Key Highlights

  • Third-quarter revenue was $2.785 billion, up 2.5%, with property revenue of $2.734 billion, up 4.5%.
  • AFFO per share rose 3.2% to $2.87, while diluted EPS fell 9.9% to $1.64.
  • Data Centers property revenue climbed 17.4% to $313 million, and U.S. & Canada property revenue fell 3.3% to $1.275 billion.
  • The 2026 AFFO per share outlook was raised by $0.02 at the midpoint to $11.04 to $11.16.
  • The board added up to $2.0 billion of repurchase authority on October 23, on top of about $1.1 billion remaining.

American Tower Earnings: Does Data Center Outperformance Justify the Higher Outlook?

American Tower (NYSE:AMT) reported third-quarter results on Tuesday, October 27, with total revenue of $2.785 billion, up 2.5%, and property revenue of $2.734 billion, up 4.5%. AFFO attributable to common stockholders was $1.335 billion, up 2.4%, or $2.87 per share, up 3.2%. Diluted EPS was $1.64, down 9.9%, against a screen estimate of $1.63.

The company raised its 2026 property revenue midpoint by $55 million to a range of $10.785 billion to $10.865 billion, citing Data Centers outperformance. AFFO per share midpoint rose $0.02 to a range of $11.04 to $11.16, which management attributed to capital allocation decisions. Management said it was the third raise of the outlook this year.

U.S. Tower Billings and Churn: Where Did Growth Come From?

U.S. & Canada property revenue fell 3.3% to $1.275 billion, with organic tenant billings flat. Cancellations in that segment were $63 million versus $28 million a year earlier. The 2026 outlook calls for U.S. & Canada organic tenant billings growth of about 0.5% and property revenue of $5.085 billion to $5.095 billion, down about 3.0% at the midpoint.

Africa & APAC grew property revenue 15.4% to $428 million with organic tenant billings up 8.2%. Latin America property revenue rose 10.4% to $460 million, but organic tenant billings fell 2.1%. Europe rose 5.9% to $258 million, with organic tenant billings up 4.2%.

Consolidated organic tenant billings growth was 1.1%. Consolidated cancellations rose to $97 million from $43 million.

Profit and Cash Flow: Why Did Net Income Fall 14.4%?

Net income was $781 million, down 14.4%, as unrealized losses on equity investments of about $71.5 million replaced a $10.9 million gain a year earlier. The 2026 net income range was lowered $30 million at the midpoint to $3.253 billion to $3.308 billion for the same reason.

Adjusted EBITDA was $1.832 billion, up 0.9%, with property gross margin of $2.009 billion at 73.5%. Cash from operations was $1.393 billion, down 4.6%, and free cash flow $986 million. Full-year Adjusted EBITDA is guided to $7.248 billion to $7.303 billion, unchanged.

Buybacks, Leverage and the Canada Sale: How Is Capital Being Allocated?

The quarterly distribution was $1.79 per share, up 5.3%, totalling $831 million. The company repurchased about 1.8 million shares for about $315 million in the quarter and a further $68 million through October 20.

Net debt was $35.707 billion, a net leverage ratio of 4.9 times, with liquidity of about $10.6 billion. The company agreed to sell its Canadian subsidiaries for about CAD 288 million, or about $202 million, with closing expected in the fourth quarter. Data Centers development spend is $695 million for 2026.

What to Watch Next: Will U.S. Cancellations Ease and Can Data Centers Hold 16%?

Investors will track the Canada sale closing in the fourth quarter, U.S. churn against the 0.5% billings outlook, and Data Centers revenue toward the $1.218 billion to $1.228 billion outlook.