Iron Mountain (IRM) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 results with total revenue up 22% year-over-year and organic growth of 17%, driven by strong performance in data center, ALM, and digital businesses, which now comprise over 30% of total revenue.

• Adjusted EBITDA and AFFO both increased 22% year-over-year, reflecting strong operational execution and margin expansion.

• Net income rose sharply to $149 million, up from $16 million in Q1 2025; reported EPS was $0.48, and Adjusted EPS was $0.60, up 40% year-over-year.

• Growth businesses (data center, ALM, digital) grew over 50% year-over-year, now representing 33% of total revenue, with cross-selling efforts accelerating.

• Maintained a strong balance sheet with leverage at 4.8x, within the target range, and increased dividend by 10% in November 2025, marking four consecutive years of dividend growth.

Financial highlights

• Q1 2026 revenue was $1.94 billion, up 22% year-over-year; organic growth was 17%.

• Adjusted EBITDA rose 22% to $708 million, with a margin of 36.6%, up 20 basis points.

• AFFO increased 22% to $426 million ($1.43 per share), exceeding projections.

• Net income attributable to shareholders increased to $149 million, up from $16 million in Q1 2025; Adjusted EPS was $0.60.

• Operating cash flow reached $339 million, up $141 million year-over-year, marking a record first quarter.

Outlook and guidance

• Raised full-year 2026 guidance: revenue now expected at $7.825–$7.93 billion, Adjusted EBITDA at $2.925–$2.97 billion, and AFFO at $1.735–$1.76 billion ($5.79–$5.86 per share), representing 13–14% growth at midpoint.

• Q2 2026 revenue expected at ~$1.97 billion (+15% YoY), Adjusted EBITDA at $715 million (+14% YoY), AFFO at $418 million (+13% YoY).

• Management expects continued revenue and Adjusted EBITDA growth in 2026, supported by new product offerings, cross-selling, and market expansion.

• Capital expenditures for 2026 are projected at approximately $2.2 billion, with $2.05 billion allocated to growth investments.