American Tower Q3 2026: US Tower Leasing Slows, Organic Growth Flat

American Tower (AMT) reported third-quarter 2026 results for the period ended September 30 in an 8-K earnings release and on its October 27, 2026 earnings call, and the main change was a clear slowdown in US tower leasing: organic tenant billings growth in the U.S. & Canada segment fell to flat [1]. Coming into the quarter, the open questions were whether US colocation and amendment activity could hold at $34 million a quarter, whether the CoreSite data center business could accelerate, how far Brazil churn and the AT&T Mexico arbitration would erode Latin America, and whether Africa's second-half slowdown would stop near 7%. The US came in below that baseline, while Africa grew organic tenant billings 8.2%, CoreSite revenue rose 17.4%, and Latin America's −2.1% was in line with plan [1][2]. The other businesses offset the US slowdown, and the midpoint of full-year AFFO per share guidance rose by $0.02, mainly because of share repurchases [1][2].

American Tower is one of the world's largest communications infrastructure REITs. It leases space on its towers to wireless carriers under long-term contracts and owns 30 CoreSite data centers in the United States [3]. AT&T, T-Mobile and Verizon account for 85% of U.S. & Canada segment revenue [4]. Tower revenue equals the prior year's billings plus new colocations, amendments and escalators, minus churn, and adding a tenant to an existing tower adds almost no cost.

US tower leasing slowed by about a quarter and organic growth fell to zero

US colocation and amendment billings fell from $34 million in each of the first two quarters to $25 million in the third quarter, 39% below the $41 million of the prior-year quarter [1]. Churn was $63 million, unchanged from the first half, and the 10-Q attributes the excess of churn over contractual escalations primarily to DISH [1][5]. As a result, U.S. & Canada organic tenant billings growth fell from 0.7% in the second quarter to 0.0%, compared with 3.9% a year earlier [1].

Management described the decline as a front-loaded pattern of new business that is consistent with the outlook set at the start of the year, and said not all carriers are currently deploying [2]. Management also said organic growth was about 4% excluding DISH churn and that fourth-quarter new business should be consistent with the third quarter [2]. The company did not disclose the quarterly pattern assumed at the start of the year, so this explanation cannot be checked independently. A simple average of 0.6%, 0.7% and 0.0% for the first three quarters means the reiterated full-year figure of about 0.5% requires roughly 0.7% in the fourth quarter, which is hard to reconcile with that statement, and the company did not explain the gap [1][2].

Slower leasing directly reduces incremental profit. U.S. & Canada segment gross margin was $1.051 billion in the third quarter, down 4.6% [5]. Services revenue was $51.4 million, down 49% from a year earlier; the company cut its full-year services revenue outlook to about $220 million, with about $15 million less EBITDA than in its prior outlook, because one customer's projects were delayed [1][2]. Churn did not increase, which indicates no new cancellations outside DISH. The current evidence shows a weaker second-half demand pace, but it does not prove a structural decline in carrier demand.

Africa kept 8.2% organic growth after churn picked up

Africa & APAC churn rose from $4 million in each of the first two quarters to $9 million in the third quarter, yet organic tenant billings growth remained 8.2% [1]. Colocations and amendments of $19 million, higher than in either first-half quarter, plus $8.9 million from new sites supported the result [1][5]. Management said the result was modestly ahead of its expectations [2]. Segment revenue grew 15.4%, including a $36.9 million increase in fuel pass-through revenue; fuel costs also raised expenses, and the segment operating profit margin fell to 60% from 64% a year earlier [1][5]. The company has not disclosed which tenants churned or how large fourth-quarter churn will be.

Conclusion

The quarter shows that US towers, the largest and highest-margin business, did not grow in the third quarter, leaving growth more dependent on CoreSite and Africa. CoreSite's increase came mainly from new rent commencements, and its margin held at 53% [1][5]. Latin America remains affected by Brazil churn; the AT&T Mexico arbitration hearing began in August, the company expects a ruling in 2027, and it continues to reserve about $8 million to $10 million per quarter [2][5].

Profit conversion was weak as a result. Consolidated Adjusted EBITDA rose only 0.9%, and AFFO per share was $2.87, up 3.2% [1]. The company repaid 1.450% notes with new notes carrying 5.300% to 5.750% coupons, so refinancing continues to weigh on AFFO per share [5]. Management called 2026 a trough year with acceleration in 2027, which remains a company expectation [2]. If US colocation and amendment billings return above $30 million in the fourth quarter, the third-quarter slowdown is more likely to prove temporary; if they stay below $25 million, or Africa churn rises further, this conclusion weakens further.

Sources

[1] AMT 8-K filed 2026-10-27 · Q3 2026 earnings press release, 2026-10-27, American Tower 8-K earnings release, https://www.sec.gov/Archives/edgar/data/1053507/000105350726000154/pressreleaseq32026.htm

[2] AMT Q3 2026 earnings call 2026-10-27, 2026-10-27, American Tower third-quarter earnings call, https://www.americantower.com/investor-relations/

[3] AMT 10-K filed 2026-02-24 · business and portfolio, 2026-02-24, American Tower 10-K, https://www.sec.gov/Archives/edgar/data/1053507/000105350726000035/amt-20251231.htm

[4] AMT 10-K filed 2026-02-24 · top tenants by segment, 2026-02-24, American Tower 10-K, https://www.sec.gov/Archives/edgar/data/1053507/000105350726000035/amt-20251231.htm

[5] AMT 10-Q filed 2026-10-27 · Q3 2026 MD&A, 2026-10-27, American Tower 10-Q, https://www.sec.gov/Archives/edgar/data/1053507/000105350726000157/amt-20260930.htm