Lumen beats quarterly revenue estimates on data center demand
Feb 4 (Reuters) - Fibre-optic cable provider Lumen Technologies LUMN.N reported fourth-quarter revenue above Wall Street estimates on Tuesday, driven by rising demand for data centers amid the AI boom.
As the need for cloud computing and AI heightens, Lumen has benefited from increased investments in data centers to support AI applications, which require significant computing power.
The telecommunications company has signed deals worth more than $8 billion with cloud and tech companies such as Alphabet's GOOGL.O Google, Microsoft MSFT.O, Amazon Web Services AMZN.O and Meta Platforms META.O for its networking solutions.
In a bid to phase out its traditional mass markets business and reduce its considerable debt, Lumen initiated a process to sell its consumer fiber operations, Reuters had reported in December, citing sources.
The Monroe, Louisiana-based company also forecast its full-year 2025 free cash flow to range from $700 million to $900 million, compared to analysts' estimates of $126.6 million, according to data compiled by LSEG.
Lumen Technologies reported revenue of $3.33 billion for the fourth quarter ended Dec. 31, above estimates of $3.20 billion.
Related Articles
[U.S. IPO] Valuation Doubles Figma’s Pre-IPO Level — Canva’s Latest Funding Hints at Public Market Debut
TradingKey - Following the strong market reception of design collaboration platform Figma’s IPO, which has reignited momentum for software company listings, another online design platform, Canva, appears to be preparing for a potential public offering.
Two Key Things to Watch in Walmart’s Q2 Earnings: Tariff Pressure and E-Commerce Momentum
TradingKey - U.S. retailer Walmart (WMT) will release its Q2 2026 fiscal earnings before the market opens on August 21. As a key barometer of the U.S. economy and consumer health, Walmart’s results will reveal how tariffs are impacting consumer behavior and corporate profits. Another focus is
U.S. Stock Market Risk Assessment: Learning from History, Mid-Term Outlook Remains Secure
We argue that the Federal Reserve’s monetary policy is the most critical factor influencing the stock market.
Powell's Jackson Hole Speech: For U.S. Stocks, Hawk or Dove Signal Could Be a Lose-Lose?
TradingKey - As U.S. inflation and labor market data show signs of rebalancing, Treasury traders and Wall Street banks have largely priced in a rate cut at the September FOMC meeting — the first of 2025. Yet both a more dovish-than-expected tone and a potential surprise hawkish signal from Fed Chair
Eurozone Q2 GDP Commentary: Will the Euro's Upward Momentum Persist?
TradingKey - On 14 August 2025, Eurostat published Q2 GDP figures, revealing a drop in the Eurozone's quarter-on-quarter growth from 0.6% in the first quarter to 0.1%. Consequently, annual growth eased from 1.5% to 1.4%. The slowdown primarily stems from the diminishing boost from European...
