AI Takeaway
CCI reported Q1 FY2026 revenue of $1.01B (down 4.8% YoY) and operating income of $465M (down 10.7% YoY), but net income swung sharply positive to $151M versus a loss of $464M in the prior year period, driven by the absence of prior-year impairment or one-time charges.
Revenue
$1.01B
-4.81% YoY
EPS (Basic)
$0.34
++131.78% YoY
Operating Income
$465M
-10.75% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue fell 4.8% YoY to $1.01B from $1.061B, suggesting reduced leasing activity or tenant churn in CCI's tower and small cell portfolio. This top-line pressure is a key concern for investors monitoring the company's core recurring revenue base.
Source: Source: 10-Q Income Statement
Operating margin contracted approximately 310 basis points YoY to 46.0% from 49.1%, as the revenue decline outpaced cost reductions. SG&A expenses fell modestly by 3.2% to $90M, providing only partial offset to the revenue shortfall.
Source: Source: 10-Q Income Statement
Net income improved dramatically to $151M ($0.34 diluted EPS) from a loss of $464M (-$1.07 diluted EPS) in Q1 FY2025, likely reflecting the absence of a large non-cash impairment or restructuring charge that weighed on the prior-year period.
Source: Source: 10-Q Income Statement
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Upgrade to unlockCCI's current ratio stands at a very low 0.27, with current liabilities of $4.705B vastly exceeding current assets of $1.254B and cash of only $55M. This imbalance suggests substantial debt maturities coming due in the near term, which could require refinancing in a potentially unfavorable interest rate environment. Failure to refinance on acceptable terms could strain the company's financial flexibility.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $0.34 versus the $0.39 analyst consensus — a -13.3% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.01B | $1.06B | -4.81% |
Cost of Revenue | $26M | $28M | -7.14% |
Operating Income | $465M | $521M | -10.75% |
Net Income | $151M | $-464M | +132.54% |
EPS (Basic) | $0.34 | $-1.07 | +131.78% |
EPS (Diluted) | $0.34 | $-1.07 | +131.78% |
SG&A Expense | $90M | $93M | -3.23% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $31.39B | $31.76B | -1.16% |
Current Assets | $1.25B | $1.08B | +15.58% |
Total Liabilities | $33.31B | $33.01B | +0.90% |
Current Liabilities | $4.71B | $2.95B | +59.49% |
Cash & Equivalents | $55M | $60M | -8.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $509M | $641M | -20.59% |
Investing Cash Flow | $-313M | $-255M | -22.75% |
Financing Cash Flow | $-179M | $-403M | +55.58% |
Share Buybacks | $25M | $21M | +19.05% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 46.0% | 49.1% | -3.07% |
Net Margin | 15.0% | — | — |
ROA | 0.5% | — | — |
Current Ratio | $0.267 | — | — |
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CCI's Q1 FY2026 results showed revenue declining 4.8% YoY to $1.01B and operating income falling 10.7% to $465M, reflecting headwinds in its tower leasing business. However, net income swung sharply positive to $151M ($0.34 EPS) versus a loss of $464M in Q1 FY2025, largely due to the absence of prior-year one-time charges. A key concern is the current ratio of just 0.27, driven by a 59.5% surge in current liabilities to $4.705B.
CCI's net income improved from -$464M to +$151M YoY despite a 4.8% revenue decline, primarily because the prior-year period included a large non-cash charge (likely an impairment or restructuring) that did not recur in Q1 FY2026. Operationally, the business actually weakened, with operating income falling 10.7% and operating cash flow declining 20.6%. Investors should distinguish between this accounting improvement and underlying business performance.
Yes, CCI's balance sheet presents notable risks: total liabilities of $33.3B exceed total assets of $31.4B, implying negative stockholders' equity of approximately $1.92B. Current liabilities surged 59.5% YoY to $4.705B against only $55M in cash and $1.254B in current assets, yielding a current ratio of just 0.27. This suggests significant near-term debt maturities that will likely require refinancing.
CCI's revenue declined 4.8% YoY to $1.01B in Q1 FY2026, down from $1.061B in Q1 FY2025, indicating continued pressure on its tower and small cell leasing business. Operating cash flow also fell more steeply at -20.6% YoY to $509M, suggesting the revenue decline is translating into meaningful cash flow deterioration. These trends reflect reduced carrier spending or tenant churn in CCI's infrastructure portfolio.
Based on the financial data, the most prominent risks for CCI include near-term liquidity pressure from $4.705B in current liabilities against minimal cash of $55M, ongoing revenue contraction of 4.8% YoY, and a highly leveraged balance sheet with negative stockholders' equity. Operating margin also compressed by ~310 basis points to 46.0%, and operating cash flow fell 20.6% YoY, pointing to deteriorating cash generation capacity.