American Tower Raises 2026 Property Revenue Outlook to $10.865 Billion
Key Facts
American Tower raised its 2026 property revenue outlook for the third time this year, setting a range of $10.785 billion to $10.865 billion, with expected midpoint growth of 5.0% compared with 2025. The company said the increase was supported by data center performance and continued leasing demand across its global tower portfolio. CEO Steve Vondran said "continued leasing demand across our global tower portfolio and continued outperformance at CoreSite" supported the results. The higher revenue outlook came with a $0.02 increase in the midpoint of its outlook for adjusted funds from operations per share. By contrast, the midpoint of its adjusted EBITDA outlook was unchanged, while the midpoint of its net income outlook was lowered.
In the third quarter, property revenue rose 4.5% to $2.734 billion from the same period a year earlier. The company attributed the growth to a 1.1% increase in organic tenant billings and a 16.3% rise in data center cash revenue. The difference in growth rates highlights data centers’ contribution to property performance during the period. The company also forecast data center property revenue of $1.218 billion to $1.228 billion in 2026. That implies expected midpoint year-over-year growth of 16.1%.
At the results level, net income fell 14.4% to $781 million in the third quarter compared with the same quarter a year earlier. Meanwhile, adjusted earnings before interest, taxes, depreciation and amortization rose 0.9% to $1.832 billion. The company said the reduction to its annual net income estimates reflects unrealized losses on securities. It lowered the midpoint of its net income outlook by $30 million and cut the midpoint of its outlook for net income attributable to common stockholders by the same amount. The midpoint of adjusted EBITDA guidance therefore remained stable despite the reductions to both net income measures.
Adjusted funds from operations attributable to common stockholders rose 2.4% to $1.335 billion in the third quarter. That amounted to $2.87 per share, up 3.2% from the same period a year earlier. For the full year, the company is targeting a range of $11.04 to $11.16 per share in 2026, with estimated midpoint growth of 3.2%. It raised the midpoint of that range by $0.02 due to capital allocation decisions. This puts its adjusted cash flow per share outlook on a growth trajectory alongside a lower net income outlook.
Alongside the outlook update, American Tower announced an agreement to sell all of its interests in its Canadian subsidiaries for about C$288 million, equivalent to about $202 million. The company expects to complete the transaction during the fourth quarter of 2026, subject to customary closing conditions. The deal has not yet closed, making its expected year-end timing contingent on execution of the company’s capital allocation plan. The update combines expected growth in property and data center revenue with a move involving its Canadian portfolio. The figures also reflect a divergence between growth in adjusted funds from operations per share and a decline in third-quarter net income.
In the initial reaction, the company’s shares fell 0.68% in premarket trading following the results announcement, according to Investing.com. The platform reported adjusted earnings per share of $1.64, matching analysts’ estimates. Revenue, meanwhile, exceeded the consensus estimate of $2.76 billion. The reaction followed results showing growth in property revenue and adjusted funds from operations per share, alongside lower net income. The next operational milestone identified by the company is completing the sale of its Canadian assets during the fourth quarter of 2026.