Is Lumen Technologies Stock Your Ticket to Becoming a Millionaire?
Summarize this article with:
By Robert Izquierdo – Feb 22, 2026 at 7:00PM ESTKey PointsWhile some companies are bound to see AI disrupt their business models, Lumen Technologies is positioning itself for the future.The company is undertaking a transformation to focus on AI networks.Lumen's 2025 revenue fell year over year to $12.4 billion as it moves away from servicing consumers.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: LUMNLumen TechnologiesMarket Cap$8.0BToday's Changeangle-down(-2.49%) $0.20Current Price$7.83Price as of February 20, 2026 at 4:00 PM ETThe telecommunications giant's strategic shift capitalizes on growing AI opportunities.Artificial intelligence (AI) is a transformative technology poised to disrupt industries. But companies serving as the "picks and shovels" of the AI gold rush are well-positioned to grow as the market expands. These organizations provide key services to the AI sector, and thereby are more resilient to the unpredictable changes to come. One such company is Lumen Technologies (LUMN 2.49%). It's pivoting away from consumer fiber-optic networks to focus on essential AI business infrastructure. Given Lumen's strategic shift, could investing in the stock now help you become a millionaire in the long term? After all, Wall Street approves of its new direction. Lumen shares are up about 60% over the past 12 months through Feb. 18. Let's dig into the company to evaluate this opportunity. Image source: Getty Images. Lumen's strategic transformation Lumen was formerly CenturyLink, but changed its name in 2020 to reinforce its transition away from traditional telecommunications services. It exited its consumer fiber operations this February, selling the business to focus on what Lumen CEO Kate Johnson described as "powering the digital infrastructure that enterprises and public sector organizations need to win in the AI era." The company is currently executing a multi-billion-dollar upgrade and expansion of its fiber network to support AI bandwidth needs. Lumen believes businesses will double their cloud spending by 2030 to $1 trillion in the quest to adopt AI. That's the market opportunity it's pursuing. ExpandNYSE: LUMNLumen TechnologiesToday's Change(-2.49%) $-0.20Current Price$7.83Key Data PointsMarket Cap$8.0BDay's Range$7.75 - $8.0752wk Range$3.01 - $11.95Volume8MAvg Vol13MGross Margin24.31% Lumen's frightening financials However, Lumen's financials are taking a hit as it transitions away from its CenturyLink legacy and builds up an AI-focused business. It ended 2025 with revenue of $12.4 billion, down from $13.1 billion in 2024. Lower sales combined with rising expenses resulted in a net loss of $1.7 billion in 2025, a massive increase from the prior year's $55 million loss. On top of that, Lumen must invest in building out its fiber network of the future. Hence, its 2025 capital expenditures totaled $4.4 billion, up from 2024's $3.2 billion. This left it with free cash flow (FCF) of $371 million. Lumen's FCF is important because it's used to pay down debt, and the company has racked up a lot of indebtedness. It exited 2025 with over $17 billion in debt on its balance sheet. Lumen expects an improving situation in 2026. It forecast FCF of at least $1.2 billion, and adjusted EBITDA of $3.1 billion to $3.3 billion for this year. Its 2025 adjusted EBITDA was $2.6 billion. Lumen's millionaire potential Lumen's pivot to an AI network provider is a compelling case for investors. Adding to this is a reasonable valuation, given its 0.65 sales multiple. But does this valuation and its AI future suggest its stock can help you achieve millionaire status? Although the possibility exists, at this point, the potential looks murky at best. Lumen's 2026 projections for adjusted EBITDA and FCF are encouraging, but it still needs to strengthen its overall financial health, which includes reducing its excessive debt. Consequently, investing in Lumen is a high-risk proposition, suitable only for those with a strong risk tolerance. Perhaps it can succeed as an essential "picks and shovels" provider for the AI sector. But don't expect it to make you a millionaire.Read NextFeb 6, 2026 •By Billy DubersteinWhy Lumen Technologies Rocketed Nearly 30% Higher TodayFeb 3, 2026 •By Will HealyAIGH Capital Dumps 2.6 Million Lumen Technologies Shares In $15.6 Million ExitJan 18, 2026 •By Keith NoonanWhy Lumen Technologies Stock Surged 46.3% Last Year and Has Kept Climbing in 2026Dec 27, 2025 •By Stefon WaltersDon't Buy Lumen Technologies Stock Until Reality Backs Up the HypeNov 29, 2025 •By Catie HoganIs Lumen Technologies Stock Undervalued Right Now?
What Investors Need to Consider.Nov 15, 2025 •By Keith NoonanWhy Lumen Stock Plummeted This WeekAbout the AuthorRobert "Izzy" Izquierdo is a contributing Motley Fool stock market analyst covering information technology, consumer discretionary, consumer staples, and communication services sectors. Prior to The Motley Fool, Izzy was head of product management at Target Media Partners, developing and launching multimillion-dollar software used by businesses such as Charter Communications. Prior to that, he worked at Yahoo! and startups on software products in connected TV, AI, consumer apps, and digital advertising. He holds a bachelor’s degree in English literature from UCLA and is certified in software product management.TMFWryWriteStocks MentionedLumen TechnologiesNYSE: LUMN$7.83 (2.49%) $0.20*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.