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Lumen Technologies, Inc.
$5.9B
Market Cap
6.6
P/E
13.47
PEG
-2.2%
ROCE
532.6%
ROE
-15.54
D/E
-6.6%
OPM
-48.5%
% from 52W High
40
α RS
🔍 LUMN is showing a high-conviction setup because it matches 3 of 37 tracked screener presets and Sector RRG has Communication Services in the Improving quadrant with the trail still strengthening. Net: Partial signal stack, not a recommendation. ? Conviction RRG
Sources
Conviction 3/37 · Communication Services in Improving quadrant
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🌏 Global Investor Returns
Currency-adjusted total returns for LUMN including FX impact
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📈 Price History
Ratio Health
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By Category
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About

Lumen Technologies, Inc., a networking company, provides integrated products and services to business and mass customers in the United States and internationally.

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📈 Growth Pattern
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⭐ Superinvestors Holding LUMN
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 9.72M $67.6M 0.11% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED Lumen acquires Alkira for $475M; strategic revenue 51% of total in Q1 2026
Revenue & Profitability
Total business revenue declined 3.2% year-over-year to $2.44 billion in Q1 2026. North American enterprise revenue (including wholesale) was down only 0.8% YoY. Adjusted EBITDA (excluding special items) was $849 million, compared to $929 million in the prior year quarter. Free cash flow guidance for 2026 was raised from $1.2-1.4 billion to $1.9-2.1 billion, with Q1 free cash flow of $756 million excluding special items. Digital revenue was $37 million, and PCF revenue was $78 million (including a $32 million delivery milestone).
Outlook
Management sees enterprises facing a huge challenge building AI-driven futures on infrastructure not designed for massive data movement. Demand is increasing for secure, predictable, real-time connectivity across distributed environments. Lumen believes it is uniquely positioned to deliver game-changing capabilities. Adoption metrics are strong: NaaS customers near 2,500, with 25% quarterly adoption growth, 35% active port growth, and 32% active services growth.
Growth Drivers
Key growth drivers include NaaS adoption (30% of customers are repeat purchasers, 20% of new Q1 adopters were brand new to Lumen), PCF deals totaling nearly $13 billion announced to date, and digital revenue from Multi-Cloud Gateway and future Alkira integration. Landmark wins included a global financial services firm (600+ site NaaS upgrade) and a global logistics firm (300 sites). Management believes Lumen is taking market share, especially in North America enterprise (down only 0.8% YoY).
Balance Sheet & CapEx
Capital expenditures excluding special items were $859 million in Q1 2026, in line with expectations and full-year guidance, including about $161 million related to PCF deals. The company announced the acquisition of Alkira for $475 million in cash, expected to close in Q3 2026. Lumen expects the Alkira transaction to reduce total aggregate CapEx by $100-200 million in coming years.
Margins
Adjusted EBITDA declined year-over-year from $929 million to $849 million in Q1 2026, reflecting expected revenue trends, higher healthcare costs, and the fiber-to-home sale. Management estimates the Alkira transaction will be immaterial to financials and neutral to margins in the near term but accretive as the platform scales. No specific margin guidance was provided.
Key Risks
Risks flagged include: cannibalization of legacy revenue by new digital services (though currently minimal as customers add new services without cutting old ones); lumpy free cash flow quarter to quarter; long decision cycles in the public sector; and variability in quarterly digital revenue due to early adoption curve. The company is managing these through transparent disclosure and on-time PCF builds.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-04
Q2 2026 results met expectations, with strategic revenue up 14% year-over-year and now 53% of the mix. Digital and NaaS adoption accelerated, while legacy revenue declined 15%. The Alkira acquisition strengthens digital growth prospects, with further upside expected.
Q1 2026 Q1 2026 2026-05-05
Solid Q1 results with revenue and EBITDA in line with expectations, strategic revenue rising to 51% of total. Announced Alkira acquisition to accelerate digital transformation and raised 2026 free cash flow guidance to $1.9–$2.1 billion.
Q4 2025 Q4 2025 2026-02-03
Completed a major divestiture, reduced debt and capital intensity, and improved cost structure, positioning for EBITDA growth in 2026 and business revenue growth by 2028. Strategic revenues now comprise over half of enterprise mix, with strong NaaS and PCF adoption.
Q3 2025 Q3 2025 2025-10-30
Q3 2025 saw revenue, EBITDA, and free cash flow beat expectations, with strong growth in digital and enterprise segments. Major debt refinancing and strategic partnerships position the company for future growth, with $900M–$1.1B incremental revenue targeted by 2028.
Q2 2025 Q2 2025 2025-07-31
Announced $5.75B sale of consumer fiber business, raised free cash flow and EBITDA guidance, and strengthened the balance sheet with debt refinancing. Revenue declined but Grow products and fiber broadband showed strong growth. Adjusted EBITDA inflection expected in 2026.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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