CCI · Q2 2026 Earnings

Cautious

Crown Castle

Reported July 22, 2026

30-second summary

Crown Castle closed the $8.4B fiber-business sale on May 1, raised FY2026 AFFO/share guidance to $4.53–$4.65 (+$0.15/+$0.16 vs. prior), lifted GAAP EPS guide to $1.70–$2.35 (+$0.22/+$0.23), and posted Q2 revenue of $1.008B (+1.1% vs. consensus $0.997B). Reported Q2 GAAP diluted EPS of $0.22 was weighed by a $205M loss from discontinued operations (fiber disposal); continuing-operations diluted EPS was $0.69, the cleaner comparable. The AFFO/share uplift is real — driven by fiber-sale proceeds funding the $7B debt paydown and the ~$1B buyback (426M shares outstanding at 6/30 vs. 435M at year-end) — and absolute AFFO guidance of $1,950–$2,000M was disclosed alongside the per-share range, allowing coverage math to be recomputed. Site rental revenue -4.1% YoY confirms Sprint/DISH churn remains the dominant top-line drag, though organic contribution accelerated to $38M / 4.2% from Q1's $30M / 3.3%.

Headline numbers

EPS

Q2 FY2026

$0.22

Revenue

Q2 FY2026

$1.01B

-4.9% YoY

+1.1% vs est.

Operating margin

Q2 FY2026

46.6%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$1.01B	$1.06B	-4.9%	$1.01B	-0.2%
EPS	$0.22	$0.67	-67.2%	$0.34	-35.3%
Operating margin	46.6%	47.7%	-110bps	46.0%	+56bps

Guidance

FY2026 full-year EPS and AFFO guidance raised 3-4% on fiber sale proceeds and debt paydown acceleration, while Q2 FY2026 revenue beat consensus but EPS missed due to transaction charges.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	—	$1.008B	+1.1% above estimate	Beat
EPS (GAAP)	Q2 FY2026	—	$0.22	-55.1% below estimate	Missed

New guidance

Metric	Period	Guide	YoY
FFO per share	FY2026	$1,730 to $1,760 million	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY2026	$3,828 to $3,873 million	$3,833 to $3,878 million	+$5M at low end, +$5M at high end	Raised
EPS (GAAP)	FY2026	$1.48 to $2.12	$1.70 to $2.35	+$0.22 at low end, +$0.23 at high end	Raised
AFFO per share	FY2026	$4.38 to $4.49	$4.53 to $4.65	+$0.15 at low end, +$0.16 at high end	Raised
Site rental billings	FY2026	$3,800 to $3,830 million	$3,805 to $3,835 million	+$5M at low end, +$5M at high end	Raised

Reaffirmed unchanged this quarter: Adjusted EBITDA ($2,665 to $2,715 million)

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Site Rental	$0.967B	$1.008B	-4.1%
Services and Other	$0.041B	$0.052B	-21.2%

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Adjusted EBITDA	$675M	$705 million	—
FFO per share	$1.07	—	—
AFFO per share	$1.13	—	—
Total towers	40,000	—	—
Average tenants per tower	2.0	—	—
Remaining contracted tenant receivables	$26.0B	—	—
Weighted average remaining tenant contract term	5 years	—	—
Organic Contribution to Site Rental Billings (as adjusted)	$38M	—	—

Management tone

Customer optimization hangover → AI/spectrum densification thesis → Damage control and reset → Defensive execution → Post-close reset

No transcript was available for this quarter, so tone analysis is drawn from press-release disclosure choices rather than management commentary.

The organic-growth narrative strengthened relative to Q1's read. Trajectory of organic contribution as adjusted for Sprint/DISH: Q4 2025 3.6% → Q1 2026 3.3% → Q2 2026 4.2%, with the FY guide midpoint implying 3.6%. The Q1 3.3% print now looks like the trough that management previewed, and Q2's reacceleration to 4.2% supports rather than undermines the FY organic-growth framing. That said, the reported Services and other line at -21.2% YoY is a second-derivative negative that doesn't show up in the organic-billings metric — the underlying story is stronger on core towers, weaker on services.

Answers to last quarter's watch list

Q2 2026 organic billings growth vs. 3.3% Q1 and 3.5% FY floor. Resolved positively — Q2 organic contribution as adjusted printed $38M / 4.2%, an acceleration from Q1's $30M / 3.3%, with the FY guide implying 3.6%. Status: Resolved positively

June 30, 2026 fiber/small-cell sale close. Resolved — sale closed May 1, 2026, ~two months ahead of the June 30 assumption. Net proceeds $8.4B = $8.5B gross less $124M preliminary purchase price adjustments (subject to post-closing settlement). Status: Resolved positively

First quantified standalone tower-co SG&A run-rate dollar disclosure. Not disclosed as a standalone run-rate, though Q2 SG&A of $97M (vs. $99M year-ago) is visible in the segment tables. This remains the largest gap in the valuation case. Status: Continue monitoring

Dividend coverage trajectory. FY2026 AFFO midpoint $1,975M ($4.59/share) vs. $4.24 annualized dividend on ~430M shares ≈ $1.82B, implying ~92% payout — improved from ~96% at prior guidance but still well above the 75–80% target range. Status: Continue monitoring

Edge-compute commercial milestones. No mention in press-release disclosures. Status: Not resolved (transcript pending)

DISH litigation milestones. No procedural update in the press release. Status: Not resolved

What to watch into next quarter

Q3 organic contribution vs. Q2's $38M / 4.2% print. With Q2 reaccelerating above the FY-implied 3.6%, watch whether the run-rate holds or reverts. A drop back toward the Q1 3.3% level would pressure the FY billings guide.

Services and other line stabilization. -21.2% YoY in Q2 after -2.0% in Q1 needs a sequential explanation. Any accounting-driven reclassification or genuine demand loss materially changes the H2 modeling setup.

Remaining capital-allocation execution. Buyback appears substantially complete (11M treasury shares, ~$1.0B deployed). Debt paydown against the $7B post-close target has progressed materially (long-term debt down $5.6B from year-end); watch whether the remaining runway is deployed to further debt reduction or additional buyback.

First quantified standalone tower-co SG&A run-rate. Now four quarters overdue as a specific disclosure ask. The May 1 close has removed the "still integrated" excuse.

DISH litigation procedural milestones and any equipment-removal accrual. The $3.5B recovery claim's first court-process date sets the realistic timeline for any recovery discounting.

Sources

Crown Castle Q2 2026 Supplemental Information Package (Exhibit 99.2): https://www.sec.gov/Archives/edgar/data/1051470/000105147026000069/q22026supplement.htm
Crown Castle Q1 2026 brief (tapebrief internal reference)
Crown Castle Q4 2025 brief (tapebrief internal reference)
Crown Castle Q3 2025 brief (tapebrief internal reference)

Get the next brief, free.

We publish analyst-grade earnings briefs the same day or morning after every call — headline numbers, segment KPIs, Q&A highlights, and tone analysis. Free during beta.

This is not investment advice.