Iron Mountain (NYSE:IRM) Releases Earnings Results, Beats Expectations By $0.90 EPS

Key Points

• Iron Mountain beat quarterly expectations, reporting $1.44 in EPS versus the $0.54 consensus and $2.03 billion in revenue, up 18.5% year over year and ahead of estimates.
• Management raised its 2026 outlook to $7.94 billion–$8.01 billion in revenue and $5.87–$5.93 in EPS, citing strong momentum in data centers, digital solutions, and asset lifecycle management.
• Data-center leasing reached 110 megawatts year to date, while ALM revenue surged 88%; the company also declared a quarterly dividend of $0.864 per share, representing an indicated yield of about 2.7%.

Iron Mountain (NYSE:IRM - Get Free Report) issued its quarterly earnings results on Wednesday. The financial services provider reported $1.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.54 by $0.90, Briefing.com reports. Iron Mountain had a net margin of 3.76% and a negative return on equity of 91.56%. The company had revenue of $2.03 billion during the quarter, compared to analyst estimates of $1.97 billion. During the same period last year, the business earned $1.24 EPS. Iron Mountain's quarterly revenue was up 18.5% compared to the same quarter last year. Iron Mountain updated its Q3 2026 guidance to 1.470-1.470 EPS and its FY 2026 guidance to 5.870-5.930 EPS.

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

• Iron Mountain raised its full-year 2026 guidance, now projecting revenue of $7.94 billion–$8.01 billion, adjusted EBITDA of $2.945 billion–$2.975 billion, and AFFO of $1.76 billion–$1.78 billion.
• Second-quarter results exceeded expectations, with revenue up 19%, adjusted EBITDA up 16%, and AFFO up 17%; growth businesses including data centers, asset lifecycle management (ALM), and digital solutions collectively grew more than 50%.
• Data center momentum remained strong, including 110 megawatts of year-to-date leasing and July agreements totaling 76 megawatts in London and Mumbai; approximately 325 megawatts of additional capacity is expected to energize over the next 24 months.
• ALM revenue surged 88% year over year, and management expects full-year ALM revenue to approach $1 billion, supported by enterprise growth, hyperscale decommissioning, global cross-selling, and the acquisition of Group ATF in France and Belgium.
• Management noted that roughly $30 million of ALM hyperscale decommissioning revenue benefited from projects accelerated into the quarter, highlighting potential lumpiness in future results even as enterprise ALM is expected to sustain strong growth.

Iron Mountain Stock Up 1.4%

Shares of Iron Mountain stock traded up $1.75 on Wednesday, reaching $127.26. The company's stock had a trading volume of 2,711,903 shares, compared to its average volume of 2,059,736. Iron Mountain has a 52 week low of $77.77 and a 52 week high of $134.68. The firm's fifty day simple moving average is $125.06 and its two-hundred day simple moving average is $114.64. The company has a market capitalization of $37.86 billion, a price-to-earnings ratio of 139.85 and a beta of 1.20.

Iron Mountain Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Shareholders of record on Tuesday, September 15th will be paid a dividend of $0.864 per share. This represents a $3.46 annualized dividend and a yield of 2.7%. The ex-dividend date is Tuesday, September 15th. Iron Mountain's dividend payout ratio (DPR) is currently 380.22%.

More Iron Mountain News

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

• Positive Sentiment: Q2 results exceeded expectations. Iron Mountain reported revenue of $2.03 billion, up 18.5% year over year and ahead of the $1.97 billion consensus estimate. Adjusted EPS was $1.44, substantially above the $0.54 consensus cited in company coverage and also ahead of the $1.40 Zacks estimate. Iron Mountain Reports Second Quarter 2026 Results
• Positive Sentiment: Growth businesses remained key drivers. Data center, digital, and ALM revenue collectively grew more than 50% year over year. Data center leasing reached 110 megawatts year to date, including 75 megawatts contracted in July, supporting expectations for continued expansion. IRM Q2 AFFO Beats Estimates on Data Center and ALM Growth
• Positive Sentiment: Full-year guidance was raised. Iron Mountain now expects 2026 revenue of approximately $7.94 billion to $8.01 billion and EPS of $5.87 to $5.93, above the $5.40 analyst consensus. Third-quarter EPS guidance of $1.47 also exceeded the $1.35 consensus, signaling management’s confidence in near-term performance.
• Positive Sentiment: Dividend maintained. The company declared a quarterly dividend of $0.864 per share, payable October 2 to shareholders of record September 15. The indicated yield is approximately 2.7%. Iron Mountain Earnings Report

Insider Activity

In related news, CAO Daniel Borges sold 7,189 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $125.50, for a total transaction of $902,219.50. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Walter C. Rakowich sold 757 shares of Iron Mountain stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $124.45, for a total value of $94,208.65. Following the completion of the sale, the director owned 1,135 shares of the company's stock, valued at $141,250.75. The trade was a 40.01% 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. Over the last 90 days, insiders sold 137,260 shares of company stock valued at $17,361,672. Corporate insiders own 1.70% of the company's stock.

Institutional Trading of Iron Mountain

Several large investors have recently modified their holdings of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Iron Mountain by 597.9% in the third 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 worth $322,292,000 after purchasing an additional 2,708,560 shares during the last quarter. Invesco Ltd. boosted its holdings in shares of Iron Mountain by 18.1% in the third quarter. Invesco Ltd. now owns 5,066,516 shares of the financial services provider's stock worth $516,481,000 after buying an additional 776,933 shares during the last quarter. AQR Capital Management LLC grew its position 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 valued at $76,579,000 after buying an additional 465,724 shares during the period. State Street Corp raised 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 acquiring an additional 322,144 shares during the period. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main boosted its stake in shares of Iron Mountain by 215.4% during the 2nd 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 acquiring an additional 258,003 shares during the last quarter. Institutional investors own 80.13% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Wells Fargo & Company raised their target price on shares of Iron Mountain from $125.00 to $135.00 and gave the company an "overweight" rating in a research note on Tuesday, April 21st. Wall Street Zen cut Iron Mountain from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Zacks Research upgraded Iron Mountain from a "strong sell" rating to a "hold" rating in a research note on Tuesday, May 12th. JPMorgan Chase & Co. raised their price objective on Iron Mountain from $121.00 to $138.00 and gave the company an "overweight" rating in a research report on Friday, May 1st. Finally, Truist Financial set a $140.00 price objective on Iron Mountain in a research note on Friday, May 1st. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Iron Mountain has a consensus rating of "Moderate Buy" and an average price target of $134.33.

Iron Mountain Company Profile

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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