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Lumen Technologies
(NYSE:LUMN)
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Rating:50Neutral
Price Target:
$7.00
▲(18.85% Upside)
Action:Reiterated
Date:08/05/26
Overall score is held back primarily by weak financial quality (declining revenue, ongoing losses, and high leverage with negative equity), with technicals also reflecting a longer-term downtrend. The latest earnings call provides an offsetting positive signal via improving strategic mix and adoption metrics plus reaffirmed guidance, but valuation support is limited given negative earnings and no dividend yield provided.
Positive Factors
Strategic revenue mix
The increasing share of strategic services shows a measurable shift away from slower legacy offerings toward higher-growth networking products. If sustained, this mix change can improve customer relevance, support stronger pricing and create a more durable foundation for future revenue quality.
Negative Factors
Revenue and EBITDA decline
Continuing top-line contraction and lower adjusted EBITDA indicate that Lumen’s strategic transformation has not yet offset declines across the existing business. Persistent pressure on revenue and operating earnings could constrain investment capacity and delay the benefits of the newer service mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic revenue mix
The increasing share of strategic services shows a measurable shift away from slower legacy offerings toward higher-growth networking products. If sustained, this mix change can improve customer relevance, support stronger pricing and create a more durable foundation for future revenue quality.
Read all positive factors
Lumen Technologies (LUMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.98B
Dividend Yield9.72%
Average Volume (3M)13.45M
Price to Earnings (P/E)―
Beta (1Y)1.69
Revenue Growth-7.74%
EPS Growth13.54%
CountryUS
Employees24,000
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-1.02
Shares Outstanding1,031,445,400
10 Day Avg. Volume12,472,374
30 Day Avg. Volume13,445,393
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-6.92
Price to Sales (P/S)0.62
P/FCF Ratio20.83
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$7.86Price Target Upside33.40% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)-0.86
Revenue Forecast (FY)$11.11B
Lumen Technologies Business Overview & Revenue Model
Company Description
Lumen Technologies, Inc. functions as an infrastructure-driven technology and telecommunications provider, offering a diverse array of integrated solutions to both commercial clients and residential customers throughout the United States and inter...
How the Company Makes Money
Lumen makes money primarily by selling recurring telecommunications and network services under contracts and subscriptions, plus usage-based charges on certain connectivity products and one-time fees for installation and professional services. Key...
Lumen Technologies Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a positive strategic narrative: management presented clear evidence of a transformation toward digital, platform-based services with strong adoption signals (NaaS, 100/400G waves, strategic revenue up 14% YoY and now 53% of business). Cash flow remains positive and the company is executing on modernization, asset monetization (PCF) and operational simplification. Near-term financials showed modest revenue and EBITDA declines and notable special items, and digital revenue is still small, but management framed these as expected transition effects and emphasized pathway to higher-margin growth (including Alkira upside and 80% adjusted-EBITDA-margin intent for incremental digital services). Given the scope and pace of strategic wins and adoption metrics outweighing the near-term financial headwinds, the overall tone is constructive.Positive Updates
Alkira Acquisition and Integration
Closed Alkira in early July; Alkira integrated into Lumen Connect to provide a cloud-native multi-cloud / AI connectivity capability. Nearly 4,000 employees trained on Alkira; management targeting most of Lumen Connect–Alkira technical integration within 18 months and earlier digital experiences for existing customers (starting with DIA). Alkira seen as upside to prior Investor Day digital targets.
Negative Updates
Overall Revenue Decline
Total business revenue declined 1.8% year-over-year to $2.44 billion in Q2; North America total business revenue down 1.6% YoY and North American enterprise (ex-wholesale) down only 0.2% YoY, indicating continued near-term top-line pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Alkira Acquisition and Integration
Closed Alkira in early July; Alkira integrated into Lumen Connect to provide a cloud-native multi-cloud / AI connectivity capability. Nearly 4,000 employees trained on Alkira; management targeting most of Lumen Connect–Alkira technical integration within 18 months and earlier digital experiences for existing customers (starting with DIA). Alkira seen as upside to prior Investor Day digital targets.
Read all positive updates
Company Guidance
Management reiterated that Q2 results were in line with expectations and reaffirmed its full‑year framework while promising updated 2027 guidance to quantify Alkira upside; key Q2 metrics: total business revenue $2.44B (down 1.8% YoY; North America down 1.6%; North American enterprise down 0.2%), strategic revenue +14% YoY and now 53% of total (vs 51% in Q1 and 45% a year ago), digital revenue $39M, PCF revenue ~$91M (including ~$36M California milestone) tied to $13B of PCF deals, adjusted EBITDA (ex specials) $802M (vs ~$877M LY) with $204M of special items, CapEx (ex specials) ~$780M (including ~$300M for PCF), PCF cash received ~$476M, free cash flow (ex specials) $327M; strong operational metrics included NaaS customers >3,000 with new adoption +22% QoQ, >20% of first‑time adopters new to Lumen, active ports +34% QoQ and active services +29% QoQ, 100/400G wave revenue +~11% YoY and wave sales +~35% YoY, while M&S savings are on track to deliver ~$700M exiting this year and ~$1B next year and management noted normal Q3 seasonality (~$100M EBITDA decline vs Q2).Lumen Technologies Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
12
Very Negative
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.83B | 12.40B | 13.11B | 14.56B | 17.48B | 19.69B |
| Gross Profit | 5.66B | 5.76B | 6.41B | 7.41B | 9.61B | 11.20B |
| EBITDA | 2.24B | 1.32B | 4.10B | -6.09B | 3.58B | 8.52B |
| Net Income | -1.02B | -1.74B | -55.00M | -10.30B | -1.55B | 2.03B |
Balance Sheet | ||||||
| Total Assets | 30.78B | 34.34B | 33.50B | 34.02B | 45.61B | 57.99B |
| Cash, Cash Equivalents and Short-Term Investments | 1.88B | 1.00B | 1.89B | 2.23B | 1.25B | 354.00M |
| Total Debt | 13.49B | 17.71B | 19.12B | 21.30B | 22.00B | 31.17B |
| Total Liabilities | 32.27B | 35.46B | 33.03B | 33.60B | 35.24B | 46.15B |
| Stockholders Equity | -1.49B | -1.12B | 464.00M | 417.00M | 10.37B | 11.84B |
Cash Flow | ||||||
| Free Cash Flow | 837.00M | 371.00M | 1.10B | -940.00M | 1.72B | 3.60B |
| Operating Cash Flow | 5.37B | 4.74B | 4.33B | 2.16B | 4.74B | 6.50B |
| Investing Cash Flow | 493.00M | -4.30B | -2.83B | -1.20B | 5.48B | -2.71B |
| Financing Cash Flow | -5.55B | -1.32B | -1.85B | -18.00M | -9.31B | -3.81B |
Lumen Technologies Technical Analysis
Positive
5.89
Price Trends
6.48
Positive
7.79
Negative
7.74
Negative
Market Momentum
0.01
Negative
57.04
Neutral
87.56
Negative
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 5.89 is below the 20-day moving average (MA) of 6.31, below the 50-day MA of 6.48, and below the 200-day MA of 7.74, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 87.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LUMN.
Lumen Technologies Risk Analysis
Lumen Technologies disclosed 41 risk factors in its most recent earnings report. Lumen Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lumen Technologies Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $208.32B | 13.06 | 15.52% | 5.57% | 1.38% | -10.78% | |
76 Outperform | $175.97B | 8.47 | 19.48% | 4.32% | 2.63% | 72.35% | |
72 Outperform | $94.00B | 8.60 | 12.04% | 4.98% | 0.58% | -48.94% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $26.62B | 3.90 | 30.43% | ― | -1.50% | 4.45% | |
50 Neutral | $6.98B | -6.62 | -52.11% | 9.72% | -7.74% | 13.54% | |
47 Neutral | $514.72M | -5.65 | 140.52% | 0.80% | -4.54% | 79.01% |
* Communication Services Sector Average
LUMN
Lumen Technologies
6.77
1.65
32.23%
T
AT&T
25.68
-1.92
-6.96%
CHTR
Charter Communications
151.99
-111.89
-42.40%
CCOI
Cogent Comms
10.05
-26.64
-72.60%
CMCSA
Comcast
26.49
-3.89
-12.80%
VZ
Verizon
50.14
9.59
23.65%
Lumen Technologies Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A Transactions
Lumen Reports Q2 Results Highlighting Digital Services Pivot
Neutral
Aug 4, 2026
On August 4, 2026, Lumen Technologies appointed John Hinshaw as an independent director to fill a board vacancy, with his term running until the 2027 annual meeting and roles on the nominating and corporate governance and risk and security committ...
Business Operations and StrategyDelistings and Listing ChangesPrivate Placements and Financing
Lumen and Qwest Complete Exchange Offers, Boost Flexibility
Positive
Jun 11, 2026
On June 11, 2026, Lumen Technologies and its subsidiary Qwest Corporation settled previously announced exchange offers and related consent solicitations for certain existing Qwest notes. As part of the transaction, Qwest issued $1,002,320,075 of n...
Business Operations and StrategyDelistings and Listing ChangesPrivate Placements and FinancingRegulatory Filings and Compliance
Lumen and Qwest Complete Exchange Offer, Simplify Reporting
Neutral
Jun 10, 2026
On June 10, 2026, Lumen Technologies and its wholly owned subsidiary Qwest Corporation reported the expiration and final results of Qwest’s exchange offers and related consent solicitations for its 6.5% notes due 2056 and 6.75% notes due 205...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.