American Tower's Q4 AFFO & Revenues Beat Estimates, Rise Y/Y

American Tower Corporation AMT reported its fourth-quarter 2025 adjusted funds from operations (AFFO), attributable to AMT common stockholders, per share of $2.63, beating the Zacks Consensus Estimate of $2.54. This compared favorably with the prior year’s reported figure of $2.32.

Results reflect a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. American Tower recorded healthy year-over-year organic tenant billings growth of 5.9% and total tenant billings growth of 6.5%. The company issued its 2026 FFO outlook.

The company’s total revenues were $2.74 billion, outpacing the Zacks Consensus Estimate of $2.68 billion. The figure increased 7.5% from the prior-year quarter.

According to Steven Vondran, CEO of American Tower, “Leasing demand across our global tower portfolio and data center business remains robust, underpinned by sustained growth in mobile data consumption, continued 5G deployment, and increasing hybrid-cloud and AI-related workloads.”

In 2025, the company’s AFFO of $10.76 per share increased 8% from a year ago and outpaced the consensus estimate of $10.67. Total revenues grew 5.1% to $10.65 billion and topped the consensus mark of $10.58 billion.

AMT’s Quarter in Detail

Adjusted EBITDA was $1.82 billion, up 7.5% from the prior-year period. The adjusted EBITDA margin was 66.4%.

AMT’s Property Operations

Revenues were $2.67 billion, up by 7.6% on a year-over-year basis. Total operating profit was $1.86 billion, and the operating profit margin was 70%.

In the Property segment, revenues from the United States and Canada totaled $1.33 billion, up 1.6% year over year. Total international revenues amounted to $1.07 billion, up 13.1% year over year. Data Centers added $281 million to Property revenues, up 19% from the prior-year period.

AMT’s Service Operations

Revenues totaled $64.4 million in the quarter, rising 1.1% from the prior-year quarter. The operating profit was $19 million, and the operating profit margin was 29% in the October-December quarter.

Cash Flow & Liquidity of AMT

In the fourth quarter, American Tower generated $1.43 billion of cash from operating activities, down 2.2% from the prior quarter. Free cash flow in the period was $836 million, falling 15% from the prior quarter.

As of Dec. 31, 2025, the company had $11.1 billion in total liquidity. This comprised $1.5 billion in cash and cash equivalents and the availability of $9.6 billion under its revolving credit facilities (net of any outstanding letters of credit).

During the fourth quarter, AMT repurchased an aggregate of 2 million shares of its common stock for a total value of around $365 million, including commissions and fees.

AMT’s 2026 Guidance

American Tower anticipates total property revenues to be in the band of $10.44-$10.59 billion, indicating a year-over-year improvement of 2% at the midpoint.

Adjusted EBITDA is projected in the band of $7.09-$7.16 billion. This calls for a marginal year-over-year decline at the midpoint.

AFFO, attributable to AMT common stockholders, is expected to be in the band of $5.04-$5.12 billion, implying marginal year-over-year growth at the midpoint.

The expected range for AFFO, attributable to AMT common stockholders, per share is $10.78-$10.95, indicating a 1% upside at the midpoint. The Zacks Consensus Estimate for the metric is pegged at $11.05, which is above the company’s guided range.

AMT’s Zacks Rank

AMT currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

American Tower Corporation Price, Consensus and EPS Surprise

American Tower Corporation price-consensus-eps-surprise-chart | American Tower Corporation Quote

Performance of Other REITs

Digital Realty Trust DLR reported fourth-quarter 2025 core FFO per share of $1.86, beating the Zacks Consensus Estimate of $1.83. FFO also increased 7.5% year over year.

Results reflected steady leasing momentum with better rental rates amid rising demand.

W.P. Carey WPC reported fourth-quarter 2025 AFFO per share of $1.27, topping the Zacks Consensus Estimate of $1.26. The figure improved 5% from the year-ago quarter.

Results highlighted higher revenues, aided by strong investment activity and improved rents.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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