American Tower Tops Estimates and Lifts Outlook, But Shares Fall 5%

Core Insights - American Tower Corporation reported third-quarter 2025 results that exceeded expectations, yet the stock experienced a decline of over 5% intra-day on Tuesday [1] Financial Performance - Revenue increased by 7.7% year over year to $2.72 billion, surpassing the consensus estimate of $2.66 billion [2] - Adjusted funds from operations (AFFO) were reported at $2.78 per share, indicating solid growth compared to the previous year [2] - Total property revenue rose by 5.9% to $2.62 billion, driven by a 5.0% organic tenant billings growth across the tower portfolio [2] - The data center business showed significant growth, with revenue increasing by 14.1% to $267 million, attributed to record retail new leasing and rising demand from hybrid-cloud and AI-related workloads [2] Profitability Metrics - Net income surged by 216.9% to $913 million, benefiting from foreign-currency losses in the prior-year period [3] - Adjusted EBITDA increased by 7.6% to $1.82 billion, maintaining steady margins at 66.8% [3] Capital Allocation and Outlook - The company maintained a disciplined capital allocation strategy, declaring a quarterly dividend of $1.70 per share, which is a 4.9% increase year over year [3] - American Tower raised its full-year 2025 outlook for property revenue, adjusted EBITDA, and AFFO per share, partly due to favorable foreign exchange movements [3]