Earlier in September 2025, Lumen Technologies announced major progress in its multi-year fiber expansion, with construction underway to add 34 million new intercity fiber miles by 2028, bringing its total to 47 million, and implementing network enhancements tailored to support enterprise AI workloads across the U.S.
By deploying next-generation Corning fiber and launching a new private connectivity solution designed specifically for the demands of the AI economy, Lumen aims to deliver ultra-low latency and high-capacity infrastructure meeting up to 97% of U.S. business demand.
Let's explore how Lumen's accelerated nationwide fiber build for AI is shifting the company's investment narrative and growth outlook.
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Lumen Technologies Investment Narrative Recap
To be a Lumen Technologies shareholder today, you have to believe that the company’s multi-billion dollar nationwide fiber expansion, focused on AI and high-capacity networking, can outpace the ongoing decline in legacy service revenues. The recent progress update reaffirms the company’s commitment to supporting enterprise AI workloads and may strengthen its top short-term catalyst, winning long-term hyperscaler and data center contracts, but it doesn’t materially shift the key risk of persistent top-line and EBITDA contraction from shrinking legacy segments.
Among recent developments, Lumen’s collaboration with Palantir stands out for its direct relevance to the AI-driven fiber expansion. The partnership brings advanced data analytics and operational efficiency improvements to Lumen’s infrastructure, potentially amplifying the value delivered to enterprise customers and supporting the company’s efforts to capture higher-margin, recurring revenue streams tied to AI growth.
In contrast, it’s important for investors to be aware of ongoing risks tied to revenue pressures from legacy products and...
Read the full narrative on Lumen Technologies (it's free!)
Lumen Technologies' outlook anticipates $11.8 billion in revenue and $1.5 billion in earnings by 2028. This scenario reflects a 2.7% annual revenue decline and an increase in earnings of $2.7 billion from current earnings of -$1.2 billion.
Uncover how Lumen Technologies' forecasts yield a $5.20 fair value, a 12% downside to its current price.
Exploring Other Perspectives
With 13 fair value estimates from the Simply Wall St Community ranging from US$0.78 to US$17.09 per share, market opinions span a wide spectrum. Keep in mind, concerns persist around whether fiber expansion will outweigh declines in older services, which could influence Lumen’s future revenue trajectory.
