Strategic Fiber Transaction Completed
Closed the sale of the Fiber Business to Zayo and EQT on May 1, 2026 for net cash proceeds of $8.4B, resulting in a loss on disposal of $280M in Q2.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Crown Castle completed the sale of its Fiber Business for $8.4B in Q2 FY2026, marking its transition to a pure-play U.S. tower operator. Proceeds were used to repay $7.2B of debt and repurchase $1B of stock, strengthening the balance sheet and lowering interest costs. Core site rental revenues fell 4% due to the termination of its DISH lease and Sprint cancellations, though new leasing and contractual escalators provided a partial offset. While net income dropped 68% to $94M on a $280M loss from the Fiber disposal, income from continuing operations rose 13% as interest expense declined sharply. The outlook remains pressured by a $220M expected annual revenue headwind from the DISH termination, but restructuring savings and reduced leverage position the company for improved profitability.
Revenue
$1.01B
-4.91% YoY
EPS (Diluted)
$0.22
-67.16% YoY
Operating Income
$470M
-7.11% YoY
Source: SEC XBRL
Crown Castle (CCI) reported Q2 FY2026 revenue of $1.01B, down 4.9% year over year. Operating margin was 46.6%, down 1.1 points from 47.7% a year earlier. CCI's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.16 | 0.39 | Miss -58.7% |
| Mar 2026 | 0.34 | 0.39 | Miss -13.3% |
| Dec 2025 | 0.67 | 0.51 | Beat +31.2% |
| Sep 2025 | 0.74 | 0.53 | Beat +39.9% |
Adjusted (non-GAAP) EPS of $0.16 versus the $0.39 analyst consensus — a -58.7% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.22.
Compiled by AI from 10-Q Item 2 of this filing
Closed the sale of the Fiber Business to Zayo and EQT on May 1, 2026 for net cash proceeds of $8.4B, resulting in a loss on disposal of $280M in Q2.
Source: 10-Q Item 2 MD&A
Delivered a notice of default and termination to DISH, asserting over $3.5B in remaining payments owed; excluded DISH from 2026 outlook, expecting a $220M year-over-year reduction in site rental revenues.
Source: 10-Q Item 2 MD&A
Launched in February 2026 to reduce headcount, with $14M in charges recorded in H1 2026, targeting $65M in annualized operating cost savings.
Source: 10-Q Item 2 MD&A
Used Fiber sale proceeds to retire all 2016 Credit Facility and Commercial Paper outstanding, repay maturing notes, and repurchase $530M face value of senior notes in the open market, lowering the weighted-average interest rate to 3.7%.
Source: 10-Q Item 2 MD&A
Q2 site rental revenues fell 4% to $967M, driven by $54M in non-renewals from DISH and Sprint, partially offset by new leasing and contractual escalators.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Approximately 93% of site rental revenues come from T-Mobile, AT&T, and Verizon, so any consolidation or network strategy change could materially reduce revenue.
Source: 10-Q Item 2 MD&A
The termination of DISH's master lease and ongoing dispute could result in prolonged litigation and loss of expected cash flows, with $220M in annual site rental revenue at risk.
Source: 10-Q Item 2 MD&A
Total liabilities of $24.8B exceed total assets of $21.5B, and current liabilities of $3.3B exceed current assets of $1.7B, indicating potential liquidity strain despite recent debt paydowns.
Source: 10-Q Balance Sheet (XBRL)
Now a pure-play tower operator, the company is vulnerable to any slowdown in carrier network investment or technology shifts that reduce demand for macro towers.
Source: 10-Q Item 2 MD&A
The 2026 restructuring plan may not achieve the targeted $65M in annual savings, and headcount reductions could disrupt operations or customer relationships.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.01 $B | 1.06 $B | -4.91% |
Cost of Revenue $M | 19.00 $M | 27.00 $M | -29.63% |
Operating Income $M | 470.00 $M | 506.00 $M | -7.11% |
Net Income $M | 94.00 $M | 291.00 $M | -67.70% |
EPS (Basic) $ | 0.22 $ | 0.67 $ | -67.16% |
EPS (Diluted) $ | 0.22 $ | 0.67 $ | -67.16% |
SG&A Expense $M | 97.00 $M | 99.00 $M | -2.02% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
CCI reported FY2025 revenue of $4.26B (down 4.4% YoY) amid a strategic portfolio shift, but returned to profitability with net income of $444M versus a prior-year loss of $3.90B, supported by strong operating cash flow of $3.06B.
Other companies in Telecom Tower REITs