American Tower Q2 revenue beats estimates on strong leasing demand 

Overview

• U.S. communications tower REIT's Q2 revenue rose 4.7%, beating analyst expectations

• Adjusted EBITDA for Q2 beat consensus, rising 3.2% yr/yr

• Company completed divestitures in the Philippines and Bangladesh during Q2

Outlook

• American Tower raises full-year 2026 outlook for property revenue to $10.695-$10.845 bln

• Company expects full-year 2026 AFFO attributable to AMT common stockholders per Share of $11.00-$11.17

• Company sees strong demand for digital infrastructure driven by mobile, cloud, and AI growth

Result Drivers

• LEASING DEMAND - Co said strong global leasing demand and record leasing at CoreSite data centers drove Q2 results

• FOREIGN CURRENCY GAINS - Net income growth was significantly impacted by foreign currency gains versus prior-year losses

• STRAIGHT-LINE REVENUE IMPACT - Property revenue growth rate included a negative impact from lower straight-line revenue recognition

Company press release: ID:nBw9YGcsHa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for American Tower Corp is $206.50, about 23.8% above its July 27 closing price of $166.74

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 26 three months ago

Reuters Recommended Reads

• July 27 - Canada's Celestica Q2 results beat estimates on strong data center, cloud demand

• July 27 - Applied Digital beats quarterly revenue estimates on surging AI infrastructure demand

• July 28 - Meta, BlackRock partner on $14 billion El Paso data center

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)