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Crown Castle (CCI)
NYSE:CCI
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Crown Castle
(NYSE:CCI)
Select Model
Select Model
Rating:55Neutral
Price Target:
$91.00
▲(2.66% Upside)
Action:ReiteratedDate:02/26/26
CCI scores mid-range primarily due to mixed financial quality: strong cash generation is outweighed by declining revenue, earnings volatility, and balance-sheet risk (high debt and negative equity). Technicals are modestly improving but still weak over longer timeframes, while valuation is supported by a high dividend yield and a moderate P/E. Earnings-call guidance provides some support through planned deleveraging and cost/interest savings, but DISH-related headwinds and timing/legal uncertainty limit upside.
Positive Factors
Strong cash generation
Consistent, sizable operating cash flow and improving free cash flow provide durable internal funding for dividends, capex and debt reduction. This cash generation underpins management’s deleveraging and buyback plans and cushions the business through revenue volatility.
Scale of critical infrastructure
A very large portfolio of towers and fiber creates a structural competitive advantage: high fixed-cost scale, strong customer lock-in, and essential status for carriers’ 5G and broadband rollouts. Scale supports pricing power and long-term lease demand.
High contracted revenue visibility
With the majority of growth stemming from contracted arrangements, Crown Castle benefits from predictable, recurring cash flows that reduce revenue volatility. Contracted visibility improves AFFO forecasting and supports planned capital allocation and debt paydown.
Negative Factors
Very high leverage and negative equity
Elevated absolute debt and negative equity materially weaken financial flexibility, increase refinancing and covenant risk, and constrain strategic options. High leverage amplifies sensitivity to interest rates and slows the pace at which cash generation can be redeployed to growth.
Sharp revenue decline and earnings volatility
A multi-year drop in top-line and swings in profitability indicate weakening demand or one-off adjustments that impair long-term margin visibility. Persistent revenue contraction undermines operating leverage, makes sustaining margins harder, and raises execution risk for growth plans.
DISH default and legal/timing uncertainty
A major customer default creates contested receivables and material revenue churn. Litigation and uncertain recovery timing add cash-flow and forecasting risk, may delay deleveraging plans, and introduce downside if recoveries fall short or the dispute persists for many quarters.
Crown Castle (CCI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.65B
Dividend Yield5.44%
Average Volume (3M)3.61M
Price to Earnings (P/E)19.0
Beta (1Y)-0.04
Revenue Growth-26.56%
EPS Growth-369.24%
CountryUS
Employees3,900
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.67
Shares Outstanding436,070,430
10 Day Avg. Volume3,272,739
30 Day Avg. Volume3,611,847
Financial Highlights & Ratios
PEG Ratio-0.78
Price to Book (P/B)-23.64
Price to Sales (P/S)9.06
P/FCF Ratio13.45
Enterprise Value/Market Cap1.73
Enterprise Value/Revenue15.65
Enterprise Value/Gross Profit23.69
Enterprise Value/Ebitda24.13
Forecast
1Y Price Target
$97.77Price Target Upside10.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)2.1
Revenue Forecast (FY)$4.07B
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
Breaks down revenue across different business segments, revealing where the company is generating the most sales and potential areas for growth or concern.
Breaks down revenue across different business segments, revealing where the company is generating the most sales and potential areas for growth or concern.
Data provided by:
The Fly
The FlyCrown Castle Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
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
Overall fundamentals are mixed. Cash flow is a standout (strong, steady operating cash flow and improving free cash flow), but this is offset by a sharp multi-year revenue decline, volatile profitability (including a deep 2024 loss), and a weakened capital structure with very high debt and negative equity.Income Statement
Revenue has contracted sharply, falling from $7.0B (2022–2023) to $6.6B (2024) and then to $4.3B (2025), with 2025 down ~11.9%. Profitability has been volatile: 2024 swung to a deep loss (net margin about -59%), followed by a return to modest profitability in 2025 (net margin ~10%). The core margin profile remains strong at the gross and operating level in profitable years, but the recent earnings instability and top-line decline cap the score.52
Neutral
Balance Sheet
Leverage is very high with total debt consistently around $27–$30B. The balance sheet has deteriorated materially as equity moved from positive levels in 2020–2023 to negative in 2024 and further negative in 2025, which weakens financial flexibility and makes leverage metrics less meaningful. While asset size remains large, the combination of heavy debt and negative equity is a key risk factor.28
Negative
Cash Flow
Cash generation is a clear strength: operating cash flow has stayed robust and relatively steady (~$2.7B–$3.1B annually), and free cash flow is strong, improving to ~$2.9B in 2025 with positive growth. Free cash flow has generally tracked earnings reasonably well and remained solid even through the 2024 earnings downturn, supporting resilience. The main offset is that coverage versus accounting earnings/volatility isn’t consistently strong across years, but overall cash conversion and magnitude are favorable.72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.26B | 6.57B | 6.98B | 6.99B | 6.34B |
| Gross Profit | 2.82B | 4.72B | 5.00B | 4.92B | 4.35B |
| EBITDA | 2.77B | -1.24B | 4.10B | 4.07B | 3.46B |
| Net Income | 444.00M | -3.90B | 1.50B | 1.68B | 1.10B |
Balance Sheet | |||||
| Total Assets | 31.52B | 32.74B | 38.53B | 38.92B | 39.04B |
| Cash, Cash Equivalents and Short-Term Investments | 269.00M | 119.00M | 105.00M | 156.00M | 292.00M |
| Total Debt | 29.57B | 29.61B | 28.81B | 27.96B | 27.01B |
| Total Liabilities | 33.15B | 32.87B | 32.15B | 31.47B | 30.78B |
| Stockholders Equity | -1.64B | -133.00M | 6.38B | 7.45B | 8.26B |
Cash Flow | |||||
| Free Cash Flow | 2.88B | 1.72B | 1.70B | 1.57B | 1.50B |
| Operating Cash Flow | 3.06B | 2.94B | 3.13B | 2.88B | 2.73B |
| Investing Cash Flow | -1.16B | -1.22B | -1.52B | -1.35B | -1.33B |
| Financing Cash Flow | -1.89B | -1.71B | -1.65B | -1.67B | -1.31B |
Crown Castle Technical Analysis
Positive
88.64
Price Trends
87.03
Positive
89.45
Negative
94.00
Negative
Market Momentum
0.44
Negative
54.03
Neutral
61.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCI, the sentiment is Positive. The current price of 88.64 is above the 20-day moving average (MA) of 86.10, above the 50-day MA of 87.03, and below the 200-day MA of 94.00, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 54.03 is Neutral, neither overbought nor oversold. The STOCH value of 61.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $93.53B | 68.73 | 9.75% | 2.47% | 5.36% | -1.68% | |
67 Neutral | $21.48B | 25.13 | ― | 2.31% | 4.82% | 25.24% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $89.04B | 35.19 | 71.91% | 3.76% | -5.33% | 163.89% | |
59 Neutral | $1.85B | 1.52 | ― | ― | 38.93% | 952.55% | |
58 Neutral | $33.50B | 229.02 | ― | 3.98% | 10.88% | 51.13% | |
55 Neutral | $38.65B | 18.98 | ― | 5.44% | -26.56% | -369.24% |
* Real Estate Sector Average
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Crown Castle
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-1.26%
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Crown Castle Corporate Events
Business Operations and StrategyExecutive/Board ChangesDividends
Crown Castle Aligns Executive Incentives and Declares Dividend
Positive
Feb 25, 2026
On February 25, 2026, Crown Castle’s board approved a 2026 EMT Annual Incentive Plan that ties executive management cash bonuses, including those of President and CEO Christian H. Hillabrant, to specified corporate financial performance goals, with awards set as a percentage of base salary and subject to board discretion. On the same date, the company announced that its board declared a quarterly dividend of $1.0625 per share, payable March 31, 2026 to shareholders of record as of March 13, 2026, signaling continued capital returns to investors while aligning executive rewards with the firm’s financial results.
The most recent analyst rating on (CCI) stock is a Hold with a $91.00 price target. To see the full list of analyst forecasts on Crown Castle stock, see the CCI Stock Forecast page.
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Crown Castle Launches Major Restructuring and Cost-Saving Plan
Negative
Feb 4, 2026
On February 4, 2026, Crown Castle launched a restructuring plan to streamline its towers and corporate operations, cutting roughly 20% of its headcount in continuing operations and targeting about $65 million in annualized operating cost savings as it works to complete the sale of its Fiber Business. The plan, which is expected to be substantially implemented by the second quarter of 2026 with payments extending through the first quarter of 2027, will generate an estimated $30 million in restructuring charges, including about $20 million in first-quarter 2026 severance and other one-time employee-related cash costs and up to $10 million in additional cash charges tied to office consolidation and downsizing IT contracts; the charges, which will not yield tax benefits due to the company’s REIT status, come as Crown Castle reports 2025 site rental revenue and adjusted EBITDA declines but improved net income and issues a 2026 outlook that anticipates further revenue and EBITDA pressure while modestly growing AFFO and holding its annual dividend at $4.25 per share.
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.