- Lumen stated that it has been selected to expand Anthropic’s fiber network across North America.
- The company will introduce a new revenue reporting framework from the first-quarter of fiscal 2026.
- Lumen said it remains on track to reach 47 million fiber miles by the end of 2028.
Shares of Lumen Technologies (LUMN) jumped more than 5% in pre-market trading on Wednesday after the company said it has been selected to expand Anthropic’s fiber network across North America and outlined plans to drive EBITDA margin growth through 2030.
Lumen said the Anthropic partnership is part of its nearly $13 billion in total Private Connectivity Fabric (PCF) deals it has secured to date. Under the agreement, Anthropic has selected Lumen to develop a high-capacity network to power its AI research and operations.
Expanding EBITDA Margins By 2030
The company outlined several multi-year financial goals. It aims to expand adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margins from 27.1% in 2025 to the mid-30% range by 2030.
Lumen also plans to boost free cash flow through higher margins, lower capital intensity, and revenue growth, and expects business segment revenue to return to growth in 2028. Additionally, the company will introduce a new revenue reporting framework. Starting in the first quarter of 2026, Lumen will report revenue by products and services to better reflect its enterprise-focused strategy, it stated.
“Our objective is clear: accelerate investment in AI and our digital future, and where it drives the highest returns to deliver shareholder value,” said CFO Chris Stansbury.
Lumen stated it remains on track to reach 47 million fiber miles by the end of 2028. The company plans to expand its network to about 58 million miles by 2031, backed by $2.5 billion in new PCF agreements.
Shares Fall Since Q4 Results
LUMN stock has been under some selling pressure, declining more than 16% since reporting its fourth-quarter earnings earlier this month. Fourth-quarter (Q4) revenue fell to $3.04 billion from $3.3 billion, while diluted earnings per share, excluding special items, came in at $0.23, up from $0.09 a year earlier.
For fiscal 2026, the company forecast adjusted core profit between $3.1 billion and $3.3 billion, below the $3.37 billion consensus estimate, and added that it remains on track to achieve $700 million in cost savings in 2026 and $1 billion in 2027.
How Did Stocktwits Users React?
Retail sentiment on Stocktwits turned 'neutral' from ‘bearish’ over the past 24 hours.
Earlier, one user said that the stock has “never looked this good as it does today.”
LUMN shares have gained more than 65% over the past year.
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