Lumen Technologies beats on its Q3 loss, misses on revenue and keeps its 2026 outlook

Management says it remains on track for an inflection in adjusted EBITDA this year, even as revenue came in below what was expected.

Lumen Technologies reported an adjusted third-quarter loss of $0.14 a share, excluding special items, after the US close on Wednesday. That was $0.09 better than expected. Revenue of $2.72B fell short of the $2.79B expected.

The company reaffirmed its 2026 outlook, and that matters more than the earnings beat. It expects adjusted EBITDA, a measure of operating profit, of $3.1B to $3.3B. Free cash flow is guided at $1.9B to $2.1B and capital spending at $3.2B to $3.4B. All three exclude special items. Holding the range keeps the adjusted EBITDA inflection on the calendar for this year.

The revenue miss sits awkwardly with how management describes the quarter. Chris Stansbury, president and CFO, said the results reflect a higher-quality revenue base with stronger margins. But the top line has been shrinking: revenue was down 9.3% year over year in the second quarter.

Stansbury also said Lumen is on track for a return to business revenue growth in 2028. That is a longer claim than this quarter can test.