Key financial results
- Organic growth: Third quarter organic growth, excluding Sprint cancellations and DISH terminations, was 3.5% or $35 million, and increases to 3.8% if DISH revenues are excluded from prior year segmental billings.
Third quarter organic growth, excluding the impact of sprint cancellations and dish terminations was 3.5% or $35 million.
- Site rental headwinds: Site rental revenues were reduced by $5 million of Sprint cancellations, $61 million of DISH terminations, and a $17 million decrease in noncash straight-line revenues and amortization of prepaid rent.
This growth was more than offset at site rental revenues by $5 million of Sprint cancellations, $61 million of dish terminations and a $17 million decrease
- Services margin: Third quarter services margin was $15 million, which management expects to increase in the fourth quarter.
Third quarter services margin was $15 million, which we expect to increase in the fourth quarter.
- Balance sheet: The company ended the quarter with 97% fixed rate debt, a weighted average maturity of 7 years, and leverage at 6.5x net debt to last quarter annualized adjusted EBITDA.
We ended the quarter with 97% fixed rate debt with a weighted average maturity of 7 years and leverage at 6.5x
Business segment results
- Organic growth outlook: Full year 2026 organic growth, excluding the impact of Sprint cancellations and DISH terminations, remains unchanged at $135 million or 3.4% at the midpoint.
Full year 2026 organic growth, excluding the impact of Sprint cancellations and dish terminations remains unchanged at $135 million or 3.4% of the point.
- Core leasing: The full year 2026 organic growth outlook includes $60 million to $70 million in core leasing activity, with the company expecting to finish the year towards the bottom end of the range.
- DISH deployment: Management noted that DISH installed 12,000-plus sites with the ability to go up to 20,000 over time before hitting the stop button.
they had 12,000-plus installed sites with the ability to go up to 20,000 over time as they develop their network.
- Edge compute: Crown Castle has deployed over 100 edge sites with several concurrent trials underway as it evaluates scaling its edge compute solutions.
Crown Castle now has 100-plus edge sites deployed in several concurrent trials underway.
Capital allocation
- Discretionary CapEx: Discretionary CapEx outlook is increasing by $40 million to $240 million to reflect a higher volume of ground lease buyouts expected to be completed in 2026.
Lastly, we're increasing our outlook for discretionary CapEx by $40 million to $240 million to reflect the higher volume of ground lease buyouts we expect to complete in 2026.
- Net discretionary CapEx: Discretionary CapEx, net of anticipated prepaid rent additions of $40 million at the midpoint, is expected to be $200 million at the midpoint.
Discrinary CapEx, net of anticipated prepaid rent additions of $40 million at the midpoint is expected to be $200 million at the midpoint.
- Commercial agreement: Crown Castle paid $275 million to acquire a residual economic interest in a subset of towers, extend lease terms, and limit long-term churn.
Industry trends and dynamics
- Data demand: Mobile data demand continues to grow at a healthy pace, driven by AI-enabled applications, physical AI, and data-only wireless devices.
- Spectrum investments: Carriers have committed significant capital to spectrum, including AT&T acquiring 3.45 GHz and 600 MHz, Verizon acquiring AWS-3 licenses, and SpaceX acquiring AWS-4, H Block, and 800 MHz spectrum.
Over the past year, carriers and other wireless offers have committed significant capital to acquire spectrum assets, including AT&T's acquisition of 3.45 gigahertz and 600 megahertz spectrum.
- SpaceX ambitions: SpaceX stated its aim to become the first network operator to deploy both satellite and terrestrial spectrum, which could provide an additional uplift for towers.
Notably, as part of its 800 megahertz spectrum acquisition, SpaceX said it aims to "become the first network operator to deploy both satellite and terrestrial spectrum."
- FCC auctions: The FCC expects to auction approximately 800 megahertz of spectrum, including 160 megahertz of upper C-band spectrum expected by July 2027.
Competitive landscape
- Pure-play strategy: Crown Castle views its pure-play U.S. tower strategy, investment-grade balance sheet, and capital allocation framework as competitive advantages for maximizing long-term shareholder value.
We believe our pure-play U.S. tower strategy, investment-grade balance sheet and capital allocation framework positions Crown Castle to maximize long-term shareholder value.
- Portfolio scale: Management noted that the company has approximately 40,000 sites, with the majority located in top 100 markets.
I think what we would offer to them is the fact that we've got approximately 40,000 sites.
Macroeconomic environment
- Macro factors: The company did not discuss broad macroeconomic indicators such as inflation, interest rate cycles, or GDP growth on the call, focusing instead on wireless sector-specific trends.
Growth opportunities and strategies
- Ground lease buyouts: Crown Castle expects to purchase more than 400 ground leases in 2026, more than double the number completed in 2025.
In 2026, we expect to purchase more than 400 ground leases more than double the number completed in 2025.
- Transformation program: The enterprise-wide transformation program includes modernizing systems, optimizing facilities footprint, reducing corporate nonlabor goals, and exiting the fiber and small cell transition services agreement.
Our transformation program spans the entire business and includes initiatives such as modernizing our systems, optimizing our facilities footprint and reducing corporate nonlabor goals.
- Edge infrastructure: The company identified approximately 5,000 existing structures or shelters at cell sites that can potentially provide move-in ready locations for edge data centers.
As we've gone through this process, we've identified -- we have something like 5,000 existing structures or shelters that are already existing, that are out of our sights today
Financial guidance and outlook
- Guidance raise: Crown Castle increased its full year 2026 outlook by $20 million for site rental revenues, $25 million for adjusted EBITDA, and $5 million for AFFO.
We are increasing our full year 2026 outlook by $20 million for site rental revenues, $25 million for adjusted EBITDA and $5 million for AFFO
- Guidance drivers: The guidance raise reflects a $20 million increase in straight-line revenues from contractual term extensions and a $5 million decrease in site rental cost of operations.
- Low point for growth: Management continues to expect 2026 to mark the low point for organic growth.
We continue to expect 2026 to mark the low point for organic growth.
- AFFO target: The company remains on track to deliver $2.1 billion of AFFO at the midpoint across the second half of 2026 and first half of 2027.
We also remain on track to deliver $2.1 billion of AFFO at the midpoint across the second half of 2026 and first half of 2027.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Site rental revenues organic growth | 3.5% | Not stated |
| Services margin | $15 million | Not stated |
| Discretionary CapEx | $240 million | Not stated |
| Net debt to last quarter annualized adjusted EBITDA | 6.5x | Not stated |
How management sounded
Balanced (+30 on our -100 to +100 scale). Management expressed confidence while raising full-year guidance and highlighting execution on cost savings and ground lease buyouts. Management sounded more upbeat than on 16% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Progress on edge data center trials and potential scalability.
- Developments regarding spectrum deployments by carriers and new entrants.
- Execution of ground lease buyouts and cost-saving transformation initiatives.
Earlier calls
- Q2 2026 (Jul 22, 2026), tone Balanced: Crown Castle reported solid second quarter results and increased its full year 2026 AFFO outlook following the successful completion of the small cell and fiber business sale.
