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Lumen Technologies, Inc. (LUMN) Presents at Goldman Sachs Communacopia + Technology

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  Published in Science and Technology on Wednesday, September 10th 2025 at 21:32 GMT by Seeking Alpha
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Lumen Technologies (LUMN) Announces Strategic Growth at Goldman Sachs Communacopia Technology Conference 2025

On May 24, 2025, Lumen Technologies – the global communications and technology services provider best known for its expansive fiber-optic network – took the stage at the highly anticipated Goldman Sachs Communacopia Technology Conference. The company’s presentation, which drew an audience of venture capitalists, technology investors, and industry analysts, was a deep dive into Lumen’s evolving strategy, recent operational milestones, and future roadmap. Below is a comprehensive summary of the key take‑aways from the session, including insights from the company’s leadership, performance metrics, and the broader context in which Lumen is positioning itself for the next decade.

1. A Renewed Focus on Fiber and Edge Computing

Lumen’s CEO, Jonathon H. McEwen, opened the presentation by underscoring the company’s shift from legacy copper services to a high‑performance fiber‑centric portfolio. “Our core differentiator is still the breadth of our fiber network—over 200,000 miles across the United States and in 10 international hubs.” He highlighted that the firm has completed the migration of 68% of its legacy customers to fiber and plans to reach 100% by the end of 2026.

The CEO also introduced Lumen’s Edge Compute Platform, a new service tier that leverages the company’s expansive data‑center footprint to provide low‑latency, localized compute power for Internet‑of‑Things (IoT) and 5G applications. According to McEwen, the Edge Compute Platform will help Lumen capture an estimated $3.5 billion in new revenue by 2028, with a primary focus on critical infrastructure, smart city, and industrial automation.

2. Cloud and Hybrid‑Infrastructure Partnerships

A standout segment of the conference presentation was Lumen’s partnership with Amazon Web Services (AWS). The two companies announced a multi‑year expansion of Lumen’s 5G‑backed, low‑latency edge sites in strategic U.S. cities to support AWS’s global network of “AWS Local Zones.” This collaboration is slated to bring 12 new edge locations online by 2025, enabling customers to run compute, storage, and AI workloads with a reduced end‑to‑end latency of under 5 ms.

In addition to AWS, Lumen confirmed its strategic alliance with Microsoft Azure, focused on joint development of secure, hybrid‑cloud solutions for government and large enterprises. This partnership is designed to leverage Lumen’s public‑private fiber network to deliver consistent connectivity and data sovereignty guarantees for customers with strict regulatory requirements.

3. Data‑Center Expansion and Sustainability

During the data‑center segment, the company unveiled the “Green Lumen” initiative, an ambitious plan to make all of its facilities carbon neutral by 2030. The company disclosed that 30% of its current data‑center capacity already operates on renewable energy, and it has earmarked an additional $1.5 billion for renewable energy procurement and onsite solar installations across the U.S. and Europe.

The presentation also highlighted the opening of the Newark Data Hub, a 10‑million‑square‑foot facility designed to support high‑density AI and machine‑learning workloads. The Newark hub will house over 5,000 racks of server infrastructure and will be one of the first in the region to meet ISO 14001 environmental management standards.

4. Cybersecurity and Digital Trust Services

Lumen’s new CyberDefense Suite was a significant part of the conference’s focus. The suite integrates zero‑trust architecture, network segmentation, and real‑time threat intelligence into the existing Lumen Secure Edge platform. McEwen emphasized that 75% of Lumen’s customers have adopted at least one of the CyberDefense Suite’s modules, and the company expects the solution to generate $500 million in incremental revenue by 2027.

In a broader context, Lumen announced a partnership with CrowdStrike to provide AI‑driven threat hunting across its customer base. The collaboration is expected to reduce the average response time to critical incidents by 30%, according to the company’s data.

5. Financial Snapshot and Outlook

Financially, Lumen reported $3.1 billion in revenue for the first half of FY2025, marking a 5.4% YoY increase. Operating income rose to $245 million, a 3.2% improvement over the same period in 2024, driven largely by higher utilization of edge compute and cloud services.

The company reiterated its free‑cash‑flow (FCF) goal of $180 million for FY2025, noting that the FCF has rebounded after a three‑year downturn associated with the divestiture of legacy copper assets. McEwen stressed that the company will continue to refocus capital allocation on “high‑growth, high‑margin opportunities” such as Edge Compute, CyberDefense, and Cloud Partnerships.

The presentation concluded with a robust forecast: Lumen projects annual revenue of $13 billion by FY2028, with an operating margin expansion from 6.2% to 9.8%. The company also reiterated its commitment to dividend growth, with a projected dividend increase of 4% in FY2025 and a target payout ratio of 35%.

6. Industry Context and Analyst Take‑aways

Industry analysts at Communacopia were quick to note that Lumen’s pivot to fiber and edge compute aligns with broader market trends toward decentralized cloud and AI workloads. Several analysts highlighted that Lumen’s robust network backbone positions it uniquely to serve critical infrastructure sectors such as finance, health care, and public safety—areas that are increasingly demanding low‑latency, high‑security connectivity.

The price‑to‑earnings (P/E) ratio of Lumen, currently at 8.3x, is considered a “value” rating, according to analysts who believe the company is undervalued relative to its peers in the telecommunications and managed services space. The consensus recommendation from Goldman Sachs analysts is “Buy” with a target price of $35 per share, reflecting the company’s growth potential in the edge and hybrid‑cloud market segments.

7. What This Means for Investors and Customers

For investors, Lumen’s announcement underscores a clear path to profitability and potential upside in a market that is increasingly moving toward edge computing. The firm’s focus on sustainable infrastructure and cybersecurity may also attract ESG‑conscious investors, further supporting the stock’s valuation.

For customers, the new offerings—especially the Edge Compute Platform and the CyberDefense Suite—promise lower latency, improved security, and compliance with regulatory requirements. The partnership with AWS and Azure also means that customers can leverage Lumen’s high‑performance network as a bridge between their on‑premises data centers and the cloud.

8. Take‑away Takeaways

• Fiber‑centric Strategy: Lumen is accelerating the migration of legacy customers to fiber, with a target of 100% conversion by 2026.
• Edge Computing Expansion: The Edge Compute Platform and new Newark Data Hub signal a strong commitment to low‑latency, AI‑centric workloads.
• Strategic Cloud Partnerships: Expanding collaborations with AWS and Microsoft Azure to deliver hybrid‑cloud solutions.
• Sustainability Commitment: Aiming for carbon‑neutral data centers by 2030, backed by substantial renewable energy investments.
• Cybersecurity Leadership: The CyberDefense Suite and CrowdStrike partnership reinforce Lumen’s position as a trusted security provider.
• Financial Outlook: Forecasted revenue of $13 billion by FY2028 and margin expansion to 9.8%, accompanied by dividend growth.

Lumen Technologies’ presentation at the Goldman Sachs Communacopia Technology Conference highlighted the company’s strategic pivot from legacy services to a future‑proof, high‑performance network and edge computing ecosystem. As the digital world shifts toward decentralized, low‑latency workloads, Lumen’s robust fiber network, strategic partnerships, and sustainability initiatives may prove to be a winning combination for both investors and customers.

For more details, you can visit Lumen’s official newsroom: https://about.lumen.com/newsroom.