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Lumen Technologies

Lumen Technologies (LUMN) Q2 2026 Earnings

Reported Aug 4, 2026 at 4:16 PM ET · SEC Source

Q2 26 EPS

$-0.07

BEAT +50.53%

Est. $-0.14

Q2 26 Revenue

$2.81B

BEAT +2.35%

Est. $2.74B

vs S&P Since Q2 26

-3.4%

TRAILING MARKET

LUMN -3.2% vs S&P +0.2%

Market Reaction

Did LUMN Beat Earnings? Q2 2026 Results

Lumen Technologies delivered a stronger-than-expected second quarter, posting an adjusted loss of $0.07 per share against a consensus estimate of $0.14, a 50.53% beat, while revenue of $2.81 billion topped forecasts by 2.35%, even as total sales decl… Read more Lumen Technologies delivered a stronger-than-expected second quarter, posting an adjusted loss of $0.07 per share against a consensus estimate of $0.14, a 50.53% beat, while revenue of $2.81 billion topped forecasts by 2.35%, even as total sales declined 9.3% year-over-year. The top-line softness was largely explained by the Q1 2026 divestiture of its Mass Markets Fiber-to-the-Home business to AT&T, which contributed to a 40% collapse in Mass Markets revenue to $361 million, though the broader business segment held up more resiliently with only a 1.8% decline. The more telling detail was the continued shift in revenue mix toward strategic products, which grew 14.1% year-over-year to represent 53% of total business revenue, reflecting Lumen's push to reposition itself as an AI-era enterprise infrastructure platform, a narrative reinforced by its recent acquisition of Alkira. Free cash flow swung to positive $327 million from negative $209 million a year ago, and Lumen reiterated its full-year adjusted EBITDA outlook of $3.10 billion to $3.30 billion.

Key Takeaways

  • • Strategic revenue increased to 53% of total business revenue, up from 51% in Q1 2026 and 45% in Q2 2025
  • • Large Enterprise revenue grew 3.7% YoY to $794 million
  • • Public Sector revenue grew 1.4% YoY to $490 million
  • • Operating cash flow increased to $971 million from $570 million YoY
  • • Interest expense declined 41% YoY to $201 million due to debt reduction
  • • Free Cash Flow excluding Special Items improved to $327 million from $(209) million YoY
  • • Adjusted EBITDA margin excluding special items improved 20 bps to 28.6%

LUMN Forward Guidance & Outlook

Lumen reiterated its full-year 2026 financial outlook: Adjusted EBITDA excluding Special Items of $3.1 to $3.3 billion; Free Cash Flow excluding Special Items of $1.9 to $2.1 billion (includes $729 million of Mass Markets FTTH divestiture proceeds classified as cash flow from operations); Net Cash Interest of $650 to $750 million; Capital Expenditures excluding Special Items of $3.2 to $3.4 billion; Cash Income Taxes refund of ($350) to ($450) million (reflecting a $400 million refund from recent tax legislation, excluding taxes related to the Mass Markets FTTH divestiture). Additional outlook ranges include income tax expense of $45 to $200 million, total other expense net of $1.1 to $1.3 billion, depreciation and amortization expense of $2.6 to $2.8 billion, and stock-based compensation expense of $60 to $80 million.

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LUMN YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

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LUMN Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26
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LUMN Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“Lumen is putting innovation back where it belongs - inside the network itself. By embedding digital intelligence directly into the physical network layer, we're delivering higher-impact business outcomes instead of competing on price alone. That's a fundamentally different value proposition in enterprise networking, and a new chapter for Lumen customers and investors.”

— Kate Johnson, Q2 2026 Earnings Press Release

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