Copyright Reuters
The telecom and networking firm continues to have an opportunity to expand its share of business revenue, as hyperscalers and enterprise customers ramp up bandwidth demand to support growing AI applications and modernize their core connectivity infrastructure. Sign up here. Lumen reported third-quarter revenue of $3.09 billion, compared with analysts' average estimate of $3.04 billion, according to data compiled by LSEG. The company said it has signed new deals worth $1 billion in October for its private connectivity fabric (PCF) solutions, designed for AI workloads, bringing the total value to more than $10 billion. The October deal is largely with one client, Chief Financial Officer Chris Stansbury told Reuters in an interview, without naming the customer. There are nearly 15 to 16 customers that add up to the total value, with Lumen seeing more pathways to demand for the PCF product. When the deal closes, Lumen's leverage will be below four times and it will continue to reduce debt, Stansbury said. "We're not in a position where we have to sell things anymore," Stansbury said. "Our debt is no longer a headwind." Lumen posted an adjusted loss of 20 cents per share during the third quarter, compared with analysts' estimate of a 27-cent loss. It also reiterated its fiscal 2025 forecast. Reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar
