Iron Mountain (NYSE:IRM) Issues Earnings Results

Key Points

• Iron Mountain beat expectations with $1.43 EPS vs. $0.50 est. and revenue up about 21.5% year-over-year, and it raised Q2 and FY2026 EPS guidance to 1.400 and 5.790–5.860, respectively.
• Growth was led by digital infrastructure and services: data-center revenue grew 47% with accelerated leasing (32 MW YTD and management now sees leasing well above its prior 100 MW guide) while ALM revenue surged 92% and full-year ALM guidance was raised to $950M.
• Operational cash and profitability strengthened (record Q1 operating cash flow of $339M, adjusted EBITDA and AFFO up ~22%, net lease leverage ~4.8x), and the company declared a $0.864 quarterly dividend (2.7% yield) — although a very high DPR (~720%) and notable insider selling may concern some investors.

Iron Mountain (NYSE:IRM - Get Free Report) announced its quarterly earnings data on Thursday. The financial services provider reported $1.43 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.93, Zacks reports. The company had revenue of $1.94 billion during the quarter, compared to analyst estimates of $1.86 billion. Iron Mountain had a net margin of 2.10% and a negative return on equity of 99.59%. The firm's revenue for the quarter was up 21.5% compared to the same quarter last year. During the same period last year, the business earned $1.17 EPS. Iron Mountain updated its Q2 2026 guidance to 1.400-1.400 EPS and its FY 2026 guidance to 5.790-5.860 EPS.

Here are the key takeaways from Iron Mountain's conference call:

• Iron Mountain reported an exceptional Q1 with 22% year-over-year growth in revenue, adjusted EBITDA and AFFO, 17% organic growth (highest in 25+ years), and raised its full-year financial outlook.
• Data center revenue grew 47%, with 22 MW leased in Q1 plus 10 MW in April (32 MW YTD), 400 MW of capacity to be energized over 24 months, and management now expects leasing to be meaningfully above its prior 100 MW guide.
• Asset Lifecycle Management (ALM) revenue surged 92% (77% organic) driven by decommissioning and enterprise wins, and Iron Mountain raised ALM full-year revenue guidance to $950 million (+$100M).
• Operational and cash metrics strengthened — record Q1 operating cash flow of $339M, adjusted EBITDA up 22% with margin expansion, AFFO up 22%, and net lease adjusted leverage improved to 4.8x, enabling higher retained cash flow guidance.
• Component/memory prices helped ALM results but have been volatile — prices rose, then moderated and stabilized; management says current levels align with guidance, but the pricing environment remains a potential source of variability.

Iron Mountain Trading Up 0.9%

NYSE IRM traded up $1.10 during trading hours on Friday, reaching $127.09. The company's stock had a trading volume of 2,399,871 shares, compared to its average volume of 1,825,798. The business has a 50-day simple moving average of $108.73 and a 200 day simple moving average of $98.25. Iron Mountain has a 52 week low of $77.77 and a 52 week high of $127.94. The stock has a market cap of $37.81 billion, a PE ratio of 264.78 and a beta of 1.13.

Iron Mountain Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 3rd. Shareholders of record on Monday, June 15th will be issued a $0.864 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a $3.46 dividend on an annualized basis and a yield of 2.7%. Iron Mountain's dividend payout ratio (DPR) is currently 720.83%.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on IRM. Loop Capital set a $130.00 price target on Iron Mountain in a research note on Wednesday, March 4th. Wells Fargo & Company increased their target price on Iron Mountain from $125.00 to $135.00 and gave the stock an "overweight" rating in a report on Tuesday, April 21st. JPMorgan Chase & Co. lifted their target price on Iron Mountain from $121.00 to $138.00 and gave the stock an "overweight" rating in a research report on Friday. Zacks Research downgraded Iron Mountain from a "hold" rating to a "strong sell" rating in a report on Monday, April 13th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Iron Mountain in a research report on Tuesday, April 21st. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $131.67.

Key Stories Impacting Iron Mountain

Here are the key news stories impacting Iron Mountain this week:

• Positive Sentiment: Q1 beat & guidance raise — Iron Mountain reported stronger-than-expected Q1 results (revenue up ~21.5%, AFFO and EPS beat) and raised FY2026 and Q2 guidance, signaling sustained demand across data centers and digital services. Press Release / Slide Deck
• Positive Sentiment: AI/data-center tailwind — Reuters and other outlets attribute the guidance lift to accelerating demand from AI workloads driving colocation and data-center services, a higher-growth area for IRM. Iron Mountain raises annual forecast on AI-fueled data center boom
• Positive Sentiment: AFFO and profitability momentum — Analysts highlighted strong AFFO growth (~22%) and improved cash-generation metrics that underpin the stock’s re-rating and dividend capacity. Zacks: Q1 AFFO Tops Estimates
• Positive Sentiment: Analyst upgrade / higher target — JPMorgan upgraded IRM to “Overweight” and raised its target to $138, reinforcing buy-side momentum and setting an upgraded valuation anchor. Benzinga
• Neutral Sentiment: Dividend declared — Board announced a $0.864 quarterly dividend (ex-dividend June 15), which supports the REIT income story but is expected rather than transformative. (Company release / earnings materials linked above.)
• Neutral Sentiment: Market technicals and coverage — Coverage pieces and trade notes flagged IRM’s move into resistance/record-high territory after the print, which can attract momentum traders but may also invite short-term profit-taking. Invezz: resistance story
• Negative Sentiment: Insider & institutional selling — Reports note substantial insider sales recently (including multiple executive disposals) and large institutional position shifts, which could concern some investors about near-term liquidity or tax-driven selling pressure.

Insider Buying and Selling

In other Iron Mountain news, EVP Mithu Bhargava sold 59,725 shares of the stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $104.62, for a total value of $6,248,429.50. Following the sale, the executive vice president directly owned 16,054 shares of the company's stock, valued at $1,679,569.48. This trade represents a 78.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO William L. Meaney sold 38,474 shares of the firm's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $102.71, for a total value of $3,951,664.54. Following the completion of the sale, the chief executive officer owned 38,474 shares in the company, valued at $3,951,664.54. The trade was a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 451,648 shares of company stock valued at $48,297,449 over the last quarter. Company insiders own 1.70% of the company's stock.

Institutional Trading of Iron Mountain

Several hedge funds have recently bought and sold shares of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Iron Mountain by 597.9% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,161,589 shares of the financial services provider's stock valued at $322,292,000 after purchasing an additional 2,708,560 shares in the last quarter. Invesco Ltd. lifted its stake in Iron Mountain by 18.1% during the third quarter. Invesco Ltd. now owns 5,066,516 shares of the financial services provider's stock valued at $516,481,000 after purchasing an additional 776,933 shares during the last quarter. AQR Capital Management LLC boosted its holdings in Iron Mountain by 101.8% during the fourth quarter. AQR Capital Management LLC now owns 923,196 shares of the financial services provider's stock worth $76,579,000 after buying an additional 465,724 shares in the last quarter. State Street Corp grew its position in Iron Mountain by 1.9% in the third quarter. State Street Corp now owns 17,131,787 shares of the financial services provider's stock worth $1,759,494,000 after buying an additional 322,144 shares during the last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main grew its position in Iron Mountain by 215.4% in the second quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 377,807 shares of the financial services provider's stock worth $38,752,000 after buying an additional 258,003 shares during the last quarter. 80.13% of the stock is currently owned by institutional investors.

About Iron Mountain

Iron Mountain Incorporated is a global information management company that helps organizations protect, store, and manage their physical and digital information. The firm provides a range of services including secure records storage, document imaging and digitization, secure shredding and destruction, and information governance solutions designed to support regulatory compliance and business continuity. Iron Mountain also offers specialized secure storage environments and logistics for sensitive assets such as art, medical records, and legal archives.

Beyond traditional records management, Iron Mountain has expanded into technology-driven services to support customers' digital transformation.

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