Lumen Technologies, Inc. (LUMN) AI Stock Analysis

Lumen Technologies, Inc. provides integrated networking products and services to business and mass customers across the United States and internationally. It operates through two segments: Business and Mass Markets. Offerings include dark fiber and conduit, edge cloud, internet protocol (IP), voice over IP, managed security, software-defined wide area networks, unified communications and collaboration, optical services, ethernet, and VPN data network services. The company also offers legacy services such as time division multiplexing voice, private line, SONET-based ethernet, conferencing, and legacy data hosting. For residential and small business customers, Lumen provides broadband and voice services under the Lumen, CenturyLink, Black Lotus Labs, and Quantum Fiber brands.

Lumen has experienced sustained top-line contraction, with revenue decreasing from $19.69B in FY2021 to $17.48B in FY2022, $14.56B in FY2023, $13.11B in FY2024, and $12.40B in FY2025, generating a 5-year revenue CAGR of -9.7%. Operating margin turned negative, moving from 21.8% in FY2021 to -6.5% in FY2025 as gross margin compressed from 56.9% to 46.5%. Annual net income dropped from $2.03B in FY2021 to -$1.74B in FY2025, after a net loss of -$10.30B in FY2023. Over the trailing twelve months, revenue reached $11.83B with an operating margin of -2.9% and EPS of -$1.02. In the quarter ended June 30, 2026, revenue fell 9.3% year-over-year while earnings fell 88.9%.

As of June 30, 2026, Lumen held $1.88B in cash and short-term investments against $13.49B in total debt, resulting in net debt of $11.62B. Shareholders equity stood at -$1.49B alongside $30.78B in total assets, and the current ratio was 0.96. During FY2025, operating cash flow reached $4.74B and free cash flow was $371.0M after capital expenditures of $4.37B. Cash uses included dividends paid of $1.0M in FY2025, while the 5-year share count change was -1.1%.

With a market capitalization of $4.80B and an enterprise value of $17.94B, Lumen trades at a forward P/E of 98.0x, above the 14.1x median of its US-listed Communication Services peers. The stock trades at an EV to EBITDA ratio of 7.8x, lower than the peer median of 10.0x, and a price to sales ratio of 0.4x versus the peer median of 0.8x. Over the past 12 months, Lumen shares fell 33.8%, underperforming the S&P 500 (SPY) return of 16.8%. Over 5 years, the stock declined 58.1%, while the S&P 500 gained 83.0%.

Wall Street analysts hold 0 Strong Buy, 1 Buy, 8 Hold, 1 Sell, and 0 Strong Sell ratings on the stock. The mean price target of $7.49 reflects a 61.1% upside from the last closing price of $4.65 on October 16, 2026. For the fiscal year ending December 31, 2026, consensus estimates call for revenue of $11.13B and EPS of -$0.83, an EPS decline of 541.4%. Lumen beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of Lumen Technologies, Inc. (LUMN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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