The Outpost is a comprehensive collection of curated artificial intelligence software tools that cater to the needs of small business owners, bloggers, artists, musicians, entrepreneurs, marketers, writers, and researchers.
© 2025 TheOutpost.AI All rights reserved
Curated by THEOUTPOST
On Wed, 6 Nov, 8:02 AM UTC
2 Sources
[1]
Lumen raises annual cash flow forecast on AI deals, legacy business weighs on results
Nov 5 (Reuters) - Fibre-optic cable provider Lumen Technologies (LUMN.N), opens new tab raised its annual free cash flow forecast on Tuesday thanks to AI deals with large cloud companies, even as weakness in its legacy business was a drag on its quarterly results. The company has secured deals worth more than $8 billion in total from cloud and tech companies such as Alphabet's Google, Microsoft (MSFT.O), opens new tab, Amazon Web Services (AWS) (AMZN.O), opens new tab and Meta Platforms (META.O), opens new tab for its networking solutions, Chief Financial Officer Chris Stansbury said. "AI needs data centers and data centers need to be connected and that's what we do," Stansbury told Reuters in an interview. The clutch of AI deals have helped Lumen capitalize on Big Tech's push to build out data centers that can support apps such as ChatGPT, which requires huge amounts of computing power. The company's shares have quadrupled this year, after worries about Lumen's high debt load and decline in its business that includes voice, broadband and ethernet services hammered its stock in the last two years. Lumen's deals with a group of lenders have also given it access to more than $2 billion in fresh capital, while extending its debt maturities to at least 2029. However, revenue fell nearly 12% to $3.22 billion for the third quarter, in line with expectations, according to LSEG-compiled analysts' estimates. "We are humble about the weight of the legacy business and the past and we are doing what we can to manage that," Stansbury said, referring to the company's efforts towards growing its digital fiber connectivity solutions. Lumen now expects annual free cash flow to be between $1.2 billion and $1.4 billion, up from its prior forecast of between $1 billion and $1.2 billion. It posted an adjusted loss of 13 cents per share in the third quarter, which was wider than expectations of 9 cents. Reporting by Harshita Mary Varghese in Bengaluru; Editing by Anil D'Silva Our Standards: The Thomson Reuters Trust Principles., opens new tab
[2]
Lumen Raises Annual Cash Flow Forecast on AI Deals, Legacy Business Weighs on Results
(Reuters) - Fibre-optic cable provider Lumen Technologies raised its annual free cash flow forecast on Tuesday thanks to AI deals with large cloud companies, even as weakness in its legacy business was a drag on its quarterly results. The company has secured deals worth more than $8 billion in total from cloud and tech companies such as Alphabet's Google, Microsoft, Amazon Web Services (AWS) and Meta Platforms for its networking solutions, Chief Financial Officer Chris Stansbury said. "AI needs data centers and data centers need to be connected and that's what we do," Stansbury told Reuters in an interview. The clutch of AI deals have helped Lumen capitalize on Big Tech's push to build out data centers that can support apps such as ChatGPT, which requires huge amounts of computing power. The company's shares have quadrupled this year, after worries about Lumen's high debt load and decline in its business that includes voice, broadband and ethernet services hammered its stock in the last two years. Lumen's deals with a group of lenders have also given it access to more than $2 billion in fresh capital, while extending its debt maturities to at least 2029. However, revenue fell nearly 12% to $3.22 billion for the third quarter, in line with expectations, according to LSEG-compiled analysts' estimates. "We are humble about the weight of the legacy business and the past and we are doing what we can to manage that," Stansbury said, referring to the company's efforts towards growing its digital fiber connectivity solutions. Lumen now expects annual free cash flow to be between $1.2 billion and $1.4 billion, up from its prior forecast of between $1 billion and $1.2 billion. It posted an adjusted loss of 13 cents per share in the third quarter, which was wider than expectations of 9 cents. (Reporting by Harshita Mary Varghese in Bengaluru; Editing by Anil D'Silva)
Share
Share
Copy Link
Lumen Technologies raises its annual free cash flow forecast due to significant AI deals with major tech companies, while grappling with declining revenue in its legacy business.
Lumen Technologies, a prominent fibre-optic cable provider, has announced a significant increase in its annual free cash flow forecast, primarily driven by lucrative AI-related deals with major cloud companies. This positive development comes despite ongoing challenges in the company's legacy business sectors 1.
Lumen has secured contracts worth over $8 billion from tech giants including Google, Microsoft, Amazon Web Services (AWS), and Meta Platforms. These deals center around Lumen's networking solutions, which are crucial for the expanding AI infrastructure 2.
Chief Financial Officer Chris Stansbury emphasized the company's strategic position, stating, "AI needs data centers and data centers need to be connected and that's what we do" 1. This alignment with the AI industry's growth has allowed Lumen to capitalize on the increasing demand for data center connectivity, particularly for power-intensive applications like ChatGPT.
The company has revised its annual free cash flow forecast upwards to between $1.2 billion and $1.4 billion, a notable increase from the previous projection of $1 billion to $1.2 billion 1. This positive outlook has contributed to a remarkable quadrupling of Lumen's share price over the past year.
However, Lumen's Q3 results reveal ongoing challenges. The company reported a revenue decline of nearly 12% to $3.22 billion, aligning with analyst expectations. Additionally, Lumen posted an adjusted loss of 13 cents per share, exceeding the anticipated 9 cents loss 2.
While AI-related deals are driving growth, Lumen continues to grapple with its declining legacy business, which includes voice, broadband, and ethernet services. Stansbury acknowledged these challenges, stating, "We are humble about the weight of the legacy business and the past and we are doing what we can to manage that" 1.
To address financial concerns, Lumen has secured agreements with lenders, providing access to over $2 billion in fresh capital and extending debt maturities to at least 2029. These measures aim to alleviate worries about the company's high debt load, which had previously impacted its stock performance 2.
As Lumen navigates the transition from its legacy business to more advanced digital fiber connectivity solutions, the company remains focused on leveraging the growing demand for AI-related infrastructure. The success of recent deals with major tech companies underscores the potential for continued growth in this sector, even as Lumen works to address challenges in its traditional business areas.
Reference
[2]
U.S. News & World Report
|Lumen Raises Annual Cash Flow Forecast on AI Deals, Legacy Business Weighs on Results
Lumen Technologies experiences a record-breaking stock rally as investors bet on its potential in the AI market. The company's ongoing transformation and Q2 earnings results further fuel optimism.
2 Sources
2 Sources
Lumen Technologies initiates the sale of its consumer fiber operations, aiming to reduce debt and capitalize on the AI boom. The company's strategic shift includes major contracts with tech giants and a potential multi-billion dollar deal for its fiber unit.
2 Sources
2 Sources
Lumen's stock sees significant gains as the company leverages AI infrastructure investments from tech giants like Microsoft and Meta, signaling a potential turnaround despite previous financial challenges.
3 Sources
3 Sources
Lumen Technologies' stock experiences a significant surge following better-than-expected Q2 earnings and a notable analyst upgrade, marking a potential turnaround for the telecom company.
3 Sources
3 Sources
Corning and Lumen Technologies have announced a supply agreement for advanced fiber optic cable to support data center and network infrastructure. The deal aims to meet growing bandwidth demands and enhance connectivity.
2 Sources
2 Sources
