Lumen TechnologiesLTS:0HVP 47 Gross Margin % is 50.50% as of Mar. 2026, which is 9% below its 10-year median of 55.24. GuruFocus rates LTS:0HVP with a GF Score™ of 47/100 and a GF Value™ of $4.75 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 342 Telecommunication Services companies, Lumen Technologies ranks worse than 56.14% on this metric.
Lumen Technologies Inc gross margin has been in long-term decline. The average rate of decline per year is -4.3%.
The historical rank and industry rank for Lumen Technologies's Gross Margin % or its related term are showing as below:
LTS:0HVP'
s Gross Margin % Range Over the Past 10 Years
Min: 46.48 Med: 55.24 Max: 57.43
Current: 47.31
During the past 13 years, the highestGross Margin % of Lumen Technologies was 57.43%. The lowest was 46.48%. And the median was 55.24%.
LTS:0HVP's Gross Margin % is ranked worse than 56.14% of 342
companies
in the Telecommunication Services industry
Industry Median: 51.51
vs LTS:0HVP: 47.31
Lumen Technologies had a gross margin of 50.50% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lumen Technologies was -4.30% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Lumen Technologies had a gross margin of 50.50% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Lumen Technologies Gross Margin % Related Terms
Lumen Technologies Gross Margin % Historical Data
* Premium members only.
The historical data trend for Lumen Technologies's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0HVP vs GSAT, IRDM, LBRDA: Gross Margin % Comparison
For the Telecom Services subindustry, Lumen Technologies's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lumen Technologies Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Lumen Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lumen Technologies's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Lumen Technologies (LTS:0HVP) has a Gross Margin % of 50.50% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lumen Technologies and its competitors. This is near median its historical median of 55.24. Over the past decade, Lumen Technologies' Gross Margin % has ranged from 46.48 to 57.43. According to the industry distribution chart, Lumen Technologies ranks #192 out of 342 companies in the Telecommunication Services industry, placing it in the top 56.1%.
Is Lumen Technologies' Gross Margin % too high?
Lumen Technologies' current Gross Margin % of 50.50% is near median its 10-year median of 55.24. Over the past 10 years, this metric has ranged from a low of 46.48 to a high of 57.43. The Telecommunication Services industry median Gross Margin % is 51.51. Lumen Technologies' value of 50.50% is 2% below this industry median. Based on the distribution chart, Lumen Technologies ranks #192 out of 342 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Lumen Technologies has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lumen Technologies' Gross Margin % compare to GSAT and IRDM?
According to the Telecommunication Services industry distribution chart, Lumen Technologies ranks #192 out of 342 companies for Gross Margin %. This places Lumen Technologies in the lower half of its industry. The industry median Gross Margin % is 51.51. Lumen Technologies' value of 50.50% is 2% below this benchmark. Historically, Lumen Technologies' own Gross Margin % has ranged from 46.48 to 57.43 over the past decade. While the company's 10-year median is 55.24 vs. the industry median of 51.51, Lumen Technologies has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.51, based on 342 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumen Technologies's current Gross Margin % of 50.50% is 2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Lumen Technologies and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumen Technologies's current Gross Margin % is 50.50%, which is near median its own 10-year median of 55.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lumen Technologies stock overvalued right now?
Based on GuruFocus' analysis, Lumen Technologies (LTS:0HVP) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.75, compared to a current price of $7.88 — trading 65.9% above its estimated fair value. The current Gross Margin % is 50.50%, which is near median its 10-year median of 55.24 and 2% below the Telecommunication Services industry median of 51.51. Lumen Technologies' overall GF Score™ is 47/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Lumen Technologies (LTS:0HVP), the current Gross Margin % is 50.50% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lumen Technologies (LTS:0HVP) Overvalued in 2026?
Based on GuruFocus' analysis, Lumen Technologies stock appears to be overvalued.
The current stock price of $7.88 is trading 65.9% above its estimated GF Value™ of $4.75.
GuruFocus considers Lumen Technologies to be Significantly Overvalued.
Key valuation signals for LTS:0HVP:
Gross Margin %: 50.50% (near median its 10-year median of 55.24)
GF Value™: $4.75 vs. price of $7.88 (65.9% above fair value)
Industry Position: 2% below the Telecommunication Services median (#192 of 342)
No single metric tells the full story. See the LTS:0HVP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lumen Technologies is one of the largest telecommunications carriers serving global enterprises. The merger with Level 3 in 2017, the 2022 divestiture of much of its local phone business in rural areas, and the 2026 sale of its remaining consumer fiber network to AT&T have shifted the company's operations away from the legacy consumer business and toward enterprise services, which account for about 85%-90% of revenue. Lumen offers businesses a full suite of communications services, providing colocation and data center services, data transportation, phone service, and internet access.
47GF Score
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