Iron Mountain raises guidance after record second quarter

Iron Mountain reported second-quarter 2026 revenue of USD $2.0 billion and raised its full-year financial guidance.

Net income for the quarter was USD $106.1 million, compared with a net loss of USD $43.3 million a year earlier. Adjusted EBITDA rose to USD $727.0 million from USD $628.4 million, while adjusted funds from operations increased to USD $432.7 million, or USD $1.44 per share.

Revenue increased 18.5% on a reported basis from USD $1.7 billion in the same quarter last year. Excluding foreign exchange effects, revenue rose 17.6%, with storage rental revenue up 11.5% and service revenue up 26.3%.

Organic revenue growth reached 16.8% year on year. Growth businesses in data centres, digital and asset lifecycle management expanded by more than 50% from the same period a year earlier.

Leasing growth

Data centre leasing remained a notable part of the quarter. Iron Mountain leased 110 megawatts year to date, including 13 megawatts in the second quarter and 75 megawatts in July.

Normalised funds from operations were USD $1.01 per share, up from USD $0.87 a year earlier. For the year to date, that figure was USD $1.99 per share, compared with USD $1.64 in 2025.

Adjusted funds from operations per share rose 16.1% to USD $1.44 in the quarter from USD $1.24 a year earlier. Over the first half, AFFO per share was USD $2.87, up from USD $2.41 in the same period of 2025.

First-half net income was USD $255.1 million, compared with a net loss of USD $27.1 million in the prior-year period. Year-to-date revenue increased 20.0% on a reported basis, or 18.1% excluding foreign exchange.

The business remains anchored in physical records storage, but management pointed to momentum in newer activities. The quarter reflected growth across all segments, as well as improved operating leverage from transformation work.

Iron Mountain serves more than 240,000 customers across 61 countries, including about 95% of the Fortune 1000.

William L. Meaney, President and Chief Executive Officer of Iron Mountain, outlined management's view of the quarter and outlook.

"We delivered another record-breaking quarter, with our second quarter results exceeding our expectations due to our team's strong execution of our growth plans and the continued trust of our clients. Our ongoing success continues to be driven by the collective strength in our physical records storage and growth businesses, together with the stewardship we provide to our more than 240,000 customers," said William L. Meaney, President and Chief Executive Officer of Iron Mountain.

Stronger operating performance across the business led Iron Mountain to raise its full-year guidance. The announcement text provided here did not include the revised figures, but linked the higher outlook to second-quarter outperformance and demand trends across several units.

Meaney also highlighted activity in asset lifecycle management, digital services and data centres.

"Looking ahead, we are committed to capitalizing on the significant growth opportunities across our business. We are building momentum in our ALM and digital businesses through increased cross-selling and providing innovative solutions, and we are accelerating data center leasing, with 110 megawatts leased through July. Based on our strong Q2 outperformance and positive outlook, we are increasing our full year guidance," said Meaney.

Separately, the board declared a third-quarter cash dividend of USD $0.864 per share of common stock.