American Tower Beats Q4 Estimates but 2026 Revenue Outlook Disappoints

Core Viewpoint - American Tower Corporation reported strong fourth-quarter results, exceeding analyst expectations, but shares declined due to weaker-than-expected revenue guidance for 2026 [1] Financial Performance - The company posted adjusted earnings per share of $1.75, surpassing the consensus estimate of $1.47 by $0.28 [2] - Revenue for the quarter totaled $2.74 billion, exceeding analyst projections of $2.68 billion, representing a 7.5% increase year-over-year [2] - Total property revenue rose 7.6% year-over-year to $2.67 billion [2] 2026 Outlook - American Tower forecasted full-year property revenue for 2026 between $10.44 billion and $10.59 billion, with a midpoint of $10.515 billion, which is below the consensus estimate of $10.959 billion [3] - The midpoint revenue forecast implies approximately 2% growth compared to 2025 [3] Previous Year Performance - For the full year 2025, the company generated revenue of $10.65 billion, reflecting a 5.1% year-over-year increase [4] - Adjusted EBITDA for 2025 climbed 4.7% to $7.13 billion [4] - Adjusted funds from operations (AFFO) attributable to common stockholders rose 2.2% to $5.04 billion, or $10.76 per share [4] Future Projections - For 2026, American Tower projected adjusted EBITDA between $7.09 billion and $7.16 billion [5] - AFFO per share is expected to be in the range of $10.78 to $10.95 [5] - Capital expenditures are anticipated to total between $1.8 billion and $1.9 billion, including the development of approximately 1,700 to 2,300 communications sites globally [5]