Lumen CEO Outlines AI-Driven Networking Shift at Citi Conference

Lumen Technologies Inc. (LUMN) highlighted its strategic pivot toward AI-driven networking at Citi’s 2026 Global Technology, Media and Telecommunications (TMT) Conference, emphasizing digital transformation in communications infrastructure. CEO Kate Johnson underscored a shift from traditional connectivity toward on-demand, outcome-based services, citing a 53% share of total revenue derived from strategic initiatives that grew 14% year-over-year in the latest quarter. The company’s basic connectivity and transport segment expanded at over 200% annualized growth, a dramatic uptick from its historical 1% rate, reflecting heightened demand for high-speed fiber solutions. Project Coastal Fiber (PCF), a $13 billion contract secured by Lumen, will expand its fiber footprint from 12 million miles at the start of Johnson’s tenure to 58 million miles by the end of 2031—a nearly fivefold increase. Additionally, direct internet access (DIA) revenue exceeded $1 billion, with over 100,000 customer ports already deployed. Johnson noted that new services sold atop existing circuits carry 80% margins, underscoring the profitability of upselling digital enhancements. The company’s gross profit margin remained stable at 47.79%, while free cash flow stabilized, with EBITDA growth targeted for 2026. A return to positive revenue growth in core segments is expected by 2028. Lumen’s AI networking ambitions align with partnerships with Microsoft, AT&T, and Google Cloud Platform, as well as investments in Alkira, which offers access to a $47 billion total addressable market. Johnson emphasized the need to raise market awareness of its digital capabilities, particularly in contrast to cloudified compute and storage solutions, arguing that network infrastructure must also evolve toward cloud-like agility. The company’s focus on PCF deals was framed as supplementary to its broader growth strategy, with funding needs addressed through operational efficiencies and strategic revenue expansion.