Feb 4 (Reuters) - Fibre-optic cable provider Lumen
Technologies ( LUMN ) 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
Google, Microsoft ( MSFT ), Amazon Web Services
and Meta Platforms ( META ) 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 ( LUMN ) reported revenue of $3.33 billion for the
fourth quarter ended Dec. 31, above estimates of $3.20 billion.