American Tower (AMT) Earnings Date & Reports

Key Takeaways

• Revenue beat: Total revenue rose 4.7% year-over-year to $2.75 billion, surpassing the consensus estimate of approximately $2.70 billion.
• Earnings outperformance: Adjusted funds from operations (AFFO) per share reached $2.71, edging past the FactSet consensus of $2.70 and reflecting 4.2% growth from the prior-year period.
• Record data center leasing: CoreSite delivered its fifth consecutive quarter of double-digit revenue growth, with cash revenue up approximately 12% and new leasing bookings exceeding full-year 2021 levels.
• Full-year guidance raised again: Management lifted its 2026 property revenue outlook by $110 million at the midpoint and increased both adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and AFFO guidance by $45 million each.
• Net income surge: Net income attributable to AMT common stockholders jumped 136.5% to $868 million, or $1.86 per diluted share, driven by strong operating performance and favorable year-over-year comparisons.
• Share price response: AMT shares rose approximately 6% in early trading following the release, reflecting investor enthusiasm for the results and guidance raise.

Earnings Context and Why It Matters

American Tower's second-quarter report carried heightened significance for several reasons. As one of the world's largest real estate investment trusts (REITs) focused on communications infrastructure, the company sits at the intersection of two powerful secular trends: the global 5G buildout and the accelerating demand for data center capacity driven by artificial intelligence and cloud computing. The quarter also marked a pivotal moment in American Tower's strategic pivot toward developed markets, with the company completing divestitures in the Philippines and Bangladesh. Investors were closely watching whether organic tower leasing demand could offset the well-telegraphed headwind from DISH Network churn, and whether CoreSite's data center momentum could be sustained. The results provided a clear answer on both fronts.

Reported Results

American Tower reported total revenue of $2.749 billion for the second quarter ended June 30, 2026, representing a 4.7% increase from $2.627 billion in the same period a year ago. Total property revenue, the company's primary top-line metric, rose 6.3% to $2.688 billion. Both figures came in ahead of Wall Street consensus expectations, which had called for revenue of approximately $2.70 billion.

On the bottom line, AFFO attributable to AMT common stockholders — a key profitability measure for REITs — totaled $1.264 billion, or $2.71 per share. This matched the Zacks Consensus Estimate and narrowly surpassed the FactSet estimate of $2.70. AFFO per share grew 4.2% year-over-year. Net income attributable to common stockholders soared 136.5% to $868 million, or $1.86 per diluted share, reflecting both operational strength and one-time factors. Adjusted EBITDA increased 3.2% to $1.808 billion, while the adjusted EBITDA margin held at a robust 65.8%.

Organic tenant billings growth came in at approximately 1.9%, or roughly 4% when excluding the impact of DISH-related churn, which represented a roughly 1.7 percentage point headwind. Data center revenue climbed 13.4% year-over-year to $297 million, with cash revenue up 12.3%. Property gross margin reached 73.7%. Free cash flow surged 19.6% to $1.158 billion, reflecting strong cash generation and disciplined capital spending.

Management raised the full-year 2026 property revenue outlook by $110 million at the midpoint to a range of $10.70 billion to $10.85 billion. The AFFO per share outlook was lifted by $0.09 at the midpoint to a range of $11.00 to $11.17, while the data center revenue growth forecast was accelerated to approximately 15%, up 200 basis points from the prior plan.

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Market Reaction and Investor Sentiment

AMT shares climbed nearly 6% to approximately $177.70 in the trading session following the earnings release, signaling broad investor approval of the results and the second upward guidance revision this year. The positive reaction reflected relief that organic tower leasing demand remained resilient despite DISH-related churn, coupled with enthusiasm over CoreSite's accelerating data center momentum. The stock's move also suggested that investors were willing to look past the full-year revenue guidance midpoint of $10.77 billion, which came in slightly below the analyst consensus of roughly $10.94 billion, focusing instead on the stronger AFFO trajectory and margin execution. Sentiment was further supported by the company's continued capital return to shareholders through a 5.3% dividend increase to $1.79 per share and ongoing share repurchases.

Forward Outlook and Key Factors to Monitor

American Tower enters the second half of 2026 with considerable momentum, but several key factors will shape its trajectory through year-end and into 2027.

The most important variable remains the organic leasing environment across the company's global tower portfolio. While U.S. and Canadian organic growth was nearly 5% excluding DISH churn, international markets presented a mixed picture. Africa and Asia-Pacific delivered organic growth of nearly 11%, though management cautioned that churn in those regions is expected to be weighted toward the second half. Europe posted approximately 4% organic growth, while Latin America declined more than 2%, reflecting elevated churn in Brazil. Investors should monitor whether international churn pressures intensify or stabilize in the coming quarters.

CoreSite's data center business has emerged as a critical growth engine. With the full-year data center revenue growth outlook now set at approximately 15% and planned development capital spending of roughly $695 million, execution on new capacity delivery and leasing will be closely watched. The record leasing activity reported in Q2 suggests robust demand, but converting that pipeline into revenue will be essential for sustaining momentum.

On the cost side, higher interest rates are now expected to create an approximately 150-basis-point headwind to AFFO per share growth in 2026, up from a prior estimate of roughly 100 basis points. Management characterized 2026 as a likely trough year for AFFO per share growth, citing DISH churn, refinancing costs, and a lower contribution from the services business, with improvement expected in 2027 as these pressures ease. The company's leverage ratio of 4.9 times remains within its target range of three to five times, providing balance sheet flexibility for continued investment in both towers and data centers. The completed exit from the Philippines and Bangladesh markets further sharpens the portfolio's focus on developed-market assets with higher-quality earnings streams.

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