Iron Mountain (NYSE:IRM) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Iron Mountain (NYSE:IRM) posted its quarterly earnings results on Thursday. The financial services provider reported $1.44 earnings per share for the quarter, topping the consensus estimate of $1.39 by $0.05, Briefing.com reports. Iron Mountain had a net margin of 2.40% and a negative return on equity of 112.70%. The business had revenue of $1.84 billion during the quarter, compared to the consensus estimate of $1.80 billion. During the same period in the previous year, the firm posted $1.24 earnings per share. The firm’s revenue for the quarter was up 16.6% on a year-over-year basis. Iron Mountain updated its FY 2026 guidance to 5.690-5.790 EPS and its Q1 2026 guidance to 1.390-1.390 EPS.

Here are the key takeaways from Iron Mountain’s conference call:

• Iron Mountain reported another record year in 2025 with revenue up 12% to $6.9B, Adjusted EBITDA up 15% to $2.57B, and AFFO up 15% to $1.54B, and the fourth quarter beat expectations with ~17% YoY growth.
• The data center business is a major growth driver—data center revenue +30% in 2025 (Q4 +39%)—and management expects the current backlog to drive >25% data center revenue growth in 2026, >20% in 2027, and plans to lease 100+ MW in 2026 from a 400 MW land bank.
• Asset Lifecycle Management (ALM) showed outsized momentum—ALM revenue +63% in 2025 (40% organic); Q4 organic +56%—and Iron Mountain guided to about $850M ALM revenue in 2026
• Management gave a confident 2026 outlook with total revenue $7.625B–$7.775B, Adjusted EBITDA $2.875B–$2.925B, and AFFO $1.705B–$1.735B, plans modestly lower capex (growth ~$2.0B, recurring ~$150M), and ended 2025 with net lease adjusted leverage of ~4.9x.
• Some risks/pressure points remain—services mix temporarily reduced overall gross margin despite services margin improvement, data center expansion depends on pre‑leasing and backlog conversion, FX and quarter-to-quarter data management variability can affect near-term comps, and the Treasury contract is conservative in 2026 ($45M) with the expected larger ramp not certain until future years.

Iron Mountain Stock Performance

IRM traded up $5.57 during trading on Thursday, hitting $105.79. 5,864,195 shares of the stock were exchanged, compared to its average volume of 2,113,689. Iron Mountain has a 1 year low of $72.33 and a 1 year high of $110.91. The firm has a 50 day simple moving average of $87.87 and a 200 day simple moving average of $93.53. The firm has a market cap of $31.27 billion, a price-to-earnings ratio of 199.62 and a beta of 1.16.

Key Headlines Impacting Iron Mountain

Here are the key news stories impacting Iron Mountain this week:

• Positive Sentiment: Q4 results beat street expectations: EPS $1.44 vs. $1.39 consensus and revenue $1.84B vs. $1.80B; revenue rose ~16.6% year‑over‑year — a clear operational beat that supports the rally. Earnings and revenues top estimates
• Positive Sentiment: AFFO and other cash metrics beat expectations, reinforcing REIT-style cash generation and supporting the dividend/capital allocation story. AFFO beat article
• Positive Sentiment: Company raised guidance sharply: Q1 FY2026 EPS guided to 1.390 (vs. ~0.83 consensus) and FY2026 EPS to 5.690–5.790 (vs. ~3.44 consensus); revenue outlook also above estimates — a material upside to forward earnings expectations. (Guidance details in company release and call.) Press Release / Guidance
• Positive Sentiment: Data‑center leasing demand (AI workloads) cited as the growth driver — Iron Mountain says land leases and data‑center expansion are lifting revenue and underpinning multi‑year growth. This thematic tailwind is a key catalyst for multiple and growth re‑rating. Reuters: forecasts above estimates
• Neutral Sentiment: Company call and transcript provide color on execution, bookings and capex — useful for confirming sustainability of data‑center growth and timing of land lease projects. Earnings call transcript
• Neutral Sentiment: Press/coverage notes Iron Mountain’s fifth straight year of record results, highlighting momentum but requiring follow‑through in future quarters. Benzinga: record results
• Negative Sentiment: Valuation and profitability caveats: the stock is trading at a rich P/E (~200x reported), with low net margin (~2.4%) and a negative ROE — metrics that make future growth and execution critical to justify the multiple. MarketBeat: results and metrics

Insiders Place Their Bets

In other Iron Mountain news, EVP Mark Kidd sold 6,000 shares of the stock in a transaction dated Friday, January 2nd. The stock was sold at an average price of $83.10, for a total value of $498,600.00. Following the completion of the sale, the executive vice president directly owned 55,081 shares in the company, valued at approximately $4,577,231.10. This trade represents a 9.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO William L. Meaney sold 69,125 shares of the business’s stock in a transaction dated Monday, December 1st. The stock was sold at an average price of $83.34, for a total value of $5,760,877.50. The SEC filing for this sale provides additional information. Insiders sold a total of 119,607 shares of company stock worth $9,970,025 over the last quarter. Company insiders own 1.90% of the company’s stock.

Institutional Trading of Iron Mountain

Several hedge funds and other institutional investors have recently bought and sold shares of IRM. Johnson Financial Group Inc. acquired a new position in Iron Mountain in the 3rd quarter valued at about $32,000. Triumph Capital Management grew its position in Iron Mountain by 1,056.8% in the fourth quarter. Triumph Capital Management now owns 428 shares of the financial services provider’s stock worth $35,000 after acquiring an additional 391 shares during the period. Wealth Watch Advisors INC acquired a new stake in Iron Mountain during the third quarter worth $44,000. Quarry LP lifted its stake in shares of Iron Mountain by 52.7% in the 3rd quarter. Quarry LP now owns 852 shares of the financial services provider’s stock valued at $87,000 after purchasing an additional 294 shares during the last quarter. Finally, MUFG Securities EMEA plc purchased a new position in shares of Iron Mountain during the 2nd quarter worth $89,000. 80.13% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

IRM has been the topic of several research reports. Barclays reiterated an “overweight” rating and issued a $126.00 price objective on shares of Iron Mountain in a research note on Tuesday, January 13th. Zacks Research upgraded shares of Iron Mountain from a “strong sell” rating to a “hold” rating in a research note on Monday, October 20th. JPMorgan Chase & Co. upped their price objective on Iron Mountain from $100.00 to $111.00 and gave the stock an “overweight” rating in a research note on Thursday, November 6th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Iron Mountain in a report on Thursday, January 22nd. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, Iron Mountain has a consensus rating of “Moderate Buy” and an average target price of $113.00.

About Iron Mountain

Iron Mountain Incorporated is a global information management company that helps organizations protect, store, and manage their physical and digital information. The firm provides a range of services including secure records storage, document imaging and digitization, secure shredding and destruction, and information governance solutions designed to support regulatory compliance and business continuity. Iron Mountain also offers specialized secure storage environments and logistics for sensitive assets such as art, medical records, and legal archives.

Beyond traditional records management, Iron Mountain has expanded into technology-driven services to support customers’ digital transformation.

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