Lumen at Citi’s 2026 Global TMT Conference: pivot to ai networking

On 09 September 2026, Lumen Technologies Inc. (LUMN) appeared at Citi’s 2026 Global TMT Conference to unveil its pivot towards artificial intelligence (AI) networking. Chief Executive Kate Johnson announced that the business is evolving from traditional telecom circuits to a programmable network tailored for AI, despite noting that the market is yet to fully comprehend the shift.

The company's transformation is proceeding as planned, with stabilized free cash flow, targeted EBITDA growth for 2026, and anticipated positive revenue growth in the business segment by 2028. Shares of LUMN experienced a 2.3% decline, closing at $6.488, within a 52-week trading range of $5.45 to $11.95.

Lumen is reshaping itself into an enterprise networking platform for AI rather than a conventional carrier offering static connectivity. Strategic revenue now constitutes 53% of total revenue, representing a 14% year-over-year increase in the latest quarter. The company declared that it no longer requires Project Coastal Fiber's hyperscaler deals to fuel future growth.

Lumen aims to amplify its fiber footprint from 12 million miles to 58 million miles by the end of 2031, a nearly fivefold expansion. Johnson emphasized that the biggest challenge lies in raising market awareness of Lumen’s digital platform and its revenue quality.

The core of Lumen's strategy involves shifting from selling physical circuits with fixed bandwidth and billing to on-demand, programmable networking that delivers consumption-based services and business outcomes. This transition is driven by the need to move data "from anywhere to anywhere in real time." Johnson highlighted customers like hospitals, banks, and retailers who require networks capable of supporting real-time diagnostics, fraud detection, and inventory management. She stressed that AI cannot be effectively supported without a programmable network.

Lumen's multi-year financial plan remains on track, with free cash flow stabilized and EBITDA growth targeted for 2026. Positive revenue growth in the digital business segment is projected by 2028. Strategic revenue now accounts for 53% of total revenue, up 14% year-over-year. Johnson described this revenue as "extremely high-quality" and noted that it now exceeds half of the company's total sales.

The company's basic connectivity and transport segment is also expanding at over 200% annually, a significant departure from its previous 1% annual growth rate in this area.

A key aspect of Lumen's strategy is the expansion of its physical network alongside its software layer. The company aims to increase its fiber footprint from 12 million miles to 58 million miles by the end of 2031, with a significant portion reserved for enterprise customers rather than just hyperscaler demand. Johnson stressed that Lumen is the only carrier offering a programmable network agnostic to underlying fiber ownership, allowing the company to utilize third-party fiber, including competitors' networks, while still providing orchestration, security, and control through its platform.