Lumen Technologies Reports 9% Revenue Decline and $201 Million Net Loss in Q2 2026

Lumen Technologies, Inc. reported a decline in financial performance for the second quarter of 2026, with operating revenue of $2.805 billion, down 9% from $3.092 billion in the same period last year. For the first half of 2026, revenue totaled $5.704 billion, a decrease of 9% compared to $6.274 billion in the first half of 2025. The company recorded a net loss of $201 million for the quarter, an improvement from a net loss of $915 million in the prior year, while the loss for the first six months was $401 million, compared to a loss of $1.116 billion in the same period of 2025. Basic and diluted loss per share for the quarter was $(0.20), compared to $(0.92) a year earlier.

The decrease in revenue was primarily driven by a significant drop in Mass Markets revenue, which fell 40% to $361 million, largely due to the divestiture of the Mass Markets Fiber-to-the-Home business to AT&T in February 2026. This divestiture generated pre-tax cash proceeds of $5.72 billion, which Lumen used to reduce its debt significantly. In contrast, Business revenue showed a slight decline of 2% to $2.444 billion, with strategic revenue increasing by 14% while legacy revenue decreased by 15%. The company attributed the decline in legacy services to ongoing shifts in technology and customer demand.

Operationally, Lumen's total operating expenses decreased by 22% to $2.893 billion for the quarter, driven by reductions in costs associated with services and products, as well as lower employee-related expenses. The company reported a net gain of $31 million on the sale of its Mass Markets business, which contributed positively to its operating income. Additionally, Lumen's interest expense decreased significantly, reflecting a reduction in average outstanding long-term debt and interest rates.

Looking ahead, Lumen Technologies is focused on its strategic initiatives to enhance its network capabilities and expand its product offerings, particularly in high-capacity, low-latency connectivity solutions. The company anticipates continued demand for its services, supported by enterprise digital transformation and government broadband programs. However, it also faces challenges from inflationary pressures, supply constraints, and geopolitical instability, which could impact its operational performance and financial outlook. The company remains committed to optimizing its capital structure and managing its liquidity effectively to navigate these challenges.