American Tower Corporation (AMT) | The Buildout — AI Infrastructure
The Verdict
American Tower owns and operates multitenant communications real estate—cell towers, distributed antenna systems, and related services—and, through CoreSite, data center interconnection hubs. Towers underpin the mobile networks that carry AI-driven traffic; CoreSite is the direct AI exposure, hosting AI companies and cloud providers for data exchange and private on-ramps. The tower business is the primary revenue engine, while CoreSite is the smaller but fastest-growing segment.
| Market Cap | — |
| Revenue (TTM) | $10.9B |
| Revenue Growth | +6.7% |
| EBITDA Margin (TTM) | 63.5% |
| Net Debt | $43.2B |
| Earnings Beats | 6 of 7 |
| P/E (TTM) | — |
| EV/EBITDA (TTM) | — |
What We Like
- $50B+ non-cancellable customer lease revenue as of March 31, 2026 backs tower stability.
- CoreSite hosts 9 of the top 10 AI companies and 3 of the top 5 Neo clouds.
- Data center held-for-development pipeline grew 200 MW to ~480 MW, with over $700M of 2026 capex.
- Europe program targets 700+ new sites in 2026 and a 3,000-site Telefónica contract over 10 years.
- Tower cash EBITDA margins expanded more than 300 bps over the past three years; additional 200–300 bps targeted by 2030.
What We’re Watching
- CoreSite's 36 MW under construction ended Q2 roughly 8% leased; management says demand is strong and it is avoiding underpricing.
- Buyback pace slowed in Q2 despite ~$1.4B remaining on the $2B program.
- Latin America organic tenant billings declined over 2% in Q2 on Brazil churn; recovery is expected only in 2027.
- Refinancing headwind rose to ~150 bps from ~100 bps for 2026.
The thesis is intact but forward-dated. Guidance has been raised twice, the APAC exit is complete, and the CoreSite story is accelerating, but reported 2026 AFFO/share growth is roughly flat FX-neutral before normalization. The open question is whether the 2027 AFFO growth inflection and CoreSite's AI-driven leasing convert to reported results as management describes.
Earnings Beat
Q2 2026 revenue was $2,749.1M with gross margin of 73.0%; EBITDA was $1,783.2M, or 64.9% of revenue. Data center property revenue grew ~12% excluding straight-line, marking a fifth consecutive double-digit quarter. Management said CoreSite added more new business in the quarter than in all of 2021.
| Metric | Q2 FY2026 | Q1 FY2026 | Q2 FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.7B | $2.7B | $2.6B | +4.7% |
| Gross margin | 73.0% | 73.9% | 73.8% | -80bps |
| EBITDA | $1.8B | $1.7B | $1.7B | +4.4% |
| EPS | $1.86 | $1.79 | $0.78 | +137.6% |
| Data center property revenue growth excluding straight-line | ~12% | ~17% | n/a | — |
We added more new business this quarter than we did for the entire year of 2021.— Rod Smith, CFO, July 28, 2026
Management tone: Management's tone shifted from 'strongest strategic footing in at least a decade' in Q1 to 'never been better positioned' in Q2. On the Q2 call, executives separated operational performance from FX, straight-line, and one-time tax items, and explicitly described 2026 as a trough year.
Management Guidance
On the Q2 2026 call, management raised the property revenue outlook by $110M at the midpoint, adjusted EBITDA by $45M, and attributable AFFO/share by $0.09. Data center growth was raised to ~15% from ~13%; organic tenant billings were reiterated at ~1% (4% ex-DISH); services revenue was maintained at $245M. The refinancing headwind was increased to ~150 bps from ~100 bps.
Trajectory
Revenue has been essentially flat: $2,717M in Q3 FY2025, $2,738M in Q4, $2,738M in Q1 FY2026, and $2,749M in Q2 FY2026. Gross margin compressed from 75.1% to 73.0% across that span, while the financial record shows EBITDA margins broadly stable. Reported AFFO/share growth is roughly flat FX-neutral in 2026 because of DISH churn, refinancing, and the services step-down; normalizing for those, management's bridge is about 7% FX-neutral growth.
The Model
The model locks FY+1 revenue at $10,980M and EBITDA at $7,093M, a 64.6% margin. FY+2 revenue is $11,830M with EBITDA of $7,713M, a 65.2% margin. The near term is anchored by a stable revenue base and data center growth; FY+2 assumes continued CoreSite expansion and the tower recovery that management frames as the 2027 inflection.
| Metric | FY2025 | Next FY (E) | Following FY (E) |
|---|---|---|---|
| Revenue | $10.6B | $11.0B | $11.8B |
| YoY Growth | — | +3.1% | +7.7% |
| EBITDA | $6.9B | $7.1B | $7.7B |
| EBITDA Margin | 65.2% | 64.6% | 65.2% |
Projections are the median of 5 independent model runs.
On the Q2 2026 call, management raised the property revenue outlook by $110M at the midpoint, adjusted EBITDA by $45M, and attributable AFFO/share by $0.09. Data center growth was raised to ~15% from ~13%; organic tenant billings were reiterated at ~1% (4% ex-DISH); services revenue was maintained at $245M. The refinancing headwind was increased to ~150 bps from ~100 bps.
What Could Go Right — and Wrong
- DISH litigation resolution would add upside versus guidance that currently excludes DISH.
- CoreSite signs leases on the 36 MW under construction and continues expanding the ~480 MW pipeline.
- A signed U.S. build-to-suit or comprehensive carrier framework converts services capability into contracted tower growth.
- Upper C-band spectrum deployment starting in 2027 pulls forward tower amendments and equipment installations.
- Latin America organic tenant billings turn positive earlier than the 2027 plan.
- DISH dispute remains unresolved, keeping the 400 bps AFFO headwind fresh into 2027.
- CoreSite low pre-leasing reflects softer demand rather than deliberate pricing discipline.
- Higher interest rates keep the refinancing headwind at or above 150 bps, shallowing the inflection.
- Brazil churn does not peak, and Latin America organic growth stays negative.
- Power and electrical component cost inflation raises CoreSite build costs and extends lead times.
Looking Ahead
The next twelve months center on the Stonepeak conversion, CoreSite pre-leasing as 2027/2028 capacity approaches delivery, and the 2027 guidance release. Management expects 2026 to be a trough and points to a 2027 AFFO/share inflection; the data center pipeline and tower densification are the key signposts.
- Q3 2026Stonepeak CoreSite conversion — AMT ownership moves from ~72/28 to ~64/36; tests AFFO neutrality.
- H2 2026CoreSite pre-leasing signpost — Watch whether 36 MW under construction leases up before 2027/2028 delivery.
- 20272027 full-year guidance — Tests management's mid-to-high single-digit AFFO/share growth inflection.
- 2027Upper C-band spectrum deployment — Start of ~800 MHz spectrum cycle; may drive tower amendments.
- 2027Latin America organic growth — Management expects positive low-single-digit OTBG; normalization by 2028.
- 2027/2028CoreSite capacity delivery — Under-construction and pipeline assets convert to revenue.
Financials
Annual Summary
| Metric | FY2024 | FY2025 | TTM | YoY |
|---|---|---|---|---|
| Revenue | $10.8B | $10.6B | $10.9B | -1.5% |
| Gross Margin | 73.1% | 73.7% | 73.2% | +60bps |
| EBITDA | $6.9B | $6.9B | $53.1B | +1.1% |
| EBITDA Margin | 63.5% | 65.2% | 63.5% | +167bps |
| Net Income | $2.3B | $2.5B | $3.4B | +12.2% |
| Free Cash Flow | $3.7B | $3.8B | $29.4B | — |
| Net Cash | — | — | — | — |
Key Ratios (Trailing)
- P/E TTM—
- EV/EBITDA TTM—
- EV/Revenue TTM—
- Price/FCF TTM—
- Gross Margin (TTM)73.2%
- EBITDA Margin (TTM)63.5%
- Net Margin (TTM)30.9%
- ROIC8.2%
- FCF Conversion57.0%
- SBC / Revenue1.5%
The Company
American Tower is a global digital infrastructure REIT. Its core business is leasing space on multitenant communications sites—towers, distributed antenna systems, and related assets—to wireless carriers, broadcasters, data providers, and governments. Through the CoreSite platform, it operates 30 data center facilities across 11 U.S. markets, positioned as interconnection hubs for AI companies, cloud providers, and ecosystem participants. That footprint hosts 9 of the top 10 AI companies and 3 of the top 5 Neo clouds.
Operationally, AMT runs U.S. & Canada, Latin America, Europe, Africa & APAC, Data Centers, and Services segments. As of March 31, 2026, it owned or operated 131,726 owned towers, 17,224 operated towers, and 858 owned DAS sites globally. CoreSite had about 3.8 million net rentable square feet, with megawatts in service grown 1.5x since the 2021 acquisition and a development pipeline that management says can nearly triple capacity from there. The tower portfolio is supported by more than $50 billion of non-cancellable customer lease revenue.
Business Segments
Competitive Landscape
American Tower's 10-K names Crown Castle, SBA Communications, Vertical Bridge, Telesites, and Cellnex as competitors in communications real estate. In its own words, the company is 'one of the largest global real estate investment trusts and a leading independent owner, operator and developer of multitenant communications real estate.' The tower market remains carrier-concentrated, and SBA's neighbor commentary separately confirms steady U.S. tower leasing.
- Crown CastleNamed in filings; not discussed.
- SBA CommunicationsNamed in filings; not discussed.
- Vertical BridgeNamed in filings; not discussed.
- TelesitesNamed in filings; not discussed.
- CellnexNamed in filings; not discussed.
Supply Chain
American Tower sits between tenants—wireless carriers, broadcasters, cloud and AI companies—and the physical sites and interconnection capacity they need. Towers carry zoning and long-duration lease protections; CoreSite is downstream of power and electrical suppliers.
More on AMT: Earnings recap