International and Data Center Segments Propel American Tower’s Q3 Results

American Tower Corporation’s latest earnings highlight a compelling narrative of steady global growth, powered by surging demand in international markets and record-breaking leasing activity in its data center business. In the third quarter of 2025, total revenue increased 7.7% to $2.72 billion, with international operations and data centers acting as the primary catalysts for expansion.

Segment Growth Highlights International Momentum

The company’s revenue growth was fueled by particularly strong performances in Africa & APAC (up 22.5%) and Europe (up 14.5%), with international operations collectively growing by 12.3%. The Data Centers segment saw revenue rise by 14.1% as hybrid-cloud and AI workloads spurred new records for signed leasing.

This surge outside the U.S. highlights the shifting composition of growth at American Tower, with overseas and data center assets increasingly underpinning future prospects as 5G rollouts and global digitization accelerate.

Double-Digit Growth in Key Profit Metrics Signals Financial Strength

American Tower’s focus on organic growth, margin expansion, and capital discipline paid off with Adjusted Funds From Operations (AFFO) per share, as adjusted, rising 10.3% to $2.78 for the quarter. Adjusted EBITDA reached $1.82 billion with a healthy margin of 66.8%. Property gross margins climbed 6.3% to $1.96 billion, underscoring strong operational efficiency even as capital investments continued to grow.

Net income and other profit figures saw an unusually high year-over-year spike, largely due to one-time foreign currency losses and discontinued India operations that impacted prior year results.

Margin Improvement and Capital Allocation Support Durable Growth

The company maintained robust capital allocation with $476 million in Q3 capital expenditures and a net leverage ratio of 4.9x. Liquidity stood at $10.7 billion, providing significant flexibility to fund both discretionary expansion and balance sheet strength. Importantly, the company has consistently increased its quarterly dividend, now up nearly 5% year-over-year, a signal of management’s confidence in recurring cash flows.

Outlook Raised on Continued International and Data Center Momentum

Reflecting sustained demand, management raised the midpoints for full-year 2025 guidance on several metrics. The outlook for property revenue now stands at $10.25 billion (3.2% growth), while AFFO per share is expected in the $10.60–$10.72 range. International tenant billings are projected to rise above 7%, and Data Centers segment revenue is expected to post a 13% increase. Discretionary capital expenditures for the year are budgeted at $865–$895 million, with redevelopment and data center investments continuing to play a prominent role.

Key Takeaways: Resilient Global Platform Poised for Further Expansion

American Tower’s Q3 results underscore the resilience and breadth of its global infrastructure footprint. The ongoing expansion in international and data center segments provides a growth engine insulated from any near-term softness in U.S. macro conditions. With ample liquidity and improving profit metrics, the company is well-positioned to capture the next phase of digital and wireless network expansion worldwide.

For investors and market watchers, the message is clear: as global data usage grows and AI/cloud migration accelerates, American Tower’s blend of recurring tenant revenue, disciplined capital allocation, and margin stability offers both durable cash flow and compelling upside for 2026 and beyond.

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