Iron Mountain Q2 revenue beats on strong data center demand

Iron Mountain

05/08/2026 11:55

Overview
Information management firm's Q2 revenue rose 18.5%, beating analyst expectations
Adjusted EPS for Q2 rose 25% to $0.60, beating analyst expectations
Adjusted EBITDA climbed 15.7% to $727 mln, beating analyst expectations

Outlook
Iron Mountain raises 2026 revenue guidance to $7.94 bln-$8.01 bln
Company expects 2026 adjusted EBITDA of $2.945 bln-$2.975 bln
Iron Mountain sees 2026 AFFO per share at $5.87-$5.93

Result Drivers
GROWTH BUSINESSES - Data center, digital, and asset lifecycle management businesses collectively grew more than 50% year over year
SERVICE REVENUE - Service revenue increased 27% year over year, outpacing storage rental revenue growth
DATA CENTER LEASING - Data center leasing reached 110 megawatts year to date, including 13 megawatts in Q2 and 75 megawatts in July

Company press release: ID:nBw1hv9W6a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$2.03 bln
$1.97 bln (9 Analysts)
Q2 Adjusted EPS
Beat
$0.60
$0.56 (6 Analysts)
Q2 EPS
 
$0.34
 
Q2 Net Income
 
$106 mln
 
Q2 Adjusted EBITDA
Beat
$727 mln
$710.15 mln (9 Analysts)
Q2 Adjusted EBITDA Margin
 
35.80%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy"
Wall Street's median 12-month price target for Iron Mountain Inc is $141.00, about 12.3% above its August 4 closing price of $125.51
The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 50 three months ago

Reuters Recommended Reads
Aug 4 - Texas governor orders pause on new data center approvals pending audit
Aug 4 - AI data-centre race builds $1 trillion lease burden for Big Tech
Aug 4 - Trump administration drafting ban on Chinese data center devices, sources say

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)