Data Center Surge and Core Tower Demand Offset DISH Headwinds (AMT Q1 2026 Earnings Call)

By Dr. Graph | Updated on Apr 28, 2026 | earnings

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American Tower's first-quarter performance highlighted the resilience of its diversified digital infrastructure, as robust growth in its CoreSite data centers and steady international tower demand fully absorbed anticipated headwinds from DISH network churn. With an elevated full-year outlook, the results reinforce the structural tailwinds of 5G densification and AI-driven data consumption.

CoreSite Surge Drives 5% Normalized Revenue Growth

American Tower's Q1 2026 results demonstrated strong underlying demand across its tower and data center portfolios, offsetting the anticipated headwind from DISH network churn. Property revenue grew 5% and Adjusted EBITDA rose 4% on a cash, foreign exchange-neutral basis when excluding the DISH impact. The core tower business delivered 4% organic tenant billings growth, excluding DISH, while the CoreSite data center segment surged 17%. These strong fundamentals, alongside favorable foreign exchange and straight-line tailwinds, prompted management to raise the full-year outlook across all key metrics.

Management Raises Full-Year AFFO Outlook

The company increased its 2026 guidance, projecting 3% property revenue growth and 2% AFFO per share growth. Normalizing for the 400-basis-point churn headwind, AFFO per share is expected to grow 5%. CFO Rodney Smith emphasized the longer-term trajectory, stating, "This outlook for 2026 is in line with our longer-term view for AFFO per share growth, which is up in the mid-single digits to better than mid-single digits." To support shareholder returns, the company repurchased $184 million in stock during the quarter.

AI Workloads Accelerate Interconnection Demand

The CoreSite business drove significant outperformance, bolstered by accelerating AI workloads and an inflection in interconnection activity. CEO Steve Vondran highlighted this structural advantage: "CoreSite drives resilient leasing demand while capturing a high-margin interconnection revenue stream." Internationally, operations delivered strong organic tenant billings growth of 11% in Africa and APAC, though Latin America declined 2% due to planned consolidation churn in Brazil.

M&A Discipline and Power Supply Resilience

During the Q&A, analysts questioned the company's M&A appetite amid a shifting competitive landscape. Vondran reaffirmed a disciplined focus on the U.S. and developed markets, noting there is "no sort of strategic imperative to overpay for anything." Regarding data center power constraints, management confirmed they successfully increased held-for-development capacity by 200 megawatts, positioning American Tower to capture sustained AI and cloud demand without significant supply chain bottlenecks.

Frequently Asked Questions

How did the DISH network churn impact American Tower's Q1 results?

CFO Rodney Smith noted that the DISH churn represents an approximately 400-basis-point headwind to AFFO growth in 2026, though the company offset this through organic growth and raised full-year guidance.

What is management's strategy for data center expansion given power constraints?

CEO Steve Vondran stated the company has altered its building designs and CFO Rodney Smith added they secured an additional 200 megawatts of power for future development to navigate supply chain and power availability challenges.

Is American Tower planning any major M&A transactions?

CEO Steve Vondran emphasized disciplined capital allocation, stating they evaluate all opportunities but have no strategic imperative to overpay and will maintain focus on developed markets.