Verizon Posts $5 Billion Profit While Lumen Loses $621 Million Chasing AI Infrastructure

"Lumen missed revenue estimates at $3.09 billion but beat on adjusted EPS with a $0.20 loss versus the $0.27 expected. The $621 million net loss nearly tripled the $148 million loss in Q3 2024. Adjusted EBITDA fell to $787 million from $899 million. Mass markets revenue dropped 8% to $631 million. North America business revenue declined 3% to $2.38 billion."

"CEO Kate Johnson emphasized disciplined execution and transformation. The company closed $1 billion in new Private Connectivity Fabric deals, targeting enterprises building out AI workloads. Lumen refinanced $2.4 billion in debt, saving $135 million annually in interest. Free cash flow hit $1.66 billion, and the company held $2.4 billion in cash. Johnson reaffirmed full-year guidance and expects to land at the high end of the EBITDA range."

"Verizon delivered $33.82 billion in revenue, missing the $35.31 billion estimate, but met EPS expectations at $1.21. Net income climbed to $5.06 billion from $3.41 billion. Wireless service revenue rose 2.1% to $21.0 billion. Wireless equipment revenue increased 5.2% to $5.6 billion. Free cash flow over nine months reached $15.76 billion."

"CEO Dan Schulman announced a strategic pivot to a customer-first culture and signaled bold action to redefine the company's trajectory. Verizon raised its dividend for the 19th consecutive year to $0.69 quarterly, yielding 6.7%. The company reaffirmed full-year guidance for wireless service revenue growth of 2.0% to 2.8%, adjusted EBITDA growth of 2.5% to 3.5%, and EPS growth of 1.0% to 3.0%."

Lumen reported Q3 revenue of $3.09 billion and a $621 million net loss, with adjusted EBITDA declining to $787 million and mass markets revenue falling 8%. North America revenue decreased 3%. Management closed $1 billion in Private Connectivity Fabric deals targeting AI workloads, refinanced $2.4 billion in debt to save $135 million annually, and held $2.4 billion in cash with $1.66 billion of free cash flow. Lumen reaffirmed full-year guidance and expects to reach the high end of EBITDA guidance. Verizon posted $33.82 billion in revenue, $5.06 billion net income, rising wireless service and equipment revenue, strong free cash flow, a dividend increase, and reaffirmed growth guidance.

Read at 24/7 Wall St.