Lumen Technologies Reports 9% Revenue Decline and Net Loss in Q1 2026

Lumen Technologies, Inc. reported a decline in financial performance for the first quarter of 2026, with operating revenue decreasing to $2.899 billion from $3.182 billion in the same period last year, marking a 9% drop. The company recorded a net loss of $200 million, consistent with the loss of $201 million reported in the prior year. Basic and diluted loss per share remained unchanged at $(0.20). The decrease in revenue was attributed to a significant reduction in Mass Markets revenue following the divestiture of its Fiber-to-the-Home business to AT&T, which closed on February 2, 2026, for $5.72 billion.

Operating expenses also saw a notable reduction, falling to $2.297 billion from $3.075 billion, primarily due to a decrease in costs associated with services and products, which dropped by 15% to $1.435 billion. The company reported a net gain of $596 million from the sale of its Mass Markets business, which contributed positively to operating income, which stood at $602 million compared to $107 million in the previous year. The reduction in operating expenses was driven by lower network expenses and employee-related costs.

In terms of strategic developments, Lumen completed the sale of its Mass Markets Fiber-to-the-Home business, which significantly impacted its customer base and revenue structure. The company has also announced plans to acquire Alkira, Inc. for $475 million, a move aimed at enhancing its service offerings in the digital networking space. This acquisition is expected to close in the third quarter of 2026, subject to regulatory review.

Operationally, Lumen's total assets decreased to $30.622 billion from $34.342 billion at the end of 2025, largely due to the divestiture. The company reported a headcount of approximately 21,000 employees as of March 31, 2026. The divestiture has led to a shift in focus towards enterprise customers, with the company aiming to expand its strategic product offerings while managing the decline of legacy services.

Looking ahead, Lumen anticipates continued demand for high-capacity, low-latency connectivity solutions, driven by enterprise digital transformation and government broadband initiatives. However, the company acknowledges potential risks from macroeconomic factors, including inflationary pressures and geopolitical instability, which could impact its operations and financial performance. Lumen remains committed to optimizing its capital structure and enhancing its financial flexibility through disciplined capital allocation and strategic investments.