Lumen Technologies (LUMN) Stock Forecast & Price Target

Lumen Technologies demonstrates a positive financial outlook, reporting revenue of $3,087 million, which exceeded consensus estimates by approximately 1.5%, with strong public sector growth of 11% year-over-year. The company's focus on enterprise services is further underscored by a 10.5% year-over-year increase in North American enterprise revenue, notably driven by products like dark fiber and connectivity solutions. Additionally, Lumen's Network as a Service (NaaS) platform has expanded to over 1,500 enterprise customers since its January 2024 launch, contributing to a stronger overall financial position as indicated by significant interest savings amounting to approximately $235 million year-to-date.

Lumen Technologies experienced a decline in Business Segment revenue, contracting by 3.2% year-over-year, despite some positive performance in the public sector and large enterprise revenues. The company closed the third quarter of 2025 with a net leverage of approximately 4.3x, which, while improved from the previous quarter, signals ongoing financial stress as management anticipates continued organic revenue declines. Additionally, the expectation of significant transformation costs and persistent declines in fiber penetration highlights the challenges ahead for sustaining revenue growth and operational stability.