A month has gone by since the last earnings report for SBA Communications (SBAC Quick QuoteSBAC - Free Report) . Shares have added about 0.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is SBA Communications due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

SBA Communications Q2 FFO Beats Estimates on International Leasing Strength

SBA Communications Corporation reported second-quarter 2026 AFFO per share of $3.03, surpassing the Zacks Consensus Estimate of $2.96. However, the figure declined 3.8% from $3.15 in the year-ago quarter.

Total revenues increased 2.3% year over year to $715.3 million and beat the consensus mark of $703.4 million. Strong international site-leasing growth supported the top line, though domestic weakness and higher costs pressured profitability.

SBA Communications Gains From International Leasing

Site-leasing revenues advanced 5.1% year over year to $663.9 million. Excluding foreign-currency movements, growth was 3%. Site leasing contributed 98.2% of the company’s total operating profit, highlighting the importance of recurring tower rental revenues.

International site-leasing revenues surged 30.5% to $211.4 million. Excluding foreign-currency movements, growth was 22.4%. International site-leasing segment operating profit (SOP) climbed 31.9% to $148.8 million, while tower cash flow increased 28% to $147.4 million.

SBA Communications Sees Domestic Pressure

Domestic site-leasing revenues declined 3.7% year over year to $452.5 million. Domestic cash site-leasing revenues also fell 3.7% to $450.2 million as customer consolidation-related churn continued to weigh on results.

Domestic site leasing SOP decreased 4.8% to $381 million. Domestic site leasing tower cash flow fell 4.7% to $377.5 million, while the related margin narrowed to 83.8% from 84.7% in the prior-year quarter.

SBA Communications Faces Cost and Margin Strains

The cost of site leasing increased 13.1% year over year to $134.1 million. Selling, general and administrative expenses rose 9.2% to $77.5 million, reflecting additional pressure on operating efficiency. Net cash interest expense rose 9.5% to $122.1 million.

Adjusted EBITDA increased 1.8% year over year to $483.8 million, but was unchanged, excluding foreign currency impact. The adjusted EBITDA margin edged down to 68% from 68.1%. The tower cash flow margin contracted to 79.5% from 81% a year earlier.

SBA Communications Expands Tower Footprint

The company acquired six communication sites for $10.5 million and built 109 towers during the second quarter. Of the newly constructed towers, 99 were international sites.

SBA Communications ended June with 46,390 communication sites, including 17,362 in the United States and its territories and 29,028 internationally. Total cash capital expenditures were $91.2 million, comprising $15.8 million of non-discretionary spending and $75.4 million of discretionary investments.

SBA Communications Strengthens Liquidity and Capital Structure

Net cash provided by operating activities for the six months ended totaled $407.2 million, up from $368.1 million in the year-ago quarter. The company ended the period with $12.8 billion of total debt, $12.4 billion of net debt and $400 million of cash and cash equivalents, short-term restricted cash and short-term investments.

Net debt to annualized adjusted EBITDA was 6.4 times, within management’s target range of 6-7 times.

SBA Communications Updates 2026 Outlook

Management raised the midpoint of its total revenue outlook by $2 million. Total revenues are now projected between $2.841 billion and $2.886 billion, while site-leasing revenues are expected in the range of $2.651-$2.676 billion. Adjusted EBITDA is forecasted between $1.92 billion and $1.94 billion, reflecting a $1 million reduction at the midpoint. The 2026 AFFO-per-share outlook was increased 2 cents at the midpoint to $11.95-$12.40.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, SBA Communications has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, SBA Communications has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

SBA Communications belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, American Tower (AMT Quick QuoteAMT - Free Report) , has gained 0.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

American Tower reported revenues of $2.75 billion in the last reported quarter, representing a year-over-year change of +4.7%. EPS of $1.86 for the same period compares with $2.60 a year ago.

American Tower is expected to post earnings of $2.82 per share for the current quarter, representing a year-over-year change of +1.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

American Tower has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.