American Tower Corporation reported first‑quarter 2026 revenue of $2.74 billion, up 6.8% year‑over‑year, and adjusted funds from operations (AFFO) of $2.84 per share, beating the consensus estimate of $2.70. The earnings beat was driven by a mix of higher property revenue and a stronger data‑center portfolio, which helped offset modest cost inflation and the impact of a weaker U.S. dollar on foreign‑currency‑denominated leases.
Property revenue rose 6.8% to $2.67 billion, while the data‑center segment added $1.175 billion to property revenue, a 19% increase from the prior year. Cash revenue from data‑center operations grew 17%, reflecting continued demand for cloud and AI workloads. The segment’s contribution to overall profitability was significant, though the company did not disclose operating profit for the data‑center business in this release.
Gross margin on property revenue expanded to 75.1% from 74.7% in the prior quarter, and adjusted EBITDA margin reached 67.0%. Management attributed the margin improvement to favorable foreign‑currency exchange rates and a higher mix of high‑margin data‑center leases. The company also noted that the U.S. dollar’s appreciation helped lift revenue in foreign‑currency‑denominated contracts, supporting the upward revision of its full‑year outlook.
American Tower raised its 2026 property‑revenue guidance to $10.585 billion–$10.735 billion, an increase that reflects stronger Latin‑American demand and the positive impact of foreign‑currency gains. CEO Steve Vondran said, "The structural growth drivers of our business continue to strengthen, with rising mobile data consumption, accelerating cloud adoption, and the rapid expansion of AI‑driven workloads all pointing toward sustained investment in high‑quality digital infrastructure." The guidance lift signals management’s confidence in continued demand for the company’s tower and data‑center assets.
In pre‑market trading, the company’s stock advanced 1.44%, reflecting investor enthusiasm for the earnings beat and the guidance upgrade. Management also highlighted headwinds such as elevated churn in Brazil and cost pressures in Africa, but noted that these were offset by strong performance in other regions and the company’s disciplined capital allocation strategy.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.