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Lumen Technologies (LUMN) AI Stock Analysis
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Lumen Technologies
(NASDAQ:LUMN)
The score is held back primarily by weak financial quality (declining revenue, ongoing losses, and very high leverage/negative equity) and bearish technical trend signals. These are partially offset by solid near-term cash generation and a more constructive earnings-call outlook highlighting accelerating strategic mix shift and adoption in newer services.
Lumen Technologies (LUMN) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $5.03B
- Dividend Yield
- ―
- Average Volume (3M)
- 13.91M
- Price to Earnings (P/E)
- -4.8
- Beta (1Y)
- 1.86
- Revenue Growth
- -7.74%
- EPS Growth
- 13.54%
- Country
- US
- Employees
- 24,000
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Telecommunications Services
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 internat...
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 re...
Lumen Technologies Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Cash flow is the main strength (strong operating cash flow and positive free cash flow), but it is outweighed by declining revenue, ongoing losses, and a stressed balance sheet with very high debt and negative equity, raising refinancing and durability risk.
Income Statement
28NegativeBalance Sheet
12Very NegativeCash Flow
62Positive| 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 | 8.16B |
| 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
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUMN, the sentiment is Negative. The current price of 4.88 is below the 20-day moving average (MA) of 4.92, below the 50-day MA of 5.73, and below the 200-day MA of 7.26, indicating a bearish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 43.78 is Neutral, neither overbought nor oversold. The STOCH value of 90.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Latest Risks Added
1 New RiskLumen Technologies Peers Comparison
Overall Rating
VZ67Neutral
CHTR63Neutral
CMCSA63Neutral
T63Neutral- LUMN50Neutral
CCOI44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| VZ | 67Neutral | $185.39B | 11.41 | 15.73% | 6.29% | 1.38% | -16.44% |
| CHTR | 63Neutral | $19.64B | 2.86 | 30.43% | ― | -1.50% | 4.45% |
| CMCSA | 63Neutral | $82.45B | 7.35 | 12.32% | 5.68% | -0.25% | -47.58% |
| T | 63Neutral | $144.23B | 11.57 | 11.95% | 5.18% | 3.51% | -39.83% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| LUMN | 50Neutral | $5.03B | -4.77 | -52.11% | ― | -7.74% | 13.54% |
| CCOI | 44Neutral | $345.19M | -3.79 | 140.52% | 1.19% | -4.54% | 79.01% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| LUMN | Lumen Technologies Inc. | 4.88 | -6.95 | -58.75% | |
| T | At&t Inc | 21.41 | -2.00 | -8.56% | |
| CHTR | Charter Communications | 111.49 | -110.71 | -49.82% | |
| CCOI | Cogent Communications | 6.74 | -33.81 | -83.38% | |
| CMCSA | Comcast Corp | 23.22 | -0.77 | -3.21% | |
| VZ | Verizon Communications | 44.73 | 7.72 | 20.87% |
Lumen Technologies Corporate Events
Lumen Technologies Moves Stock Listing to Nasdaq Exchange
PositiveOn Sept. 25, 2026, Lumen Technologies said its board and that of its subsidiary Qwest Corporation had approved a voluntary transfer of the listings for Lumen’s common stock and Qwest’s 6.500% notes due 2051 and 6.750% notes due 2052 from...
Lumen Reports Q2 Results Highlighting Digital Services Pivot
NeutralOn 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 committees...
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.
Date of analysis: Oct 16, 2026