Concerns about the prospects for Lumen Technologies Inc. (NYSE: LUMN) have lingered. However, recent quarterly results suggest a positive shift in its financial health, driven by a focus on strengthening its balance sheet and improving liquidity through debt reduction. The global telecommunications company has also focused on improving customer satisfaction. Yet, it still faces challenges with declining revenue and with free cash flow.
The Louisiana-based company has been around a long time, so it was a surprise to some when the stock was at risk of being delisted from the New York Stock Exchange in 2023, after its price per share briefly dipped below $1.00. Those struggles continued into 2024, but by mid-summer, the stock surged as demand for its high-speed fiber-network solutions began to grow. The company secured deals with Microsoft and other leading tech companies that require increased connectivity between their data centers due to the explosive growth of artificial intelligence (AI).
Lumen partnered with IBM to unlock scalable AI for businesses and with Google Cloud to provide advanced cloud and network solutions to meet the growing demands of AI workloads. Lumen strengthened its financial position and freed up capital for long-term growth by refinancing its term loans and selling its fiber-to-the-home business to AT&T. CEO Kate Johnson projected the company’s return to growth by 2029.
24/7 Wall St. has performed analysis to determine if the company is fundamentally flawed, or if AI demand and strategic partnerships will be enough to see its stock continue on its bull run.
Lumen’s Recent Success
From July 1, 2024, to September 30, 2024, the shares went on a tear. The stock, which was trading at just $1.11 at the start of the third quarter of 2024, surged 540% by the end of the third quarter. That was quite the reversal, given how the stock has slid 83.4% since hitting its all-time high of $49.45 on June 1, 2007. But market drivers are very different today, and even with the emphasis on AI development, Lumen stock is struggling to maintain that bounce.
| Year | Share Price | Revenue* | Net Income* |
| 2015 | $25.87 | $17.900 | $0.795 |
| 2016 | $24.12 | $17.470 | $0.744 |
| 2017 | $16.99 | $17.656 | $0.356 |
| 2018 | $14.90 | $23.433 | $0.964 |
| 2019 | $13.42 | $22.401 | $5.157 |
| 2020 | $9.75 | $20.712 | $1.351 |
| 2021 | $12.55 | $19.687 | $2.019 |
| 2022 | $5.22 | $17.478 | $1.713 |
| 2023 | $1.83 | $14.557 | $7.334 |
| 2024 | $5.31 | $13.108 | −$0.550 |
| 2025 | $7.77 | $12.402 | −$1.739 |
*Revenue and net income in $billions
Over the past decade, Lumen’s revenue decreased by more than 30%, while net income fell by over 318%. As the company battled through its dated infrastructure and a significant debt load, shares fell significantly from $25.87 in 2015 to $7.77 in 2025. However, Lumen has been able to better balance its books, with total assets and total liabilities nearly aligned in 2025 to the tune of $34.342 billion and $35.459 billion, respectively.
Three Key Drivers of Lumen Stock Performance
As the 57-year-old tech company looks forward to the rest of the decade, 24/7 Wall St. has identified three key drivers that are likely to have a positive impact on Lumen Technologies’ growth metrics and stock performance through 2030.
AI-Focused Fiber Infrastructure Expansion
Lumen is transforming into an AI infrastructure provider by focusing on high-speed fiber connectivity for AI and cloud services. A multi-billion-dollar program is underway to expand its fiber network, adding 34 million fiber miles by the end of 2028. Securing long-term contracts with major tech companies for this network is expected to generate high-margin, recurring revenues and improve overall margins.
Debt Restructuring and Balance Sheet Repair
Managing its substantial debt is critical for Lumen’s future. Through asset sales and refinancing high-interest debt, the company aims to significantly reduce its gross debt to $13.2 billion and cut annual interest expenses by nearly half. This strategy is designed to provide greater financial flexibility for growth investments, boost investor confidence, and transition the company toward stable growth.
Return to Revenue and Earnings Growth
Achieving top-line and earnings growth is essential for sustained stock performance. Despite ongoing declines in older services, management anticipates that new digital and AI-related revenues will begin to outweigh these declines in 2026. Lumen projects growth in its business segment revenues in 2028, leading to overall company revenue growth in 2029. This is expected to result in positive earnings per share and a potential increase in market valuation.
How Lumen’s Next Few Years Could Play Out
Analysts currently have a consensus median one-year price target for Lumen stock of $7.64, which is less than the current price. At present, they see no upside potential. Of 12 analysts covering the stock, only one recommends buying shares.
By the end of 2026, 24/7 Wall St.’s forecast for Lumen shares is just $5.62, which represents downside potential of more than X%, based on an annualized EPS of −$0.26.
However, beginning in 2027 and continuing through 2030, we expect Lumen to post positive EPS, growing from $0.06 to $0.76, based on revenue growth from $13.61 billion in 2027 to $14.8 billion in 2030.
| Year | Revenue* | EPS |
| 2026 | $13.45 | −$0.23 |
| 2027 | $13.61 | $0.06 |
| 2028 | $13.72 | $0.43 |
| 2029 | $14.14 | $0.42 |
| 2030 | $14.38 | $0.76 |
*Revenue in $billions
By the conclusion of 2030, 24/7 Wall St. estimates that Lumen Technologies stock will be trading for $9.88 per share. Here is how it gets there:
| Year | Price Target | Potential Upside |
|---|---|---|
| 2026 | $5.62 | −29.4% |
| 2027 | $5.79 | −27.3% |
| 2028 | $5.81 | −27.0% |
| 2029 | $5.67 | −28.8% |
| 2030 | $9.88 | 24.1% |
Up 80% Over the Past Year, Can Lumen Technologies Keep the Momentum Going
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