American Tower Corporation (NYSE:AMT) reported stronger-than-expected second-quarter results on Tuesday, beating Wall Street forecasts for both earnings and revenue. However, investors were disappointed by the company’s full-year revenue guidance, which came in below market expectations despite an improved outlook.
The communications infrastructure real estate investment trust posted adjusted earnings per share of $1.86, comfortably ahead of the analyst consensus estimate of $1.55.
Revenue increased 4.7% year over year to $2.75 billion, exceeding analysts’ expectations of $2.70 billion.
Tower and Data Centre Growth Supports Quarterly Performance
Total property revenue rose 6.3% to $2.69 billion, while adjusted EBITDA increased 3.2% to $1.81 billion.
Chief Executive Officer Steve Vondran said continued demand across the company’s global tower portfolio and record leasing activity at its CoreSite data centre business drove the strong quarterly performance.
“We delivered another strong quarter, driven by robust leasing demand across our global tower portfolio, record leasing activity at CoreSite, and continued operational excellence,” said Steve Vondran, Chief Executive Officer.
Full-Year Revenue Forecast Trails Wall Street Estimates
For fiscal 2026, American Tower expects revenue of between $10.695 billion and $10.845 billion.
The midpoint of $10.77 billion is below the analyst consensus estimate of $10.935 billion.
The company forecast adjusted EBITDA of $7.24 billion to $7.31 billion and funds from operations (AFFO) attributable to common shareholders of between $11.00 and $11.17 per share, representing approximately 3.0% growth at the midpoint.
Outlook Raised Again as Data Centres Continue to Perform
American Tower increased its full-year outlook for the second time this year, lifting the midpoint of its property revenue forecast by $110 million and raising adjusted EBITDA and AFFO guidance by $45 million each.
Management said the improved outlook reflects favourable foreign exchange movements, stronger-than-expected performance from its data centre operations and one-off expense benefits.
AFFO attributable to common shareholders increased 3.8% year over year to $1.26 billion during the second quarter.
The company also declared a quarterly dividend of $1.79 per share, an increase of 5.3% from a year earlier.
During the quarter, American Tower completed the sale of its Philippines subsidiary for $75.6 million and its controlling interest in a Bangladesh entity for $6.9 million as part of its ongoing portfolio optimisation strategy.
American Tower Corporation stock price
