Highlights
- Data center revenue grows strongly
- US tower revenue declines on carrier churn
- Full-year outlook raised a third time
American Tower Corporation
(NYSE:AMT)
American Tower Corp (NYSE:AMT)
190.07
USD
-0.175
0.092%
Last Updated at: 2026-11-12T15:15:00Z
, one of the world’s largest owners of wireless towers and data centers, reported third-quarter results with modest growth in cash earnings and raised its full-year outlook for the third time this year. Strong demand at its CoreSite data center business offset weakness in its US tower segment.
For readers who follow Infrastructure and Real Estate, American Tower offers exposure to both wireless communications infrastructure and data centers. It is one of the largest real estate investment trusts on the NYSE Composite.
What Did American Tower Report for the Quarter?
Total revenue grew at a low-single-digit pace, and adjusted funds from operations per share, the key cash earnings measure for REITs, increased modestly and beat expectations. Adjusted EBITDA grew slightly, while reported earnings per share declined because of unrealized investment losses and a higher tax provision.
Why Is CoreSite Growing So Fast?
CoreSite, American Tower’s data center business, grew revenue at a strong double-digit pace. Demand from cloud, network, enterprise and AI customers remained broad, and pricing exceeded management’s expectations. Interconnection activity also increased.
Management said CoreSite’s development pipeline may significantly expand its capacity over time, and demand accelerated into the fourth quarter.
Why Did US Tower Revenue Decline?
Revenue in the US and Canada tower segment declined, mainly because of churn related to DISH, a wireless carrier that has scaled back its network plans. Excluding DISH, organic tenant billings grew at a healthier pace. Management continues to view this year as a low point for organic growth in the US.
New leasing activity from wireless carriers slowed in the third quarter, consistent with management’s expectation of a softer second half.
How Did International Markets Perform?
International tower markets continued to deliver steady leasing demand. However, American Tower has been reducing exposure to some markets and recently agreed to divest its Canadian tower portfolio, which is expected to close in the fourth quarter.
How Did American Tower Change Its Outlook?
The company raised its full-year property revenue outlook, mainly because of CoreSite’s outperformance, and lifted its AFFO per share guidance slightly, partly reflecting share repurchases. Adjusted EBITDA guidance was unchanged.
How Is American Tower Returning Cash?
American Tower repurchased shares during the quarter and after quarter-end, and its board added a significant amount to its repurchase authorization. It also declared a quarterly dividend that grew from a year earlier. As a REIT, the company distributes most of its taxable income to investors.
Why Do Towers Remain Valuable?
Wireless carriers rent space on towers to place antennas, typically under long-term contracts with built-in rent increases. As mobile data usage grows, carriers need more equipment and coverage, supporting long-term demand. Tower leases provide steady, predictable cash flow.
What About Satellite Competition?
American Tower is in discussions with companies pursuing satellite-based wireless services. Management sees satellite demand as possible upside not included in its long-term plan, rather than a direct threat to its tower business.
Why Do Data Centers Fit American Tower’s Strategy?
Data centers and wireless towers are both critical parts of digital infrastructure. As AI and cloud computing grow, demand for well-connected data centers in major cities is rising. CoreSite focuses on interconnection-rich facilities, where many companies connect directly to each other and to cloud providers, which supports strong pricing and customer retention.
What Returns Does CoreSite Target?
Management continues to target attractive stabilized returns on new CoreSite developments, with higher utilization and pricing offering possible upside. These returns are higher than many traditional real estate investments, which explains why American Tower is directing more capital toward data centers.
How Do Long-Term Contracts Support Cash Flow?
Most of American Tower’s tower leases include annual rent escalators and long terms, providing predictable revenue growth. Even when new leasing slows, these contracts help stabilize cash flow, supporting the dividend through industry cycles.
What Risks Should Readers Consider?
Risks include carrier consolidation and churn, slower wireless spending, interest rate changes, currency movements in international markets and the cost of expanding data centers.
How Does American Tower Compare With Other Infrastructure REITs?
American Tower’s combination of a global tower portfolio and a growing data center business gives it diversified exposure to digital infrastructure. Compared with tower-only peers, CoreSite provides a faster-growing segment tied to AI and cloud demand.
How Strong Is the Balance Sheet?
American Tower’s leverage remains within its target range, giving it flexibility to fund growth and repurchases. The planned Canadian tower sale is expected to be immediately accretive to cash earnings per share, providing additional capital.
What Should Readers Watch Next?
Key indicators include CoreSite growth and expansion spending, US carrier leasing activity, the Canadian sale closing and next year’s guidance.
Final Thoughts
American Tower’s third quarter showed CoreSite emerging as a powerful growth engine while the US tower business works through carrier churn. A third guidance raise and steady capital returns support its outlook, while a recovery in US tower leasing remains key to stronger overall growth.