American Tower reported second-quarter results on Tuesday that surpassed analyst expectations for both revenue and profit, marking the company's second upward revision to its full-year guidance this year, driven by robust data center performance and favorable currency exchange rates.
For the second quarter, American Tower posted total revenue of $2.75 billion, a 4.7% increase year-over-year and exceeding the consensus estimate of $2.7 billion. Adjusted earnings per share came in at $1.86, well above the forecast of $1.55. Core property business revenue grew 6.3% to $2.69 billion.
The data center segment was the standout performer in the quarter. CoreSite, its data center subsidiary, set a new record for leasing activity, with new business volume in the single quarter exceeding the total for the entire year of 2021. This achievement marks the fifth consecutive quarter of double-digit revenue growth for the unit. Data center cash revenue increased by approximately 12%, and nine of the world's top ten AI companies are now deployed within CoreSite facilities.
Based on this strong performance, the company has raised its full-year property revenue guidance for 2026 by $110 million to a midpoint of $10.77 billion. The adjusted EBITDA guidance has been increased by $45 million, and the adjusted funds from operations (AFFO) per share guidance has been lifted by $0.09 to a range of $11.00 to $11.17. The company also specifically upgraded its data center growth expectation from 13% to approximately 15%.
American Tower anticipates that 2026 will represent the trough year for AFFO per share growth, citing factors including customer losses from DISH, higher refinancing costs, and a decline in service business contributions. The company operates roughly 149,000 communication towers globally, serving major telecom carriers such as AT&T, Verizon, and T-Mobile.
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