Lumen Technologies posts mixed Q2 results with AI growth but overall revenue down 9.3% YoY

Lumen Technologies reported Q2 2026 results that beat expectations on revenue and earnings per share, driven by a 14.1% year-over-year growth in AI and strategic services which now make up 53% of revenue. However, overall revenue declined 9.3% year-over-year, heavily impacted by a 40% drop in Mass Markets revenue following asset sales and a steep 15.1% decline in legacy telecom services. The stock trades at low valuation multiples but carries high leverage, making it a speculative investment with significant risk and potential reward. Investors are advised to be cautious with position sizing due to the volatility and turnaround nature of the company.