AMTAmerican TowerQ2 2026Earnings Analysis

Total Revenue Growth of 5% in Q2 and 6% for H1 FY2026

Total revenues increased to $2,749.1 million in Q2 FY2026 from $2,626.9 million in Q2 FY2025 (up 5%), and to $5,486.6 million for the six months ended June 30, 2026 from $5,189.7 million (up 6%). Growth was driven by Africa & APAC (+23% Q2), Data Centers (+13% Q2), Latin America (+13% Q2) and Europe (+11% Q2) property segments, partially offset by a 3% decline in U.S. & Canada property revenue and a 38% decline in Services revenue.

Source: 10-Q Item 2 MD&A

DISH Wireless Bankruptcy and SCA Termination

DISH Network subsidiary DISH Wireless defaulted on its Strategic Collocation Agreement (SCA) as of January 2026; AMT terminated the SCA effective June 2, 2026 and amended its complaint on June 15, 2026 to add damages claims and name EchoStar Corporation as a party. On June 30, 2026, DISH filed for Chapter 11 bankruptcy. The company recorded $17.5 million of DISH-related impairment charges during the six months ended June 30, 2026, and beginning January 1, 2026, 100% of DISH revenue is reflected in churn.

Source: 10-Q Item 2 MD&A

AT&T Mexico Arbitration Continues with Additional Reserves

AMT is in arbitration with AT&T Mexico (approximately $300 million of 2025 tenant revenue) over lease amount calculations, with a hearing scheduled for August 2026. The company incurred approximately $20 million of additional reserves during the six months ended June 30, 2026 (following ~$30 million in FY2025), and expects to record further reserves until the arbitration is settled.

Source: 10-Q Item 2 MD&A

Divestitures of Philippines and Bangladesh Operations

During Q2 FY2026, AMT completed the sale of its Philippines subsidiary (ATC Philippines) on June 15, 2026 and its controlling interest in Kirtonkhola Tower Bangladesh Limited (KTBL) on June 29, 2026, generating a net gain on sales of $20.4 million, reflected in the Africa & APAC property segment prior to divestiture.

Source: 10-Q Item 2 MD&A

Data Centers Segment Expansion

The Data Centers segment revenue grew 13% in Q2 and 16% for H1 FY2026, reaching $297.1 million and $586.0 million respectively, driven by new lease commencements, customer expansions, increased power consumption/pricing, and interconnection net additions across 30 operating data centers comprising approximately 3.8 million net rentable square feet across 11 U.S. markets.

Source: 10-Q Item 2 MD&A

DISH Wireless defaulted on its Strategic Collocation Agreement as of January 2026 and filed for Chapter 11 bankruptcy on June 30, 2026, after AMT terminated the SCA effective June 2, 2026. DISH represented approximately 2% of total annual property revenue and 4% of U.S. & Canada property revenue in 2025, and the company recorded $17.5 million in DISH-related impairment charges during H1 FY2026, with full DISH revenue now reflected in churn.

Source: 10-Q Item 2 MD&A

AMT is engaged in ongoing arbitration with AT&T Mexico, which represented approximately $300 million of 2025 tenant revenue, over disputed lease calculations and rent abatement claims, with a hearing scheduled for August 2026. The company has incurred approximately $50 million in cumulative reserves related to this customer (FY2025 plus H1 FY2026) and expects to record additional reserves until the dispute is resolved.

Source: 10-Q Item 2 MD&A

Churn was approximately 5% of tenant billings during the six months ended June 30, 2026, primarily driven by DISH Wireless in the U.S. & Canada segment and customer cancellations in Brazil within the Latin America segment ($13.5 million in Q2 and $23.9 million in H1). Continued elevated churn could pressure segment revenue growth, particularly in the U.S. & Canada property segment which already saw a 3% revenue decline.

Source: 10-Q Item 2 MD&A

Segment revenue and expenses across Africa & APAC, Europe, and Latin America were materially impacted by foreign currency translation, including movements in Nigerian Naira, Ghanaian Cedi, South African Rand, Euro, Brazilian Real, and Mexican Peso. For example, Latin America segment revenue growth of $133.1 million for H1 FY2026 included a $94.8 million currency translation benefit, indicating significant sensitivity of reported results to FX fluctuations.

Source: 10-Q Item 2 MD&A

Services segment revenue decreased 38% in Q2 and 26% for H1 FY2026, driven by declines in site application, zoning and permitting services, structural and mount analyses, and construction management services, indicating softer discretionary tower-related service demand from carriers.

Source: 10-Q Item 2 MD&A