-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Lumen Technologies reported Q1 2026 results with total revenue declining to $2.899B (-9% Y/Y) and diluted loss per share of $0.20, flat vs. the prior year, though excluding special items the loss widened to $0.47 from $0.13. The quarter marked a historic milestone as Strategic revenue reached 51% of business revenue at $1.246B (+9%), officially surpassing Legacy revenue of $1.198B (-14%) for the first time. This validates the transformation strategy, with strong NaaS momentum showing 25% Q/Q customer growth and a 32% increase in services sold. Management completed the Mass Markets divestiture generating $4.977B and announced the Alkira acquisition to accelerate digital capabilities. The company raised 2026 free cash flow guidance to $1.9B-$2.1B from $1.2B-$1.4B, reflecting divestiture proceeds. We expect business revenue to inflect to growth in 2028 as Strategic revenues become dominant, and we will look for NaaS adoption metrics as leading indicators of digital transformation progress.