Iron Mountain (IRM) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results with total revenue up 19% year-over-year and organic growth of 17%, driven by robust execution in data center, ALM, and digital businesses.

• Growth businesses (data center, ALM, digital) now account for 35% of Q2 revenue, with data center revenue up 39% and ALM revenue up 88% year-over-year.

• Net income was $106 million, reversing a loss in Q2 2025; Adjusted EBITDA increased 16% to $727 million, and AFFO rose 17% to $433 million ($1.44 per share).

• Maintained strong balance sheet with leverage at 4.8x, the lowest since pre-REIT conversion in 2014.

Financial highlights

• Q2 2026 revenue reached $2.03 billion, up $317 million (19%) year-over-year, surpassing projections by $65 million.

• Adjusted EBITDA was $727 million (35.8% margin), up $99 million (16%) year-over-year.

• AFFO was $433 million, up $63 million (17%) year-over-year; AFFO per share rose 16% to $1.44.

• Net income attributable to shareholders was $106 million, compared to a loss of $43 million in Q2 2025; Adjusted EPS was $0.60, up 25%.

• Year-to-date operating cash flow was $888 million, up $315 million from last year; free cash flow improved by $441 million in the first half.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $7.94–$8.01 billion, representing 16% growth at midpoint.

• Adjusted EBITDA guidance increased to $2.945–$2.975 billion (15% growth at midpoint); AFFO guidance to $1.76–$1.78 billion (15% growth at midpoint); AFFO per share $5.87–$5.93.

• Q3 2026 revenue expected at $1.98 billion, adjusted EBITDA at $745 million, both up 13% year-over-year.

• ALM full-year revenue now expected to approach $1 billion, reflecting continued strong growth.

• Capital expenditures for 2026 projected at $2.2 billion, with $2.05 billion allocated to growth investments, primarily in data centers.