Crown Castle (CCI) AI Stock Analysis

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Crown Castle

(NYSE:CCI)

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Neutral 45 (OpenAI - 4o)

Rating:45Neutral

Price Target:

$89.00

▲(3.36% Upside)

Crown Castle's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue, negative profitability, and high leverage. Technical analysis and valuation also present challenges, with bearish trends and a negative P/E ratio. While the earnings call provided some positive outlooks, significant operational challenges and the impact of Sprint cancellations weigh heavily on the score.

Positive Factors

Strong Organic Growth in Tower Business

The 5.2% organic growth in the tower business indicates robust demand for Crown Castle's infrastructure, supporting long-term revenue stability and expansion potential.

Promising Long-Term Industry Trends

Sustained growth in mobile data demand highlights a favorable industry trend, ensuring continued utilization of Crown Castle's assets and supporting future growth.

Leadership Change

The appointment of a new CEO, Christian Hillabrant, may bring fresh strategic direction and operational improvements, potentially enhancing long-term business performance.

Negative Factors

Declining Revenue

A 5.1% decline in site rental revenues indicates challenges in maintaining revenue levels, which could impact long-term financial health if not addressed.

High Leverage

High leverage and negative equity suggest potential solvency risks, limiting financial flexibility and increasing vulnerability to economic downturns.

Impact of Sprint Cancellations

Sprint cancellations significantly impacted financial metrics, highlighting reliance on key clients and the need to diversify revenue sources to mitigate such risks.

Crown Castle (CCI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$37.50B

Dividend Yield5.44%

Average Volume (3M)2.49M

Price to Earnings (P/E)―

Beta (1Y)>-0.01

Revenue Growth-26.56%

EPS Growth-369.24%

CountryUS

Employees3,900

SectorReal Estate

Sector Strength53

IndustryREIT - Specialty

Share Statistics

EPS (TTM)0.67

Shares Outstanding435,479,000

10 Day Avg. Volume3,038,426

30 Day Avg. Volume2,487,576

Financial Highlights & Ratios

PEG Ratio0.03

Price to Book (P/B)-296.16

Price to Sales (P/S)6.00

P/FCF Ratio22.89

Enterprise Value/Market Cap1.70

Enterprise Value/Revenue13.16

Enterprise Value/Gross Profit17.94

Enterprise Value/Ebitda-31.46

Forecast

1Y Price Target

$100.23

Price Target Upside16.40% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering14

EPS Forecast (FY)2.8

Revenue Forecast (FY)$4.22B

Crown Castle Business Overview & Revenue Model

Company DescriptionCrown Castle owns, operates and leases more than 40,000 cell towers and approximately 80,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology and wireless service - bringing information, ideas and innovations to the people and businesses that need them. For more information on Crown Castle, please visit www.crowncastle.com.

How the Company Makes MoneyCrown Castle generates revenue primarily through long-term leases with wireless carriers and other service providers who utilize its tower and fiber infrastructure. The company earns money from leasing space on its towers, which allows clients to install antennas and related equipment for transmitting wireless signals. Additionally, Crown Castle provides fiber services, which include connectivity solutions for businesses and municipalities. The company benefits from recurring revenue streams due to the multiyear contracts it typically signs with its customers. Significant partnerships with major telecom operators and the increasing demand for 5G technology also contribute to its revenue growth, as more carriers seek to enhance their networks with Crown Castle's infrastructure.

Crown Castle Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Breaks down revenue across different business segments, revealing where the company is generating the most sales and potential areas for growth or concern.

Chart InsightsCrown Castle's Towers segment has experienced a gradual revenue decline since 2023, likely impacted by Sprint cancellations. However, the latest earnings call reveals optimism with a 4.7% organic growth in the tower business, excluding Sprint's impact, and increased leasing activity. The Fiber segment shows volatility but remains stable. The company is enhancing operational efficiencies and has raised its 2025 outlook, indicating strategic resilience. Despite challenges, Crown Castle is focused on capital allocation and dividend growth, leveraging free cash flow for share repurchases while maintaining financial flexibility.

Data provided by:

The Fly

Crown Castle Earnings Call Summary

Earnings Call Date:Feb 04, 2026

(Q4-2025)

Next Earnings Date:Apr 22, 2026

Earnings Call Sentiment Neutral

The call balanced strong operational execution and disciplined capital allocation against significant near-term headwinds. Positives include exceeding full-year 2025 guidance, a pending $8.5 billion small cell and fiber sale (with DOJ clearance of HSR), a clear plan to repay debt (~$7B) and repurchase shares (~$1B), targeted $65 million of annualized cost savings, maintained dividend policy, and projected interest savings that support AFFO post-close. Offsetting those strengths are a major adverse development with DISH — contract default, litigation, and removal of DISH revenue (material churn of roughly $120M–$220M cited) — which drove a downward revision to AFFO guidance and creates legal and timing uncertainty. The company believes 2026 is a trough in organic growth and expects improvement thereafter, but near-term execution and recovery depend on the timing of the sale close and legal outcomes with DISH.

Q4-2025 Updates

Positive Updates

Exceeded Full-Year 2025 Guidance

Full-year 2025 results exceeded the midpoint across all key metrics. Organic growth was 4.9% (excluding Sprint churn). Site rental revenues finished near the high end of guidance and adjusted EBITDA and FFO exceeded the high end due to revenue outperformance, higher services contribution, efficiency initiatives and lower interest expense.

Pending Small Cell and Fiber Sale (Purchase Price $8.5B)

Sale of the small cell and fiber businesses remains on track for 2026 with the $8.5 billion purchase price unchanged. The Department of Justice closed its HSR review and only a handful of state and federal approvals remain. Management assumed a June 30 close date for planning purposes.

Capital Allocation Plan — Deleveraging and Buybacks

Management expects to allocate approximately $7 billion of sale proceeds to repay debt and approximately $1 billion to share repurchases. Target leverage range remains 6.0x–6.5x and the company expects to maintain its investment-grade rating post-close.

Dividend Policy and CapEx Guidance

Dividend per share will be maintained at $4.25 annualized until reaching a target payout ratio of 75%–80% of AFFO (excluding prepaid rent amortization). Planned annual net capital expenditures of $150 million–$250 million to support tower augmentation, land purchases under towers and technology investments.

Run-Rate Cost Reductions / Restructuring

Company announced a restructuring that targets approximately $65 million of annualized run-rate operating cost savings (expected $55 million impact in 2026 and an incremental $10 million in 2027). Actions include a ~20% reduction in tower and corporate workforce, ending at ~1,250 full-time employees, with ~60% of consolidated workforce moving with the sale.

Interest Expense Savings & Improved AFFO Drivers

Management expects meaningful interest expense reductions from planned debt repayments. Sunit cited a ~ $120 million decrease in interest expense tied to repaying about $7 billion of ~4% debt, which is a material driver of improved AFFO and cash flow post-close.

2026 Organic Growth Outlook and Contracted Visibility

2026 organic growth at the midpoint is guided to ~3.3% ($130 million) excluding Sprint cancellations and DISH terminations, or 3.5% if DISH is excluded from prior-year billings. Management stated 3.5% should mark a trough and expects improvement thereafter; ~80% of organic growth is contracted, providing visibility.

Balance Sheet Liquidity and Revised Post-Close AFFO

The company ended the quarter with significant liquidity and expects to maintain investment-grade metrics post-sale. Revised guidance for AFFO for the twelve months following close is $2.1 billion at the midpoint; management highlighted this includes about $120 million of interest savings, $50 million of underlying business growth and $10 million of cost savings versus full-year 2026.

Negative Updates

DISH Contract Default and Material Revenue Loss

DISH defaulted on payment obligations; Crown Castle terminated the agreement and is seeking to recover in excess of $3.5 billion in remaining payments. Management excluded DISH from 2026 guidance, which they said results in approximately $220 million of churn in full-year 2026; elsewhere the transcript cites ~$120 million of DISH-related site rental impact. DISH removal materially reduced expected contributions — the original near-term DISH contribution was cited around $280 million in earlier planning.

Reduction to AFFO Guidance Due to DISH

AFFO guidance for the twelve months following the close was decreased by $240 million to a $2.1 billion midpoint, reflecting the removal of DISH-related contributions (previous midpoint ~ $2.34 billion included DISH). This is a direct financial impact from DISH's contractual default.

Site Rental Billings Pressure and Other Headwinds

Management identified a net negative impact to site rental billings including a $20 million impact from Sprint cancellations, a cited $120 million DISH churn on site rental billings, and a $90 million decrease in noncash straight-line revenue and amortization of prepaid rent. Slide commentary noted an expected $110 million decrease to site rental billings before offset items.

Workforce Reductions and Transition Risk

Approximately 20% workforce reduction and reorganization to a standalone U.S. tower business were announced. Majority of staffing reductions occur in Q1, with non-labor reductions phased after the anticipated sale close; this poses near-term execution and integration risk during a major corporate transition.

Legal and Timing Uncertainty

Crown Castle has initiated litigation and other enforcement actions versus DISH; management acknowledged legal recovery could take a year or longer and that details/timing are uncertain. Additionally, the small cell and fiber sale still requires a handful of state/federal approvals, making the assumed June 30 close date subject to risk.

Near-Term Growth Trough and Customer Behavior Uncertainty

Management characterized 2026 as a trough year (midpoint organic growth ~3.5%), noting carriers are focused on cost reductions and strategy refinements. While management expects improvement over time, near-term leasing activity and amendment/densification cadence are subject to customer budgeting and deployment choices.

Potential One-Time and Noncash Revenue Reductions

Noncash items (straight-line revenues and prepaid rent amortization) are expected to decrease by roughly $90 million, which mechanically reduces recognized revenue and contributes to pressure on site rental results in 2026.

Company Guidance

Crown Castle’s 2026 guidance targets a midpoint of $3.9B site rental revenues, $2.7B adjusted EBITDA and $1.9B AFFO, and reflects material adjustments: exclusion of DISH (causing ~$220M of 2026 churn and Crown pursuing recovery in excess of $3.5B), an assumed June 30, 2026 close of the small‑cell & fiber sale, and $65M of annualized run‑rate cost reductions (≈$55M in 2026, $10M in 2027) tied to a ~20% workforce reduction to ~1,250 FTEs; organic growth at the midpoint is guided to 3.3% (≈$130M) excluding Sprint and DISH (3.5% if prior‑year DISH is excluded) versus a comparable 3.8% in 2025, management expects a $110M decrease in site rental billings (including ~$120M DISH churn, $20M Sprint cancellations and a $90M decline in straight‑line/prepaid rent amortization) to be more than offset by $25M expense reductions (driven by $50M run‑rate savings partially offset by base increases), $5M higher service contribution, ~$120M lower interest expense from repaying ~ $7B of ~4% debt, and $25M lower amortization—yielding an expected ~$15M increase in 2026 AFFO versus 2025; post‑sale priorities: allocate ~ $1B to buybacks and ~ $7B to debt repayment, maintain a $4.25 annualized dividend until reaching a 75–80% AFFO payout ratio (ex‑prepaid rent amortization), target leverage of 6.0x–6.5x, and run $150M–$250M of annual net capex.

Crown Castle Financial Statement Overview

Summary

Crown Castle is facing significant financial difficulties, with declining revenue, negative profitability, and high leverage. The income statement reveals substantial losses, while the balance sheet shows negative equity, indicating potential solvency risks. Although there is some growth in free cash flow, the overall financial health is concerning, requiring strategic adjustments to stabilize the company's financial position.

Income Statement

Negative

Crown Castle's income statement shows significant challenges. The TTM data reveals a negative revenue growth rate of -10.7%, indicating a decline in sales. Additionally, the company has negative net profit and EBIT margins, reflecting substantial losses. Historical data shows a consistent decline in revenue growth and profitability, with the latest year showing a sharp downturn.

Balance Sheet

Very Negative

The balance sheet indicates financial instability, with a negative stockholders' equity in the TTM period, leading to an undefined debt-to-equity ratio. This suggests high leverage and potential solvency issues. The return on equity is positive but misleading due to negative equity, and the equity ratio is not calculable. The company's financial position appears precarious.

Cash Flow

Neutral

Cash flow analysis shows some positive aspects, with a free cash flow growth rate of 11.2% in the TTM period. However, the operating cash flow to net income ratio is below 1, indicating cash flow challenges relative to earnings. Despite free cash flow growth, the overall cash flow position is strained by negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.84B	6.57B	6.98B	6.99B	6.34B	5.84B
Gross Profit	3.55B	4.72B	5.00B	4.92B	4.35B	3.87B
EBITDA	-2.03B	-1.24B	4.10B	4.07B	3.46B	3.35B
Net Income	-4.62B	-3.90B	1.50B	1.68B	1.10B	1.06B
Balance Sheet
Total Assets	31.50B	32.74B	38.53B	38.92B	39.04B	38.77B
Cash, Cash Equivalents and Short-Term Investments	233.00M	119.00M	105.00M	156.00M	292.00M	232.00M
Total Debt	29.84B	29.61B	28.81B	27.96B	27.01B	25.42B
Total Liabilities	32.99B	32.87B	32.15B	31.47B	30.78B	29.31B
Stockholders Equity	-1.49B	-133.00M	6.38B	7.45B	8.26B	9.46B
Cash Flow
Free Cash Flow	2.67B	1.72B	1.70B	1.57B	1.50B	1.43B
Operating Cash Flow	3.06B	2.94B	3.13B	2.88B	2.73B	3.06B
Investing Cash Flow	-1.08B	-1.22B	-1.52B	-1.35B	-1.33B	-1.74B
Financing Cash Flow	-2.10B	-1.71B	-1.65B	-1.67B	-1.31B	-1.27B

Crown Castle Technical Analysis

Technical Analysis Sentiment

Negative

Last Price86.11

Price Trends

50DMA

87.63

Negative

100DMA

90.37

Negative

200DMA

94.93

Negative

Market Momentum

MACD

-0.64

Positive

RSI

47.32

Neutral

STOCH

25.35

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCI, the sentiment is Negative. The current price of 86.11 is below the 20-day moving average (MA) of 86.50, below the 50-day MA of 87.63, and below the 200-day MA of 94.93, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 47.32 is Neutral, neither overbought nor oversold. The STOCH value of 25.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCI.

Crown Castle Risk Analysis

Crown Castle disclosed 31 risk factors in its most recent earnings report. Crown Castle reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Crown Castle Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQIX	73 Outperform	$78.76B	73.41	7.72%	2.47%	5.36%	-1.68%
AMT	69 Neutral	$82.65B	27.61	77.38%	3.76%	-5.33%	163.89%
SBAC	67 Neutral	$19.70B	22.62	―	2.31%	4.82%	25.24%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UNIT	59 Neutral	$1.90B	1.57	―	―	38.93%	952.55%
IRM	55 Neutral	$26.62B	165.72	―	3.98%	10.88%	51.13%
CCI	45 Neutral	$37.50B	―	-276.36%	5.44%	-26.56%	-369.24%

* Real Estate Sector Average

Performance Comparison

CCI

Crown Castle

86.11

0.29

0.34%

AMT

American Tower

176.55

-6.77

-3.69%

EQIX

Equinix

802.13

-115.17

-12.56%

IRM

Iron Mountain

90.07

-12.43

-12.13%

SBAC

SBA Communications

184.87

-15.98

-7.96%

UNIT

Uniti Group

7.96

-1.11

-12.24%

Crown Castle Corporate Events

Dividends

Crown Castle Declares Quarterly Dividend Announcement

Neutral

Nov 5, 2025

On November 5, 2025, Crown Castle Inc. announced that its Board of Directors declared a quarterly dividend of $1.0625 per share of common stock. This dividend will be payable on December 31, 2025, to stockholders of record as of December 15, 2025.

The most recent analyst rating on (CCI) stock is a Hold with a $93.00 price target. To see the full list of analyst forecasts on Crown Castle stock, see the CCI Stock Forecast page.

Business Operations and StrategyFinancial Disclosures

Crown Castle Reports Q3 Revenue Decline, Updates Outlook

Negative

Oct 22, 2025

On October 22, 2025, Crown Castle reported its third-quarter results, showing a decline in site rental revenues by 5.1% compared to the previous year, primarily due to Sprint cancellations and decreases in amortization of prepaid rent and straight-lined revenues. Despite these challenges, the company increased its full-year 2025 outlook, driven by strategic investments in operational efficiencies and asset information systems, aiming to enhance long-term shareholder value as a standalone tower company.

The most recent analyst rating on (CCI) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Crown Castle stock, see the CCI Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 09, 2025