By Juby Babu and Nithyashree R B
Aug 4 (Reuters) – Lumen Technologies beat Wall Street estimates for second-quarter revenue and reaffirmed its full-year outlook on Tuesday, as the company continued its shift toward higher-margin digital networking services.
Lumen’s results come as it leans on its Alkira acquisition to expand its multi-cloud and AI networking capabilities, betting on rising enterprise demand for cloud-to-cloud connectivity as customers build out AI workloads.
Here are some details:
• CFO Chris Stansbury told Reuters that the near-term focus is on “quantifying what we believe the Alkira revenue can be” over the balance of the year, adding that Lumen’s goal is to include revenue guidance alongside with its 2027 outlook.
• Lumen reported second-quarter revenue of $2.81 billion, above analysts’ average estimate of $2.77 billion, according to data compiled by LSEG.
• Strategic revenue, which includes higher-margin digital networking products, rose 14% year over year and increased to 53% of business revenue in the second quarter, up from 51% in the first quarter.
• Adjusted EBITDA excluding special items fell to $802 million in the second quarter, from $877 million a year earlier.
• Stansbury told Reuters the company expects EBITDA growth to turn positive this year for the first time.
• Adjusted loss per share was 7 cents in the second quarter, versus analysts’ average estimate for a 14-cent loss.
• Lumen reiterated its full-year outlook, projecting adjusted EBITDA excluding special items of $3.1 billion to $3.3 billion and free cash flow excluding special items of $1.9 billion to $2.1 billion.
• Lumen, which provides digital fiber connectivity, data center interconnect and digital networking services to enterprise and AI customers, said adoption of its Network-as-a-Service platform is accelerating, with more than 3,000 NaaS customers.
(Reporting by Juby Babu in Mexico City and Nithyashree R B in Bengaluru; Editing by Shreya Biswas and Tasim Zahid)
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