American Tower stock weighs CoreSite-led 2026 outlook upgrade

American Tower raised its full-year 2026 outlook for the third time this year after reporting stronger performance at its CoreSite data-center platform. The company announced the update with its third-quarter results on October 27 for the period ended September 30. In its earnings release, American Tower said total revenue increased 2.5 percent to 2.785 billion US dollars and property revenue rose 4.5 percent to 2.734 billion US dollars.

American Tower stock traded at 168.90 euros on Lang & Schwarz at 12:46 CET on Tuesday, November 10, 2026, 0.09 percent below the Xetra close of Monday, November 9.

CoreSite drives the upgrade

CoreSite was the clearest source of operating momentum. Cash revenue in American Tower's Data Centers segment increased 16.3 percent in the third quarter. The company now expects full-year Data Centers property revenue of 1.218 billion to 1.228 billion US dollars, a midpoint growth rate of 16.1 percent.

The revised group forecast puts 2026 property revenue at 10.785 billion to 10.865 billion US dollars. The midpoint is 55 million US dollars above the previous outlook. American Tower maintained the midpoint of its adjusted EBITDA forecast at 7.275 billion US dollars, with a range of 7.248 billion to 7.303 billion US dollars.

Management also raised the AFFO outlook per share to 11.04 to 11.16 US dollars from 11.00 to 11.17 US dollars. AFFO, or adjusted funds from operations, is a key cash-flow measure for real estate investment trusts. The company attributed the 0.02 US dollar increase in the midpoint primarily to capital-allocation decisions and share repurchases.

Profit trends remain uneven

The quarterly figures show why the outlook increase does not remove all risks. Net income fell 14.4 percent to 781 million US dollars, while net income attributable to common stockholders declined 10.3 percent to 766 million US dollars. American Tower said the comparison was affected by unrealized losses on equity investments in the current quarter versus unrealized gains a year earlier.

On the recurring operating side, AFFO attributable to common stockholders rose 2.4 percent to 1.335 billion US dollars, and AFFO per share increased 3.2 percent to 2.87 US dollars. The company also reported 1.1 percent organic tenant billings growth. Its U.S. and Canada property outlook includes a negative effect of more than 3 percent from lower non-cash straight-line revenue recognition, which makes reported growth less representative of cash operating trends.

Capital allocation and next steps

American Tower repurchased approximately 1.8 million shares for 315 million US dollars during the quarter. On October 23, the board authorized an additional 2.0 billion US dollars for future repurchases, while approximately 1.1 billion US dollars remained available under the existing program as of October 20.

The company also expects to sell its Canadian subsidiaries for approximately 288 million Canadian dollars, or approximately 202 million US dollars, during the fourth quarter, subject to customary closing conditions. The transaction is part of management's effort to simplify the portfolio and improve financial flexibility.

The main investor question is whether CoreSite's double-digit growth can offset weaker near-term conditions in parts of the tower portfolio. The company is allocating 695 million US dollars of its 2026 development spending to the Data Centers segment and expects to build 1,300 to 1,900 communications sites globally, keeping both growth and capital intensity in focus.

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