It has been about a month since the last earnings report for Crown Castle (CCI). Shares have added about 15% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Crown Castle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Crown Castle Q4 AFFO & Sales Beat Estimates, Services Revenues Rise
Crown Castle reported fourth-quarter 2025 adjusted funds from operations (AFFO) per share of $1.12, which topped the Zacks Consensus Estimate of $1.07 per share. However, the figure declined nearly 6.7% year over year.
Results reflected a rise in services and other revenues year over year. A decrease in site rental revenues affected the results to some extent.
Net revenues of $1.07 billion beat the Zacks Consensus Estimate of $1.05 billion but fell 4.2% year over year.
Key Earnings Takeaways
During the fourth quarter, Crown Castle’s total site rental revenues declined 4.8% year over year to $1.02 billion.
The organic contribution to site rental billings of $47 million reflected 17.5% year-over-year organic growth, excluding an unfavorable $51 million impact from Sprint Cancellations.
Meanwhile, services and other revenues came in at $53 million, which rose 8.2% from the prior-year quarter.
Quarterly adjusted EBITDA was down 7.6% year over year to $718 million.
Net interest expenses and amortization of deferred financing costs rose 2.5% year over year to $246 million.
Financial Position
Crown Castle exited the fourth quarter with cash and cash equivalents of $99 million, up from $57 million reported as of Sept. 30, 2025.
Moreover, debt and other long-term obligations aggregated $21.55 billion as of Dec. 31, 2025, nearly the same sequentially.
2026 Guidance
Crown Castle issued its guidance for 2026 AFFO per share in the range of $4.38-$4.49.
It projected the site rental revenues in the range of $3.828-$3.873 billion. Adjusted EBITDA is estimated in the band of $2.665-$2.715 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Crown Castle has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Crown Castle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Crown Castle belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Prologis (PLD), has gained 1.3% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Prologis reported revenues of $2.09 billion in the last reported quarter, representing a year-over-year change of +8%. EPS of $1.49 for the same period compares with $1.50 a year ago.
For the current quarter, Prologis is expected to post earnings of $1.48 per share, indicating a change of +4.2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Prologis. Also, the stock has a VGM Score of F.
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Crown Castle Inc. (CCI): Free Stock Analysis Report Prologis, Inc. (PLD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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