American Tower (AMT) delivered solid financial performance in 2025, driven by strong growth in its data center business, while issuing a cautious but “de-risked” outlook for 2026 following a major tenant default.
American Tower Q4 2025
American Tower reported solid revenue growth in the fourth quarter of 2025, while quarterly net income declined.
For Q4 2025, total revenue of American Tower rose 7.5 percent to $2,738 million, driven by a 7.6 percent increase in total property revenue to $2,673 million. However, net income fell 32.0 percent to $837 million during the quarter.
For the full year 2025, American Tower delivered steady growth across key metrics. Total revenue increased 5.1 percent to $10,645 million, while total property revenue grew 3.7 percent to $10,305 million. Net income of American Tower for the year rose 15.3 percent to $2,629 million.
A key growth driver was its data center segment, where revenue increased 14 percent in 2025. The performance was fueled by strong demand at CoreSite facilities and rising hybrid cloud deployments from enterprise customers.
Attributable AFFO per share rose 8 percent in 2025, reflecting stable leasing activity and operating leverage across its global portfolio.
2026 Guidance Reflects DISH Impact
For 2026, American Tower expects property revenue growth of about 3 percent. American Tower CEO Steven Vondran clarified that after normalizing for churn related to DISH Network, property revenue would imply 5 percent growth.
The DISH default is expected to create a 4 percent headwind to U.S. and Canada property revenue in 2026.
AFFO per share growth is projected at 1 percent for 2026. When adjusted for the DISH impact, normalized AFFO growth would also be around 5 percent. American Tower revealed that by removing 100 percent of DISH revenue from its 2026 outlook, any future collections would be treated as upside, effectively “de-risking” the business.
Strategic Shift Toward Developed Markets and Data Centers
American Tower is sharpening its capital allocation strategy, prioritizing developed markets and its CoreSite data center platform to enhance earnings durability.
In the U.S., wireless carriers are shifting from broad 5G coverage to capacity-focused densification. The company is also positioning itself for the next technology cycle, monitoring the 800 MHz spectrum band earmarked for future 6G deployments.
American Tower reported achieving mid-teens or higher stabilized yields on new data center developments, supported by its interconnection-rich offerings.
$1.9 Billion Capex Plan for 2026
American Tower plans to deploy $1.9 billion in capital in 2026, of which $1.8 billion is discretionary. About 85 percent of growth capital expenditure will be directed toward developed markets and CoreSite.
The company intends to build more than 700 new sites in Europe as part of its international expansion strategy.
American Tower is targeting 200 to 300 basis points of tower cash EBITDA margin expansion over the next five years.
Key cost efficiency initiatives include:
Expanding its U.S. land optimization program globally to reduce ground lease expenses by acquiring land under towers.
Implementing a unified global sourcing strategy to leverage economies of scale.
Standardizing asset care and maintenance practices worldwide to lower long-term upkeep costs.
Early-stage integration of AI for predictive maintenance, power utility management, and process automation to improve operational efficiency beyond base targets.
Regional and Financial Headwinds
In Latin America, American Tower expects an 8 percent churn rate in 2026, resulting in a projected 3 percent decline in regional revenue due to delayed and accelerated carrier consolidations.
Additionally, higher interest rates are anticipated to create an approximately 1 percent headwind to AFFO growth as legacy debt is refinanced at elevated rates.
Despite near-term pressures from tenant churn and refinancing costs, American Tower underscored that its diversified global portfolio, expanding data center footprint, and disciplined capital deployment position the company for sustainable long-term growth.
SHAFANA FAZAL
