Shares of American Tower Corporation (NYSE:AMT) rose 1.01% in premarket trading on Tuesday after the company posted third-quarter 2025 results that topped analyst expectations, fueled by continued strength in its data center operations and steady growth in its tower portfolio.
Revenue climbed 7.7% year over year to $2.72 billion, exceeding Wall Street estimates of $2.66 billion. Adjusted funds from operations (AFFO) came in at $2.78 per share, reflecting solid expansion from the prior year. Total property revenue grew 5.9% to $2.62 billion, supported by a 5.0% increase in organic tenant billings across its global tower assets.
The data center business was a key growth driver, with revenue surging 14.1% to $267 million. Management pointed to “record retail new leasing” in this segment, boosted by strong hybrid-cloud demand, favorable pricing conditions, and a sharp uptick in AI-related workloads.
“We delivered another strong quarter, resulting in mid-to-high single-digit growth in revenue and Adjusted EBITDA, and double-digit growth in AFFO per Share, as adjusted,” said Steven Vondran, CEO of American Tower. “Our unmatched portfolio of digital infrastructure continues to benefit from rapid growth in global data demand.”
Net income jumped 216.9% to $913 million, though this was largely due to foreign currency losses in the same quarter last year. Adjusted EBITDA rose 7.6% to $1.82 billion, with margins stable at 66.8%.
The company maintained its shareholder-friendly approach, declaring a quarterly dividend of $1.70 per share — a 4.9% year-over-year increase. It also raised its full-year 2025 outlook for property revenue, Adjusted EBITDA, and AFFO per share, supported in part by favorable currency movements.