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Revenues increased 13.5% year over year to $1.99 billion, exceeding the consensus mark of $1.98 billion. Results benefited from strong records management operations, growing data center demand and asset lifecycle management (ALM) momentum. Data center revenues advanced 34%, while ALM revenues increased 43%, supporting broad-based growth.
However, IRM stock slid around 7% during the early trading session today.
IRM's Storage and Service Revenues Drive Growth
Storage rental revenues increased 11.3% year over year to $1.15 billion, supported by continued revenue management and expanding storage volumes. Service revenues grew 16.6% to $841.11 million, reflecting contributions from the company's expanding service offerings.
Organic revenues rose 12.8% year over year, excluding acquisitions, divestitures and foreign currency effects. Organic storage rental revenues advanced 11.1%, while organic service revenues climbed 15.1%, reflecting continued underlying business expansion.
Iron Mountain's RIM Business Remains Resilient
Global Records and Information Management (“RIM”) revenues increased 7% year over year to $1.43 billion. Segment storage rental revenues rose 5.4%, while service revenues grew 9.6%, aided by revenue management initiatives and digital solutions activity.
Global storage volumes reached a record 750.7 million cubic feet, up from 743.5 million cubic feet a year ago. Storage facility utilization improved to 81.8% from 80.8%, while the records management retention rate increased to 93.5% from 93.2%.
IRM's Data Center Business Maintains Strong Momentum
Global Data Center revenues climbed to $273.60 million from $204.13 million in the year-ago quarter. Storage rental revenues increased 35.1%, while adjusted EBITDA jumped to $153.98 million from $107.38 million. The segment's adjusted EBITDA margin expanded 370 basis points to 56.3%.
Iron Mountain signed approximately 102 megawatts of new data center leases during the quarter, bringing year-to-date leasing to 137 megawatts. Renewal pricing increased 10% on a cash basis and 15% on a GAAP basis.
The operating portfolio reached 544.6 leasable megawatts, with total leased occupancy of 97.2%. Management expects approximately 325 megawatts of available-to-lease capacity to become energized over the next 24 months. Its existing backlog supports approximately $1.7 billion in annual revenues before additional leasing.
Iron Mountain's ALM and Digital Businesses Expand
Corporate and Other revenues increased 34.5% year over year to $283.94 million. Service revenues grew 36.6%, supported by strong performance in enterprise ALM and data center decommissioning activities.
ALM revenues advanced 43% on a reported basis and 38% organically. Management highlighted a new enterprise contract to provide secure IT asset disposition services across North America.
Digital Solutions also maintained growth momentum, supported by Iron Mountain's AI-powered Insight DXP platform. The company secured a multiyear agreement involving a government digital transformation initiative in the Middle East.
Iron Mountain's Leverage Remains Within Target
IRM ended September with cash and cash equivalents of $188.16 million compared with $204.79 million at June quarter-end. Total assets reached $22.32 billion, up from $21.96 billion.
Net lease-adjusted leverage stood at 4.8 times, unchanged sequentially and within management's target range of 4.5-5.5 times.
IRM Raises Its 2026 Outlook and Dividend
Iron Mountain raised its full-year AFFO per share guidance to $5.94-$6.00 from the previous range of $5.87-$5.93. The revised midpoint of $5.97 exceeds the Zacks Consensus Estimate of $5.92.
Management expects full-year revenues of $7.95-$8.02 billion, adjusted EBITDA of $2.95-$2.98 billion and AFFO of $1.78-$1.80 billion.
For the fourth quarter, IRM projects revenues of approximately $2.03 billion and adjusted EBITDA of $780 million. AFFO per share is expected at $1.57, in line with the consensus estimate.
The board declared a quarterly dividend of 99.3 cents per share, representing a 15% increase. The dividend is payable on Jan. 6, 2027, to shareholders of record as of Dec. 15, 2026.
Digital Realty Trust (DLR - Free Report) reported third-quarter 2026 core FFO per share, excluding net promote, of $2.10, up 11.1% from a year ago. The figure surpassed the Zacks Consensus Estimate by 6.6%. Higher rental revenues and fee income contributed to growth, while record bookings and a rising lease backlog strengthened the company's longer-term revenue visibility.
Prologis (PLD - Free Report) reported third-quarter 2026 core FFO per share of $1.60, outpacing the Zacks Consensus Estimate of $1.58. Results benefited from higher rental revenues, steady leasing demand and improved occupancy levels.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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IRM Q3 AFFO Beats Estimates on Data Center and ALM Growth
Key Takeaways
Iron Mountain Incorporated (IRM - Free Report) reported third-quarter 2026 adjusted funds from operations (AFFO) of $1.53 per share, up 15.9% year over year. The figure surpassed the Zacks Consensus Estimate by 4.1%.
Revenues increased 13.5% year over year to $1.99 billion, exceeding the consensus mark of $1.98 billion. Results benefited from strong records management operations, growing data center demand and asset lifecycle management (ALM) momentum. Data center revenues advanced 34%, while ALM revenues increased 43%, supporting broad-based growth.
However, IRM stock slid around 7% during the early trading session today.
IRM's Storage and Service Revenues Drive Growth
Storage rental revenues increased 11.3% year over year to $1.15 billion, supported by continued revenue management and expanding storage volumes. Service revenues grew 16.6% to $841.11 million, reflecting contributions from the company's expanding service offerings.
Organic revenues rose 12.8% year over year, excluding acquisitions, divestitures and foreign currency effects. Organic storage rental revenues advanced 11.1%, while organic service revenues climbed 15.1%, reflecting continued underlying business expansion.
Iron Mountain's RIM Business Remains Resilient
Global Records and Information Management (“RIM”) revenues increased 7% year over year to $1.43 billion. Segment storage rental revenues rose 5.4%, while service revenues grew 9.6%, aided by revenue management initiatives and digital solutions activity.
Global storage volumes reached a record 750.7 million cubic feet, up from 743.5 million cubic feet a year ago. Storage facility utilization improved to 81.8% from 80.8%, while the records management retention rate increased to 93.5% from 93.2%.
IRM's Data Center Business Maintains Strong Momentum
Global Data Center revenues climbed to $273.60 million from $204.13 million in the year-ago quarter. Storage rental revenues increased 35.1%, while adjusted EBITDA jumped to $153.98 million from $107.38 million. The segment's adjusted EBITDA margin expanded 370 basis points to 56.3%.
Iron Mountain signed approximately 102 megawatts of new data center leases during the quarter, bringing year-to-date leasing to 137 megawatts. Renewal pricing increased 10% on a cash basis and 15% on a GAAP basis.
The operating portfolio reached 544.6 leasable megawatts, with total leased occupancy of 97.2%. Management expects approximately 325 megawatts of available-to-lease capacity to become energized over the next 24 months. Its existing backlog supports approximately $1.7 billion in annual revenues before additional leasing.
Iron Mountain's ALM and Digital Businesses Expand
Corporate and Other revenues increased 34.5% year over year to $283.94 million. Service revenues grew 36.6%, supported by strong performance in enterprise ALM and data center decommissioning activities.
ALM revenues advanced 43% on a reported basis and 38% organically. Management highlighted a new enterprise contract to provide secure IT asset disposition services across North America.
Digital Solutions also maintained growth momentum, supported by Iron Mountain's AI-powered Insight DXP platform. The company secured a multiyear agreement involving a government digital transformation initiative in the Middle East.
Iron Mountain's Leverage Remains Within Target
IRM ended September with cash and cash equivalents of $188.16 million compared with $204.79 million at June quarter-end. Total assets reached $22.32 billion, up from $21.96 billion.
Net lease-adjusted leverage stood at 4.8 times, unchanged sequentially and within management's target range of 4.5-5.5 times.
IRM Raises Its 2026 Outlook and Dividend
Iron Mountain raised its full-year AFFO per share guidance to $5.94-$6.00 from the previous range of $5.87-$5.93. The revised midpoint of $5.97 exceeds the Zacks Consensus Estimate of $5.92.
Management expects full-year revenues of $7.95-$8.02 billion, adjusted EBITDA of $2.95-$2.98 billion and AFFO of $1.78-$1.80 billion.
For the fourth quarter, IRM projects revenues of approximately $2.03 billion and adjusted EBITDA of $780 million. AFFO per share is expected at $1.57, in line with the consensus estimate.
The board declared a quarterly dividend of 99.3 cents per share, representing a 15% increase. The dividend is payable on Jan. 6, 2027, to shareholders of record as of Dec. 15, 2026.
IRM’s Zacks Rank
IRM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Iron Mountain Incorporated Price, Consensus and EPS Surprise
Iron Mountain Incorporated price-consensus-eps-surprise-chart | Iron Mountain Incorporated Quote
Performance of Other REITs
Digital Realty Trust (DLR - Free Report) reported third-quarter 2026 core FFO per share, excluding net promote, of $2.10, up 11.1% from a year ago. The figure surpassed the Zacks Consensus Estimate by 6.6%. Higher rental revenues and fee income contributed to growth, while record bookings and a rising lease backlog strengthened the company's longer-term revenue visibility.
Prologis (PLD - Free Report) reported third-quarter 2026 core FFO per share of $1.60, outpacing the Zacks Consensus Estimate of $1.58. Results benefited from higher rental revenues, steady leasing demand and improved occupancy levels.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.