Lamar Advertising Q3 2026: Revenue Beat, AFFO Surges 9.5%

Lamar Advertising posted net revenue of $624.47 million for the third quarter of 2026, up 6.7% year over year and just ahead of the $621.86 million Wall Street consensus. The top-line beat came despite a slight GAAP earnings miss, with diluted EPS of $1.59 missing expectations of $1.65. The quarter's results reflected strong demand from national advertisers, the company's expanding digital billboard network, and a surge in political advertising dollars.

For a REIT like Lamar, GAAP EPS is rarely the number investors focus on. Adjusted funds from operations, or AFFO, is the standard measure of a real estate investment trust's true cash-generating ability, and on that metric the quarter looked considerably stronger. Diluted AFFO per share rose 9.5% to $2.41, while adjusted EBITDA climbed 9.3% to $306.86 million, outpacing revenue growth and signaling disciplined cost control as direct advertising and G&A expenses rose only 4.8%.

Management was confident enough in the quarter's momentum, and in what CEO Sean Reilly called a strong start to the fourth quarter, to raise its full-year outlook. The company now projects diluted AFFO per share of $8.87 to $8.97 for fiscal 2026, with projected full-year AFFO of $916.2 million to $926.2 million. Full-year diluted EPS guidance was set at $6.01 to $6.04.

Lamar's digital billboard platform, which counts over 5,900 units across the United States, was a clear engine of the quarter's outperformance. The company spent $22.9 million on digital billboard capital expenditures during Q3, while overall capex of $44.98 million fell 9.76% from a year earlier, keeping free cash flow healthy at $220.14 million, up 18.5% year over year. That combination of growth investment and cost discipline is what underpinned management's confidence in raising guidance.

Lamar carries total net debt of $3.5 billion, and management flagged that economic conditions, including tariffs, trade restrictions, and geopolitical tensions, remain potential headwinds for advertising demand. The company also extended its accounts receivable securitization program maturity to October 1, 2029, adding flexibility to its financing structure as it manages that debt load.