Lumen Technologies Posts Narrower Q2 Loss, Beats Revenue Expectations

Lumen Technologies reported Q2 2026 revenue of $2.81 billion, down 9.3% year over year but ahead of analyst expectations. The company posted an adjusted loss of $0.07 per share, wider than the $0.03 loss a year earlier but well inside the $0.13 loss analysts had forecast, and shares rose 4% on the news.

GAAP net loss narrowed sharply to $201 million from $915 million in the prior-year quarter, while adjusted EBITDA came in at $802 million, down from $877 million a year ago. The results follow Lumen's completed $5.72 billion sale of its Mass Markets fiber-to-the-home business to AT&T, proceeds it used to retire $4.77 billion of superpriority loans and secured notes, cutting long-term debt from $17.35 billion to $12.93 billion.

The debt paydown is expected to save roughly $500 million in annual interest expense, giving Lumen more room to fund its AI networking and digital transformation push. The company also strengthened its board this week, appointing former HSBC Group COO John M. Hinshaw, who previously held technology leadership roles at Boeing, Verizon Wireless, and Hewlett Packard Enterprise.

With the fiber divestiture and debt reduction largely behind it, Lumen's next test is whether AI-driven network demand can offset the ongoing decline in legacy revenue. Investors will be watching whether adjusted EBITDA stabilizes toward the company's reiterated full-year guidance of $3.1 billion to $3.3 billion.

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