Lumen Technologies (LUMN) Q3 2026 earnings summary

Executive summary

• Strategic revenue rose 9.6% YoY to $1.279B, 55% of total business revenue; total business revenue fell 4.5% to $2.346B, while total revenue declined 12.1% to $2.715B.

• Transformation priorities include scaling NaaS and programmable networking, monetizing legacy assets, and improving operating leverage; business revenue growth inflection remains modeled for 2028.

Financial highlights

• Adjusted EBITDA excluding Special Items was $715M, down 9.1% YoY; reported Adjusted EBITDA was $521M versus $571M a year earlier.

• Net loss narrowed to $265M from $621M; diluted loss per share was $0.26 versus $0.62.

• Q3 free cash flow was negative $76M and YTD free cash flow was $1.007B; Q3 operating cash flow was $518M and capex excluding Special Items was $796M.

• Q3 revenue included $27M of deferred CAF Phase II support payments; these did not affect Adjusted EBITDA.

Outlook and guidance

• FY26 guidance reaffirmed: Adjusted EBITDA excluding Special Items of $3.1B–$3.3B, capex of $3.2B–$3.4B, and free cash flow of $1.9B–$2.1B.

• FY26 cash income tax outlook is refunds of $350M–$450M, including a $420M refund with interest; free cash flow guidance includes $729M of Mass Markets FTTH divestiture proceeds.

• Copper decommissioning is estimated to generate $1B–$1.5B in pre-tax net proceeds over five years, excluding operating expense savings; significant initial-state work is expected to affect results in late 2027.

• Digital revenue reporting will include Lumen Intelligent Internet from 2027, with pro forma digital revenue provided.