AMT · Q2 FY2026
AMERICAN TOWER CORP /MA/ Q2 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $2.738B | $2.63B (yr ago) | Beat |
| EPS | $1.84 | $0.78 (yr ago) | Beat |
| Free Cash Flow | $0.951B | $0.98B (yr ago) | Miss |
| Gross Margin | Not meaningful for this financial company | Not meaningful (yr ago) | Miss |
| Operating Margin | 45.3% pre-tax margin | 45.6% pre-tax margin (yr ago) | Miss |
What changed
Revenue increased 4.1% from Q2 FY2025, while EPS rose 135.9% to $1.84. The stronger accounting earnings did not translate fully into cash: free cash flow slipped 2.9% to $0.951B, and pre-tax margin contracted 0.3 percentage points to 45.3%.
Impact on the investment thesis
We initiate fair value at $173.60 per share, effectively unchanged from the $172.61 market price. The quarter supports stable operations but does not justify a higher valuation because cash generation and pre-tax margin failed to match the improvement in EPS.