From The Motley Fool · Motley Fool Transcribing · · 2m
American Tower Q3 2026 Earnings Report
American Tower raises full-year guidance as data center growth outperforms.
In brief
American Tower raises full-year guidance as data center growth outperforms. American Tower reported 4.5% property revenue growth with 16.3% data center cash revenue growth, raising full-year 2026 guidance to $10.785 billion property revenue and $11.04-$11.16 AFFO per share. Originally reported by The Motley Fool.
Q3 Revenue Highlights
Total revenue reached $2.785 billion, a 2.5% increase driven by property leasing growth.
Data Center Performance
CoreSite delivered 16.3% cash revenue growth with record leasing activity and pricing leverage.
Organic Growth Breakdown
US and Canada growth flat at 0% due to DISH-related churn; Africa and APAC grew over 8%; Europe over 4%; Latin America declined 2%.
Share Repurchase Activity
Repurchased $315 million in Q3 with additional $68 million through Oct. 20, 2026, increasing authorization to $3.1 billion.
Canada Divestiture
Sold Canadian portfolio for $202 million to recycle capital into higher-growth opportunities.
Net Leverage Ratio
Maintained net leverage ratio of 4.9x within target range of 3x to 5x.
Full-Year Guidance
Raised property revenue guidance to $10.785 billion to $10.865 billion with AFFO per share guidance at $11.04 to $11.16.
Data Center Development
Spent $695 million on data center capacity to support growing AI and cloud demand.
AI Traffic Projections
CTIA expects AI traffic to grow three times faster than traditional wireless traffic by 2034.
5G Densification
Carriers adding equipment to existing sites to improve network capacity and density.
Spectrum Deployment
New spectrum cycle beginning with upper C-band in 2027 to drive equipment upgrades.
Starlink Opportunity
American Tower positioned as premier tower vendor for Starlink's US network build.
2026 as Trough Year
2026 represents trough for organic growth with inflection expected in 2027 as DISH churn subsides.
Services Revenue Impact
Services EBITDA reduced by $15 million due to timing shifts in customer projects.
Full-Year Services Revenue
Revised services revenue guidance down to $220 million due to project delays.
2027 Growth Outlook
Expected organic growth acceleration in 2027 as DISH-related churn headwinds subside.
The headline
American Tower reported 4.5% property revenue growth with 16.3% data center cash revenue growth, raising full-year 2026 guidance to $10.785 billion property revenue and $11.04-$11.16 AFFO per share.
