisition: Lumen announced it will acquire Alkira for $475M to add a cloud?native control plane for multi?cloud/data?center connectivity, expanding its addressable market and strengthening its AI/cloud networking positioning. This is seen as core to Lumen’s shift to a digital platform. Alkira Acquisition Article
• Positive Sentiment: Q1 revenue beat and strategic growth: Lumen topped revenue estimates and reported strategic revenue growth (strategic sales outpacing legacy), and management outlined a $1.9–$2.1B 2026 free?cash?flow outlook — all supportive of the company’s transformation story. Q1 Results
• Positive Sentiment: Analyst target lift: TD Cowen raised its price target (from $8 to $9) and UBS raised its target (to $8) — signals that some sell?side analysts view the transformation and deal activity favorably. Analyst Actions
• Neutral Sentiment: Re?rating and valuation focus: Several pieces are re?assessing valuation after recent strong short?term gains; these analyses may influence investor perceptions but don’t change fundamentals immediately. Valuation Article
• Neutral Sentiment: Partnerships and business development: Lumen is extending measurement/advertising partnerships (e.g., Teads/Lumen Research integration) that are incremental to revenue diversification but not material to near?term earnings. Partnership Article
• Negative Sentiment: Wider-than-expected Q1 loss: Lumen reported a larger non?GAAP loss per share than consensus (missed EPS expectations), which is a primary reason for the negative reaction despite the revenue beat. Q1 Loss Article
• Negative Sentiment: High?cost debt offering: Lumen/Level 3 priced $1B of 7.50% senior notes due 2037 — a relatively high coupon that raises near?term interest burden and may concern income?sensitive or leverage?focused investors. Notes Pricing
• Negative Sentiment: Analyst downgrade: Zacks lowered Lumen from “strong?buy” to “hold,” signaling increased caution among some analysts after the quarter and deal news. Zacks Downgrade

Insider Buying and Selling at Lumen Technologies

In other news, Director Diankha Linear sold 45,000 shares of Lumen Technologies stock in a transaction on Friday, February 20th. The stock was sold at an average price of $7.89, for a total transaction of $355,050.00. Following the transaction, the director owned 198,229 shares in the company, valued at approximately $1,564,026.81. The trade was a 18.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 2.30% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of LUMN. Meeder Advisory Services Inc. grew its stake in Lumen Technologies by 10.6% in the fourth quarter. Meeder Advisory Services Inc. now owns 15,243 shares of the technology company’s stock valued at $118,000 after purchasing an additional 1,460 shares in the last quarter. Parallel Advisors LLC grew its stake in Lumen Technologies by 22.4% in the fourth quarter. Parallel Advisors LLC now owns 8,095 shares of the technology company’s stock valued at $63,000 after purchasing an additional 1,481 shares in the last quarter. Cetera Investment Advisers grew its stake in Lumen Technologies by 1.2% in the fourth quarter. Cetera Investment Advisers now owns 131,946 shares of the technology company’s stock valued at $1,025,000 after purchasing an additional 1,519 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in Lumen Technologies by 8.4% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 22,786 shares of the technology company’s stock valued at $177,000 after purchasing an additional 1,762 shares in the last quarter. Finally, Smartleaf Asset Management LLC grew its stake in Lumen Technologies by 8.4% in the fourth quarter. Smartleaf Asset Management LLC now owns 23,961 shares of the technology company’s stock valued at $187,000 after purchasing an additional 1,859 shares in the last quarter. Hedge funds and other institutional investors own 66.19% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on LUMN shares. Raymond James Financial restated a “market perform” rating on shares of Lumen Technologies in a report on Wednesday, February 4th. Citigroup decreased their target price on Lumen Technologies from $11.00 to $10.00 and set a “neutral” rating on the stock in a report on Thursday, February 5th. Zacks Research cut Lumen Technologies from a “strong-buy” rating to a “hold” rating in a report on Tuesday. TD Cowen lifted their target price on Lumen Technologies from $8.00 to $9.00 and gave the stock a “hold” rating in a report on Wednesday. Finally, UBS Group lifted their target price on Lumen Technologies from $6.00 to $8.00 and gave the stock a “neutral” rating in a report on Wednesday. Eight investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus target price of $7.88.

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.