- AFFO Per Share Growth: 1% expected in 2026 (5% normalized for DISH churn), following 8% growth in 2025 (13% in Q4).
- Capital Allocation: $1.9 billion deployment, with 85% focused on developed markets, including $700M+ in data center investments.
- Data Center Growth: Double-digit growth in CoreSite, driven by AI and hybrid cloud demand, with new campus expansions in Bay Area and Dallas-Fort Worth.
- DISH Exposure Impact: $200M annual revenue exposure (4% of US revenue) through 2035–2036; litigation resolution could provide upside to guidance.
- Margin Expansion: 200–300 bps cash margin improvement by 2030, building on 300 bps growth achieved over recent years via cost controls and operational efficiency.
Guidance and Outlook
The company's guidance for 2026 includes property revenue growth of approximately 3% and adjusted EBITDA growth of approximately 2% when excluding net straight-line and FX impacts. Attributable AFFO per share growth is expected to be approximately 1% year-over-year, or 5% growth normalized for the impact of one-time DISH-related churn. The company plans to deploy $1.9 billion in capital, with approximately 85% directed towards developed market platforms.
Growth Drivers
American Tower's revenue growth is driven by mobile data consumption, with carriers shifting from initial 5G coverage-oriented activity to capacity-oriented activity. The company's U.S. portfolio is expected to deliver durable long-term mid-single-digit organic growth, while internationally, rising data consumption is driving durable network investment, particularly in Europe and emerging markets. The data center business continues to yield impressive double-digit growth, driven by demand for hybrid and multi-cloud deployments and positive pricing actions.
Valuation
With a P/E Ratio of 35.27 and an EV/EBITDA of 20.68, the market is pricing in a certain level of growth momentum for American Tower. The Dividend Yield of 3.58% is also attractive, indicating a relatively stable return for investors. The company's ROIC of 7.59% suggests that it is generating returns above its cost of capital, but the high ROE of 68.13% may be influenced by the company's financial leverage, as indicated by the Net Debt / EBITDA ratio of 6.79.
Operational Highlights
The company is seeing growth drivers in fixed wireless and AI, with carriers investing in mobile network traffic and data demand. CoreSite is experiencing record sales growth and demand on its campuses, driven by enterprises and AI workloads. The company is selectively looking at opportunities in new key metros and has purchased land in these areas to maximize the value of CoreSite.
Margin Expansion
The company aims to achieve 50 basis points of margin expansion per year through cost management and controls, driven by organic growth, cost management, and operating leverage. The cash margin guidance is expected to increase by 200-300 basis points by 2030. The addition of a Chief Operating Officer will help drive efficiency and best practices globally.