American Tower set to report Q2 earnings as analysts maintain bullish stance despite stock underperformance
Wall Street expects funds from operations of $2.65 per share for the fiscal second quarter of 2026, marking a modest 1.9 per cent increase from the prior year.
American Tower Corporation, a Boston-based real estate investment trust, is scheduled to release its fiscal second-quarter 2026 earnings before the market opens on Tuesday, 28 July. The company, which owns and operates a portfolio of nearly 149,000 communications sites and a network of U.S. data centre facilities, has a market capitalisation of $79 billion. Investors are closely watching the results as the firm navigates a period where its shares have significantly lagged behind broader market benchmarks.
Analysts anticipate American Tower will report diluted funds from operations (FFO) of $2.65 per share, representing a 1.9 per cent increase from the $2.60 per share reported in the corresponding quarter of the previous year. For the full fiscal year 2026, analysts expect FFO of $10.66 per share, which is a marginal decrease from the $10.76 per share reported in fiscal 2025. However, the longer-term outlook remains positive, with FFO expected to rise 5.2 per cent year over year to $11.21 per share in fiscal 2027.
The company has demonstrated a consistent ability to outperform Wall Street expectations, having surpassed FFO estimates in each of its last four quarterly reports. This trend was evident on 28 April, when American Tower reported first-quarter results that saw shares close up by 1.8 per cent. The firm reported an adjusted FFO of $2.84 per share, exceeding expectations of $2.50 per share, alongside revenue of $2.74 billion, which beat forecasts of $2.65 billion.
Despite this operational track record, American Tower’s stock has underperformed the S&P 500 Index over the past 52 weeks, declining 22.7 per cent while the index gained 20.1 per cent. The shares also trailed the State Street Real Estate Select Sector SPDR ETF (XLRE), which gained 7.5 per cent over the same period. This divergence has created a disconnect between the company’s fundamental performance and its market valuation.
Analyst consensus on American Tower stock remains bullish, with a "Strong Buy" rating overall. Out of 24 analysts covering the stock, 18 advise a "Strong Buy," two suggest a "Moderate Buy," and four give a "Hold." The average analyst price target for American Tower is $214.04, indicating a potential upside of 26.3 per cent from current levels. The company currently expects full-year FFO in the range of $10.90 to $11.07 per share, providing a floor for investor expectations ahead of the upcoming report.
