Iron Mountain Q3 2026 Earnings: 13.5% Revenue Growth Supports Higher Guidance

Iron Mountain (NYSE: IRM) reported Q3 2026 revenue of $1.991 billion, up 13.5% from $1.754 billion a year earlier, while diluted GAAP EPS rose to $0.41 from $0.28. Net income increased 49.4% to $128.9 million, and adjusted EBITDA rose 13.3% to $748.0 million as storage rental and service revenue both expanded. The data center, digital, and asset lifecycle management businesses collectively grew more than 30%, supporting a higher full-year outlook.

Core Results

Revenue increased 13.3% on a constant-currency basis and 12.8% organically, indicating that most of the reported growth came from the business rather than currency movements. Management attributed the adjusted EBITDA increase to higher revenue and adjusted EBITDA across each segment, along with improved operating leverage from its transformation activities.

Net income benefited primarily from higher operating income. Unless otherwise noted, the following amounts are in millions of U.S. dollars.

Adjusted EPS, adjusted EBITDA, and AFFO are non-GAAP measures. The GAAP diluted EPS figure is based on net income attributable to Iron Mountain.

Business and Segment Performance

Storage rental revenue increased 11.3% to $1.150 billion, or 11.2% excluding currency effects. Service revenue grew faster, rising 16.6% to $841.1 million, or 16.3% at constant currency. Both major revenue categories therefore contributed meaningfully to the overall increase.

Iron Mountain’s data center, digital, and asset lifecycle management businesses collectively grew more than 30% from the prior year. The company did not provide separate quarterly revenue amounts for these three businesses, so their individual contributions cannot be isolated from the supplied results.

Data center leasing reached 102 megawatts during Q3 and 137 megawatts year to date. These figures represent signed lease volume rather than revenue already recognized, making deployment and revenue conversion important follow-up measures.

Profitability, AFFO, and Balance Sheet

Adjusted EBITDA margin was 37.6%, unchanged from Q3 2025 but up nearly 200 basis points sequentially. AFFO rose 16.6% to a quarterly record of $458.4 million, driven by the increase in adjusted EBITDA, while AFFO per share advanced 15.9% to $1.53.

The board increased the quarterly dividend by 15% to $0.993 per share. The Q4 2026 dividend is payable on January 6, 2027, to shareholders of record on December 15, 2026.

Cash and cash equivalents were $188.2 million on September 30, up from $158.5 million at the end of 2025. Net property, plant, and equipment increased to $10.674 billion from $9.546 billion, reflecting continued investment in the asset base.

The current portion of long-term debt rose to $1.233 billion from $216.1 million at year-end, while long-term debt excluding the current portion increased to $16.739 billion from $16.216 billion. Combined current and long-term borrowings were therefore about $18.0 billion, compared with $16.4 billion at the end of 2025.

Lower Transformation Charges Widened GAAP Operating Margin While Adjusted Margin Held Flat

Reported operating income grew considerably faster than revenue because total operating expenses increased 9.3%, below the 13.5% revenue increase. Iron Mountain recorded no restructuring and other transformation expense in Q3 2026, compared with $47.3 million in the prior-year quarter, while selling, general, and administrative expense increased only 4.0%.

As a result, the GAAP operating margin rose to approximately 20.6% from 17.6%, an improvement of about 300 basis points. However, adjusted EBITDA margin remained unchanged at 37.6% because adjusted EBITDA excludes restructuring and transformation charges. This distinction shows that part of the faster GAAP profit growth reflected an easier expense comparison, while adjusted operating profitability grew broadly in line with revenue.

Guidance

Iron Mountain raised its full-year 2026 financial guidance, citing continued operational performance across the business. The updated ranges imply approximately 15% to 16% year-over-year growth at their midpoints.

The release identifies the guidance as raised but does not provide the previous ranges, so the size of the revision cannot be measured from the supplied information. Iron Mountain also does not reconcile its non-GAAP guidance because certain items, including currency effects, real estate dispositions, and other income or expense, are not available without unreasonable effort.

Management Commentary

President and CEO William L. Meaney attributed the quarter to the combined performance of physical records storage and the company’s growth businesses. Management said cross-selling in asset lifecycle management and digital services is accelerating, while the 137 megawatts of year-to-date data center leasing supports future growth opportunities. The dividend increase was linked to continued AFFO growth and management’s positive outlook.

Recent Insider Transactions

The supplied insider data lists 10 recent transactions between August 7 and November 2, 2026, all involving direct ownership. Seven were sales with reported values totaling about $15.7 million, while three were derivative-security exercises or conversions totaling about $4.3 million; the records do not establish the insiders’ motives.

Risks Investors Should Monitor

• Debt and refinancing exposure: Current and long-term borrowings totaled approximately $18.0 billion at quarter-end, while the current portion of long-term debt rose substantially from year-end. Interest expense was $216.5 million for the quarter, up 3.2% year over year.
• Data center execution and capital requirements: The 102 megawatts leased during Q3 can support future growth, but realizing that opportunity depends on funding capital expenditures, deploying capacity, and managing power costs and potential service interruptions.
• Physical storage demand: Storage rental revenue continued to grow, but the company identifies the transition from paper and tape storage to alternative technologies as a risk to demand for physical space and related services.
• Margin durability: GAAP operating profit benefited from the absence of prior-year transformation charges, while adjusted EBITDA margin was flat year over year. Further margin expansion will therefore depend more heavily on revenue growth and operating leverage.

Summary

Iron Mountain’s Q3 2026 results combined double-digit growth in both storage rental and service revenue with faster expansion in data center, digital, and asset lifecycle management operations. Higher revenue and operating leverage lifted adjusted EBITDA and AFFO, while the absence of prior-year transformation charges helped GAAP operating profit grow even faster. The next areas to monitor are execution against the raised guidance, conversion of data center leasing into revenue, margin development, and the company’s increased debt and near-term refinancing requirements.