Key Highlights

  • Total revenue rose 2.5% to USD 2.785 billion, while property revenue grew 4.5% to USD 2.734 billion.
  • Data Centers cash revenue grew 16.3%, while consolidated organic tenant billings growth came in at 1.1%.
  • Adjusted funds from operations attributable to common stockholders rose 2.4% to USD 1.335 billion, or USD 2.87 per share.
  • Net income fell 14.4% to USD 781 million, reflecting USD 71.5 million of unrealized losses on equity investments.

Data Centers Lift a Flat Tower Core

American Tower (NYSE:AMT) reported third-quarter total revenue of USD 2.785 billion on Tuesday, up 2.5%, and property revenue of USD 2.734 billion, up 4.5%. Adjusted EBITDA rose 0.9% to USD 1.832 billion at a 65.8% margin. Adjusted funds from operations (AFFO) attributable to common stockholders reached USD 1.335 billion, up 2.4%, or USD 2.87 per share, up 3.2%.

Net income fell 14.4% to USD 781 million, mainly because unrealized losses on equity investments of USD 71.5 million compared with gains of USD 10.9 million a year earlier. Non-cash straight-line revenue also swung to a negative USD 24.0 million from a positive USD 27.7 million, which depressed reported growth rates.

Churn, Services and Legal Overhangs

Consolidated organic tenant billings growth was 1.1%, or about 4% when management excludes churn tied to DISH. U.S. and Canada organic growth was flat after a drag of roughly 400 basis points from that churn. Africa and APAC grew above 8% and Europe above 4%, while Latin America fell about 2% on elevated churn in Brazil.

Management called 2026 the trough year for both organic tenant billings growth and AFFO per share growth. In the U.S., new business is projected to add about 250 basis points to organic tenant billings growth for the year, though contributions stepped down in the second half.

Network services revenue guidance was trimmed to about USD 220 million, cutting adjusted EBITDA by USD 15 million because certain customer projects shifted later. Revenue reserves tied to the AT&T Mexico dispute are projected to reach about USD 70 million by year-end, and management does not anticipate an arbitration ruling before 2027.

Outlook Revisions and Capital Return

Full-year property revenue guidance is USD 10.785 billion to USD 10.865 billion, with the midpoint raised USD 55 million on Data Centers outperformance. The adjusted EBITDA midpoint is unchanged, net income midpoints were lowered USD 30 million on equity losses, and AFFO per share guidance rose USD 0.02 at the midpoint to a range of USD 11.04 to USD 11.16.

American Tower repurchased about 1.8 million shares for USD 315 million in the quarter and a further USD 68 million through Oct. 20. On Oct. 23 the board added USD 2.0 billion to the program. The quarterly distribution of USD 1.79 per share was 5.3% higher than a year earlier.

The company agreed to sell its Canadian subsidiaries for about CAD 288 million, roughly USD 202 million, with closing targeted for the fourth quarter. Net leverage stood at 4.9x, and liquidity was about USD 10.6 billion.

Markers to Follow

Tracking points include organic tenant billings growth against the roughly 1% full-year outlook, Data Centers growth against the raised 16% figure, and services revenue against USD 220 million. Net leverage of 4.9x sits within the target range of 3x to 5x stated by the finance chief.

Further items are the closing of the Canada sale, the DISH mediation and the timing of the Mexico arbitration ruling.