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Lumen beats quarterly revenue estimates on data center demand
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Lumen beats quarterly revenue estimates on data center demand
Feb 4, 2025 1:23 PM

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.

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