| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 94 | — | 17.8x | Top tier | |
Growth | 13 | -7.7% | 7.1% | Bottom tier | |
Quality | 58 | 3.7% | 4.5% | Around median | |
Safety | 26 | 4.5x | 2.6x | Bottom tier | |
Capital Return | 52 | 0.01% | 2.12% | Around median | |
Momentum | 41 | 33.0% | 2.9% | Around median | |
Sentiment | 91 | 6 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Lumen Technologies is an infrastructure and telecommunications company reshaping its business around AI-ready enterprise networks. The company combines its fiber network, programmable network, Lumen Connect platform, and Alkira solutions for secure connectivity between clouds and data centers, generating revenue from services such as NaaS, 100 and 400 gigabit connectivity, DIA, dark fiber, and IP, alongside traditional businesses including voice and private lines. It also generates PCF revenue by monetizing unused conduit and fiber assets, while working to discontinue the sale of voice and telecommunications products to enterprises and redirect capital toward higher-growth, higher-margin digital services.
In Q2 fiscal 2026, total business revenue was $2.44 billion, down 1.8% year over year, while North America business revenue declined 1.6% and North America enterprise revenue excluding wholesale declined 0.2%. Strategic revenue grew 14% year over year and accounted for 53% of business revenue, compared with 51% in Q1 fiscal 2026 and 45% in Q2 fiscal 2025, while legacy revenue declined 15%. Digital revenue was $39 million, and PCF revenue was approximately $91 million, including about $36 million from a California milestone completion that was brought forward from the second half of fiscal 2026.
Adjusted earnings before interest, taxes, depreciation, and amortization, excluding special items, were $802 million in Q2 fiscal 2026, compared with approximately $877 million in Q2 fiscal 2025, and free cash flow excluding special items was $327 million. The latest available EDGAR statements, for Q1 fiscal 2026, showed revenue of $2.9 billion and gross profit of $1.5 billion, equivalent to a calculated gross margin of approximately 51.7%, with a net loss of $200 million and a loss per share of $0.20. On a trailing-twelve-month basis ending in fiscal 2026, the company recorded revenue of $12.9 billion, gross profit of $6.5 billion, and a net loss of $1.7 billion.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on LUMN is Hold, with an average price target of $8 and matching high and low targets of $8; this convergence does not provide a broad range of analytical scenarios. The target is below the 52-week high of $11.95 and above the low of $4.57, while no positive price-to-earnings ratio is available due to a net loss of $1.7 billion during the trailing twelve months ending in fiscal 2026. Therefore, the valuation rests on achieving the shift toward strategic and digital revenue and improving margins and cash flow, weighed against the risks of continued contraction in legacy revenue and accounting losses.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
The main driver is the mix shift from legacy voice and private lines to NaaS, 100 and 400 gigabit connectivity, and AI-related digital services. In Q2 fiscal 2026, strategic revenue grew 14% year over year and accounted for 53% of business revenue, compared with 45% a year earlier. Sales of 100 and 400 gigabit connectivity increased approximately 35%, while the number of NaaS customers surpassed 3,000. However, digital revenue remained at only $39 million, so the operational progress has not yet translated into total revenue growth.
Lumen closed the Alkira transaction in July 2026 and integrated its offering into Lumen Connect to provide a single cloud-based control point for secure connectivity between buildings, data centers, and public clouds. The company plans to complete most of the technical integration within 18 months of the August 4, 2026 call and has trained approximately 4,000 employees on the value proposition. Existing deployments showed Koch Industries reducing the setup time for a multicloud network hub from eight months to one day, and connecting more than 1,400 Michaels locations to Google Cloud within weeks. However, management said Alkira's revenue and cost contribution was immaterial and did not provide a standalone financial outlook for it.
Yes, the number of NaaS customers surpassed 3,000 in Q2 fiscal 2026. New-customer adoption grew 22% quarter over quarter, active ports rose 34%, and active services increased 29%. More than 20% of first-time adopters were entirely new customers to Lumen, indicating new-business acquisition rather than merely replacing legacy services. The crucial financial next step remains increasing the number of services purchased by each customer and converting this adoption into growth faster than the $39 million digital revenue base.
Total revenue declined 9.3% year over year in Q2 fiscal 2026 despite strategic revenue growth, while legacy services declined 15.1%. Adjusted earnings before interest, taxes, depreciation, and amortization fell to $802 million from approximately $877 million in the comparable quarter. EDGAR data for Q1 fiscal 2026 showed a net loss of $200 million, while the trailing-twelve-month loss was $1.7 billion. Q2 fiscal 2026 results also included approximately $36 million from a California milestone completion that was brought forward from the second half.
On August 4, 2026, management reaffirmed its expectation for free cash flow of between $1.9 billion and $2.1 billion for fiscal 2026. Free cash flow excluding special items was $327 million in Q2 fiscal 2026, while capital expenditures excluding special items were approximately $780 million, including about $300 million related to PCF transactions. The company targets annual savings of $700 million upon exiting fiscal 2026 and more than $1 billion upon exiting fiscal 2027. However, management noted that adjusted earnings before interest, taxes, depreciation, and amortization are historically approximately $100 million lower in Q3 than in Q2 for seasonal reasons.
The analyst consensus is Hold, with an average price target of $8 and the high and low targets at the same level. This target lies between the 52-week low of $4.57 and the high of $11.95, but is approximately 33% below that high. No positive price-to-earnings ratio is available because the net loss for the trailing twelve months ending in fiscal 2026 was $1.7 billion. Accordingly, the valuation case depends on strategic revenue, NaaS, and Alkira successfully offsetting the contraction in legacy services and converting cash flow into sustainable profitability.
