Lumen Says AI Networking Push Lifted Strategic Revenue Above 50% in Q2

Lumen Technologies said its shift toward AI-focused networking services accelerated during the second quarter, with strategic revenue accounting for more than half of its business revenue for the first time as enterprises increased adoption of cloud connectivity and Network-as-a-Service (NaaS) offerings.

The company reported revenue of $2.805 billion for the quarter ended June 30, down from $3.092 billion a year earlier, while net loss narrowed to $201 million from $915 million. Strategic revenue rose to 53% of total business revenue, up from 51% in the previous quarter and 45% a year earlier, as legacy services continued to decline. Lumen also generated $327 million in free cash flow excluding special items and reaffirmed its full-year financial outlook.

According to the earnings release, the company now serves more than 3,000 NaaS customers, with new customer adoption increasing 22% quarter over quarter, active ports rising 34%, and active services growing 29%.

AI Networking Strategy Takes Center Stage

While the financial results met expectations, management devoted much of the earnings call to explaining how Lumen is repositioning itself around enterprise AI networking rather than traditional telecom services.