Lumen outlines strategy to become trusted network for AI economy

DENVER - Lumen Technologies (NYSE:LUMN), whose stock has surged over 26% in the past six months according to InvestingPro data, detailed its transformation plan to become "The Trusted Network for AI" during its 2025 Industry Analyst Forum, highlighting financial progress and upcoming product innovations. The company maintains a Fair overall financial health score despite recent challenges.

CEO Kate Johnson outlined three strategic pillars: building network infrastructure for the AI economy, transforming telecom services into a digital platform, and creating a connected ecosystem with technology partners.

"Lumen is determined to lead the transformation of our industry to meet the demands of the AI economy," Johnson said during the event.

The company plans to add 34 million new fiber miles by the end of 2028, bringing its total to 47 million intercity and metro miles. Lumen currently delivers 400G connectivity with plans to scale to 1.6 terabits in the future.

Following the anticipated first-half 2026 close of Lumen’s mass-market fiber sale to AT&T, the company projects it will have reduced gross debt by over 35% to $13.2 billion and cut annual interest expense by nearly 50% to approximately $700 million.

Chief Financial Officer Chris Stansbury said 2026 is expected to mark an "inflection point" as new digital revenues begin to outpace legacy declines. The company projects business segment revenue growth in 2028 and overall top-line growth in 2029.

Upcoming product launches include Lumen Fabric Port and Multi-Cloud Gateway in Q4 2025, followed by Lumen Connect in Q1 2026. The company also plans to debut its first branded network interface device in the first half of 2026.

"By cloudifying our fiber assets into software and disrupting cloud economics, we’re giving customers the ability to turn up services within minutes," said Chief Technology and Product Officer Dave Ward.

The information in this article is based on a company press release statement. While Lumen’s stock has shown strong momentum, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors can access 13 additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research report, available alongside 1,400+ other top US stocks.

In other recent news, Lumen Technologies announced the completion of a $425 million notes offering through its subsidiary, Level 3 Financing, Inc. The proceeds from this offering will be used to refinance existing debt, specifically to redeem $373 million of its 10.750% First Lien Notes due in 2030. This financial move is part of Lumen’s broader efforts to manage its debt effectively. Additionally, Lumen is making strides in expanding its network infrastructure to accommodate the growing demand for AI workloads. The company plans to add 34 million intercity fiber miles by 2028, more than doubling its current U.S. network capacity. In another development, Lumen launched Wavelength RapidRoutes, a service offering 100G and 400G connections with a 20-day delivery SLA. This new service aims to address the connectivity challenges faced by enterprises by streamlining the provisioning process. These initiatives reflect Lumen’s ongoing efforts to enhance its service offerings and improve financial stability.

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