Strong demand for data centers and telecom firms’ high network coverage spending helped American Tower surpass Wall Street’s third-quarter revenue projections on Tuesday. The company continues to benefit from the global surge in mobile data usage, cloud computing, and the transition toward 5G networks.
To keep up with the rising demand for internet services, telecom companies are investing heavily in 5G rollout and mobile network infrastructure. This investment trend has provided a steady stream of growth for tower operators like American Tower, which play a crucial role in enabling digital connectivity across regions.
“Leasing activity across our U.S. and international towers continues robustly as carriers make investments in network coverage and capacity,” CEO Steven Vondran stated, highlighting the continued momentum in both developed and emerging markets.
Read: Trump Threatens to Strip Rosie O’Donnell’s Citizenship Amid Mounting Criticism
Expanding Infrastructure and Strong Industry Partnerships
The company leases space on its communication sites to radio and television broadcasters and wireless service providers. It also owns, operates, and develops broadcast and wireless communications infrastructure, serving as a backbone for modern connectivity. In addition to towers, American Tower is expanding its portfolio through investments in edge data centers and small cell solutions, aligning with future network technologies.
Telecom behemoths AT&T, Verizon, and T-Mobile are among American Tower’s largest clients; collectively, they accounted for a significant share of its property segment income in the United States and Canada last year. These partnerships continue to grow as telecom operators enhance network capacity to support increasing data traffic and improve user experience.
Customers migrating from competitors helped AT&T and T-Mobile surpass Wall Street’s forecasts for third-quarter wireless subscriber increases, further driving leasing demand for tower infrastructure across the U.S. and Latin America.
Strong Financial Performance and Upgraded Outlook
In the third quarter, revenue from American Tower’s property segment—which includes its site leasing business—rose by around 6% to $2.62 billion, driven by higher renewals, new tenant additions, and contractual rent escalations.
According to figures provided by LSEG, the wireless infrastructure provider reported total revenue of $2.72 billion in the given quarter, exceeding analyst estimates of $2.65 billion. This marked another strong performance despite economic headwinds and foreign currency fluctuations.
American Tower also raised its full-year 2025 revenue guidance. The company’s previous estimate of $10.14 billion to $10.29 billion has been revised upward to $10.21 billion to $10.29 billion, reflecting its confidence in sustained leasing demand and long-term market growth. Analysts view this upgrade as a positive indicator of the company’s stable recurring income and robust business fundamentals.
As data consumption continues to surge worldwide, American Tower is well-positioned to benefit from the global shift toward digital infrastructure, 5G networks, and edge computing technologies, thereby reinforcing its leadership in the telecom tower and data center sectors.
