Lumen Technologies (LUMN) Stock Forecast & Price Target

Lumen Technologies has demonstrated strong financial performance, reporting revenue of $3,087 million, which exceeded consensus estimates by approximately 1.5%, with notable growth in the public sector segment at 11% year-over-year. Significant developments include an 18.4% year-over-year increase in fiber broadband revenue, which now constitutes 49% of total broadband revenue, and a 10.5% growth in North American enterprise channels, highlighting the company's strategic transition towards enterprise services. Additionally, Lumen's Network as a Service (NaaS) platform has rapidly expanded to over 1,500 enterprise customers, coupled with annual interest savings of $135 million, contributing to its improved financial metrics and cash flow outlook.

Lumen Technologies experienced a 3.2% year-over-year decline in Business Segment revenue, indicating ongoing challenges despite stronger performance in the public sector and large enterprise revenues. The company’s exit from the third quarter of 2025 with a net leverage ratio of approximately 4.3x, down from 4.5x in the prior quarter, reflects an ongoing struggle to manage debt in conjunction with anticipated further organic revenue declines. Additionally, guidance for the upcoming quarter includes expectations for continued revenue shrinkage, alongside an exclusion of approximately $300 million in transformation costs, undermining confidence in the company's financial trajectory despite a reported adjusted free cash flow significantly exceeding expectations.