Lumen Technologies (LUMN) AI Stock Analysis

• Market Cap: $11.22B
• Dividend Yield: N/A
• Average Volume (3M): 20.99M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -4.56%
• EPS Growth: 23.46%
• Country: US
• Employees: 24,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.20
• Shares Outstanding: 1,025,643,800
• 10 Day Avg. Volume: 37,588,743
• 30 Day Avg. Volume: 20,992,787
• PEG Ratio: 0.96
• Price to Book (P/B): 11.30
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 4.76
• Enterprise Value/Market Cap: 1.93
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 4.72
• Enterprise Value/Ebitda: 17.59
• 1Y Price Target: $7.07
• Price Target Upside: -32.79% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): -0.81
• Revenue Forecast (FY): $12.37B

• Rating: 58 Neutral
• Price Target: $12.50 ▲(18.82% Upside)

Lumen Technologies' overall stock score is primarily influenced by its strong earnings call performance, highlighting strategic initiatives and partnerships that suggest future growth potential. However, significant financial challenges, including declining revenues and high leverage, weigh heavily on the score. Technical analysis indicates bullish momentum, but overbought conditions could lead to short-term volatility. The valuation remains unattractive due to negative earnings and lack of dividends.

Positive Factors

Strategic Partnerships

The partnership with Palantir enhances Lumen's AI infrastructure, potentially driving innovation and competitive advantage in digital services.

Debt Refinancing

Refinancing reduces interest expenses, improving cash flow and financial flexibility, aiding long-term financial health.

Network as a Service (NaaS) Expansion

NaaS expansion significantly broadens market reach, positioning Lumen as a leader in scalable network solutions for enterprises.

Negative Factors

Declining Legacy Telecom Revenue

Ongoing decline in legacy telecom revenue challenges Lumen's ability to maintain stable cash flows and necessitates strategic pivots.

Mass Market Segment Challenges

Declining mass market revenue indicates challenges in consumer segments, impacting overall revenue diversification and growth potential.

High Financial Leverage

High leverage and negative equity pose solvency risks, limiting financial flexibility and increasing vulnerability to economic downturns.

Lumen Technologies Business Overview & Revenue Model

Company Description

Lumen Technologies (LUMN) is a global technology company that provides communication and data services primarily to business customers. It operates in sectors such as telecommunications, cloud computing, and managed services. Lumen offers a range of products including high-speed internet, voice services, and network solutions, as well as advanced data analytics and security services, catering to the needs of enterprises looking to enhance their digital transformation efforts.

How the Company Makes Money

Lumen Technologies generates revenue through multiple streams, primarily by offering telecommunications services, including local and long-distance voice services, broadband internet, and data networking solutions. The company earns significant income from its enterprise segment, which serves large businesses with customized solutions for data transport, cloud services, and cybersecurity. Additionally, Lumen has developed partnerships with various technology firms to enhance its service offerings, such as integrating cloud solutions with its network infrastructure. The company also leverages its extensive fiber-optic network to provide high-capacity data transport services, which are crucial for businesses seeking reliable connectivity. Overall, its revenue model is built on a combination of subscription-based services, usage-based billing for data services, and long-term contracts with enterprise clients.

Lumen Technologies Financial Statement Overview

Summary

Lumen Technologies faces significant financial challenges, with declining revenues and profitability issues. The balance sheet shows high leverage and potential solvency risks, while cash flow generation remains a concern. The company needs to address these issues to improve its financial health and stability.

Income Statement

Lumen Technologies has experienced declining revenue over recent periods, with a negative revenue growth rate of -1.35% in the TTM. The company has struggled with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has also decreased slightly over time, reflecting challenges in maintaining cost efficiency.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative stockholders' equity leading to an undefined debt-to-equity ratio in the TTM. This indicates potential solvency issues. The return on equity is negative, reflecting ongoing losses. The equity ratio is also concerning, suggesting a high reliance on debt financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a negative growth rate of -7.77% in the TTM. However, the operating cash flow to net income ratio is positive, indicating that the company generates cash from operations despite net losses. The free cash flow to net income ratio is low, reflecting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.69B	13.11B	14.56B	17.48B	19.69B	20.71B
Gross Profit	4.59B	6.41B	7.41B	9.61B	11.20B	11.78B
EBITDA	1.23B	4.10B	-6.09B	3.58B	8.52B	5.90B
Net Income	-1.65B	-55.00M	-10.30B	-1.55B	2.03B	-1.23B
Balance Sheet
Total Assets	34.29B	33.50B	34.02B	45.58B	57.99B	59.39B
Cash, Cash Equivalents and Short-Term Investments	2.40B	1.89B	2.23B	1.25B	354.00M	406.00M
Total Debt	17.95B	19.12B	20.26B	20.92B	29.37B	32.22B
Total Liabilities	35.46B	33.03B	33.60B	35.14B	46.15B	48.23B
Stockholders Equity	-1.17B	464.00M	417.00M	10.44B	11.84B	11.16B
Cash Flow
Free Cash Flow	1.23B	1.10B	-940.00M	1.72B	3.60B	2.79B
Operating Cash Flow	4.86B	4.33B	2.16B	4.74B	6.50B	6.52B
Investing Cash Flow	-3.50B	-2.83B	-1.20B	5.48B	-2.71B	-3.56B
Financing Cash Flow	-1.60B	-1.85B	-18.00M	-9.31B	-3.81B	-4.25B

Lumen Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUMN, the sentiment is Positive. The current price of 10.52 is above the 20-day moving average (MA) of 8.89, above the 50-day MA of 7.09, and above the 200-day MA of 5.00, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 64.32 is Neutral, neither overbought nor oversold. The STOCH value of 69.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LUMN.

Lumen Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	78 Outperform	$5.00B	11.43	7.38%	5.57%	19.02%	9.26%
PHI	70 Neutral	$4.16B	7.47	27.07%	8.64%	0.35%	19.08%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LUMN	58 Neutral	$11.22B	―	―	―	-4.56%	23.46%
AD	57 Neutral	$4.22B	-160.26	-0.54%	49.61%	-3.65%	-134.04%
TEO	54 Neutral	$5.61B	―	-0.27%	1.71%	3.89%	-107.44%
TDS	49 Neutral	$4.19B	―	-0.81%	0.42%	-5.62%	80.09%

Lumen Technologies Corporate Events

Lumen Technologies’ Earnings Call Highlights Strategic Growth

Lumen Technologies’ recent earnings call painted a picture of optimism and strategic progress, despite some challenges. The company demonstrated significant advancements in financial performance, strategic partnerships, and technological innovations, particularly in the Private Connectivity Fabric (PCF) and Network as a Service (NaaS) segments. While legacy telecom revenue and public sector declines posed challenges, Lumen’s strategic initiatives in AI infrastructure and debt management suggest a promising trajectory toward growth.

Lumen Technologies Faces Uncertainty and Financial Risks Amid Mass Markets Divestiture

Lumen Technologies Inc. faces significant risks associated with its pending divestiture of the Mass Markets fiber-to-the-home business. The completion of this transaction is contingent upon regulatory approvals and other conditions, which may not be met as anticipated. This uncertainty could strain relationships with stakeholders, hinder operational focus, and potentially lead to adverse financial consequences, including impacts on credit ratings and strategic objectives. Even if successful, the divestiture might result in unforeseen costs, operational challenges, and reduced cash flows, posing ongoing risks to the company’s financial health and strategic goals.

Lumen Technologies Reports Strong Q3 Results Amid Transformation

Lumen Technologies Inc., a prominent player in the telecommunications sector, focuses on connecting people, data, and applications through its extensive network services, including AI-driven solutions. In its latest earnings report, Lumen Technologies announced strong third-quarter results, exceeding expectations in revenue, EBITDA, and free cash flow. The company also highlighted significant achievements in its transformation strategy, including a $2.4 billion debt refinancing and $1 billion in new Private Connectivity Fabric deals. Despite reporting a net loss of $621 million, Lumen’s operational cash flow increased to $2.5 billion, and free cash flow rose to $1.7 billion, indicating robust financial health. The company continues to invest in digital innovation, scaling its NaaS platform, and preparing for the sale of its consumer FTTH business to AT&T. Looking ahead, Lumen Technologies remains optimistic about its growth trajectory, with management focusing on modernization initiatives and strategic investments to drive sustainable growth.

Lumen Technologies Reports Strong Q3 2025 Results

On October 30, 2025, Lumen Technologies reported strong third-quarter results, highlighting significant achievements in its transformation journey. The company exceeded expectations in revenue, EBITDA, and free cash flow, while also signing an additional $1 billion in PCF deals, bringing the total to over $10 billion. Despite a reported net loss of $621 million for the quarter, Lumen’s strategic focus on enterprise growth and digital innovation is positioning it for sustainable growth, with key milestones such as debt refinancing and successful ERP implementation contributing to its progress.

The most recent analyst rating on (LUMN) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Lumen Technologies stock, see the LUMN Stock Forecast page.

Lumen Technologies Reprices Credit Facilities to Cut Costs

On September 29, 2025, Lumen Technologies announced the successful repricing of Level 3 Financing’s $2.4 billion credit facilities, reducing annual interest expenses by $24 million. This move, along with raising $425 million in First Lien Notes to refinance higher coupon debt, is part of Lumen’s strategy to reduce debt, extend maturities, and focus on investments in digital networking services for the AI economy, thereby enhancing its financial flexibility and market position.

The most recent analyst rating on (LUMN) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Lumen Technologies stock, see the LUMN Stock Forecast page.

Lumen Technologies Appoints Donald Holt as New CAO

On September 9, 2025, Andrea Genschaw resigned as Chief Accounting Officer and Controller of Lumen Technologies, effective September 23, 2025, to become CFO at another company. Her departure was amicable and aligned with the company’s succession plan. On September 12, 2025, Donald Holt was appointed as her successor, effective the same date. Holt, who has been with the company since 2023, has held various finance roles and will receive a revised compensation package, including salary and incentive increases.

The most recent analyst rating on (LUMN) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Lumen Technologies stock, see the LUMN Stock Forecast page.

Lumen Technologies Completes $425M Note Offering

On September 8, 2025, Level 3 Financing, a subsidiary of Lumen Technologies, completed an offering of $425 million in additional 7.000% First Lien Notes due 2034. The proceeds will be used to redeem existing higher-interest notes and cover related expenses, potentially improving the company’s financial structure by lowering interest obligations and enhancing its debt profile.

The most recent analyst rating on (LUMN) stock is a Hold with a $4.09 price target. To see the full list of analyst forecasts on Lumen Technologies stock, see the LUMN Stock Forecast page.

Lumen Technologies Announces $425M Note Offering

On September 4, 2025, Lumen Technologies announced that its subsidiary, Level 3 Financing, plans to offer an additional $425 million of 7.000% First Lien Notes due 2034 in a private offering. The proceeds will be used to redeem existing notes and cover related expenses. Additionally, Lumen expects to amend its New Credit Agreement to establish a new tranche of term loans and make other adjustments, though this is subject to market conditions.

The most recent analyst rating on (LUMN) stock is a Hold with a $4.09 price target. To see the full list of analyst forecasts on Lumen Technologies stock, see the LUMN Stock Forecast page.

Lumen Technologies Completes $2 Billion Note Offering

On August 18, 2025, Level 3 Financing, a subsidiary of Lumen Technologies, completed a $2 billion offering of 7.000% First Lien Notes due 2034. The proceeds were used to redeem existing notes and reduce interest expenses, aligning with Lumen’s strategy to simplify its capital structure, extend maturities, and enhance financial flexibility. This move is expected to strengthen Lumen’s position in delivering high-performance digital network services, crucial for enterprises and public sector organizations in the AI-driven economy.

The most recent analyst rating on (LUMN) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Lumen Technologies stock, see the LUMN Stock Forecast page.

Lumen Technologies Increases Private Offering to $2 Billion

On August 4, 2025, Lumen Technologies announced that its subsidiary, Level 3 Financing, planned a private offering of $2 billion in First Lien Notes due 2034, an increase from the initially proposed $1.25 billion. The proceeds will be used to redeem existing notes and pay related expenses, impacting the company’s financial structure and stakeholder interests.

The most recent analyst rating on (LUMN) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Lumen Technologies stock, see the LUMN Stock Forecast page.