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Q1 26 EPS
$-0.20
MISS 108.12%
Est. $-0.10
Q1 26 Revenue
$2.90B
BEAT +2.48%
Est. $2.83B
vs S&P Since Q1 26
-19.0%
TRAILING MARKET
LUMN -17.2% vs S&P +1.8%
Market Reaction
Did LUMN Beat Earnings? Q1 2026 Results
Lumen Technologies delivered a mixed first quarter for 2026, beating on the top line while falling well short of profit expectations, as the telecom-turned-networking company navigates a messy but deliberate transformation. Revenue came in at $2.90 b… Read more Lumen Technologies delivered a mixed first quarter for 2026, beating on the top line while falling well short of profit expectations, as the telecom-turned-networking company navigates a messy but deliberate transformation. Revenue came in at $2.90 billion, ahead of the $2.83 billion consensus by 2.48%, though still down 8.9% year-over-year as legacy product erosion and the sale of its Fiber-to-the-Home business to AT&T weighed on the headline. The bottom line told a harder story: Lumen posted a GAAP loss per share of $0.20, missing the $0.10 consensus estimate by 108.12%, snapping a four-quarter streak of EPS beats, with the shortfall driven largely by a $226 million net loss on early debt retirement and elevated transformation charges. The quarter's clearest positive signal came from Strategic revenue, which now accounts for 51% of total business revenue and grew 9% year-over-year to $1.25 billion, underpinned by strong NaaS momentum and the announced $475 million acquisition of cloud-native networking platform Alkira. Lumen maintained full-year adjusted EBITDA guidance of $3.10 to $3.30 billion and targets a return to business revenue growth by 2028.
Key Takeaways
- • Strategic revenue surpassed Legacy revenue at 51% of total business revenue
- • NaaS customer count grew 25% quarter-over-quarter
- • NaaS services sold grew 32% quarter-over-quarter
- • NaaS fabric ports grew 35% quarter-over-quarter
- • Public Sector revenue grew 10% sequentially and 5% year-over-year
- • Adjusted EBITDA margin excluding special items stable at 29.3%
- • Leverage reduced below 4.0x following FTTH sale
LUMN Forward Guidance & Outlook
Lumen maintained its full-year 2026 adjusted EBITDA guidance of $3.1 to $3.3 billion and updated free cash flow guidance to $1.9 to $2.1 billion (now including $729 million of FTTH divestiture proceeds classified as operating cash flow, up from prior $1.2 to $1.4 billion). Net cash interest guidance remained at $650 to $750 million. Capital expenditures guidance held at $3.2 to $3.4 billion. Cash income tax refund guidance stayed at ($350) to ($450) million, reflecting an expected $400 million refund from recent tax legislation in the first half of 2026. The company expects adjusted EBITDA inflection exiting 2026, with return to business revenue growth targeted for 2028, powered by transformation cost savings, PCF revenue, and reduced capex intensity.
LUMN YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
LUMN Revenue by Segment
With YoY comparisons, source: SEC Filings
LUMN Revenue by Geography
With YoY comparisons, source: SEC Filings
“Our strategy is working and we continue to progress towards our key financial goals we set out at Investor Day. The planned Alkira acquisition accelerates our digital platform strategy by extending the programmable capabilities customers need to support AI workloads.”
— Kate Johnson, Q1 2026 Earnings Press Release
LUMN Earnings Trends
LUMN vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
LUMN EPS Trend
Earnings per share: estimate vs actual
LUMN Revenue Trend
Quarterly revenue: estimate vs actual
LUMN Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $-0.10 | $-0.20 | -108.12% | $2.90B | +2.48% |
| Q4 25 BEAT FY | $-0.27 | $0.00 | +100.00% | $3.04B | -0.04% |
| FY Full Year | $-0.56 | $-1.75 | -212.56% | $12.40B | -0.07% |
| Q3 25 BEAT | $-0.27 | $-0.20 | +25.01% | $3.09B | +1.55% |
| Q2 25 BEAT | $-0.27 | $-0.03 | +88.70% | $3.09B | -0.68% |
| Q1 25 BEAT | $-0.27 | $-0.13 | +51.15% | $3.18B | +1.79% |