IRM · Q1 2026 Earnings

Q2 FY2025: "Sustaining double-digit growth" → Q3 FY2025: "Sustaining is operational reality" → Q4 FY2025: "Materially above the 2022 long-term targets, 2027 pre-committed" → Q1 FY2026: "25-year organic growth high, FY guide raised one quarter into the year"

Data center capacity language hardened from "energization pipeline" to "no capital constraint." Three quarters ago Heitman was defending capex by noting pre-leased Arizona/London/Northern Virginia assets; last quarter management framed the 400MW energization as the 2027 underwrite; this quarter management explicitly removed the balance-sheet caveat: "we don't have any constraint on capital in terms of the growth of the data center side…The CapEx expectation we're using continues to be slightly down from last year." Paired with the "meaningfully above 100MW" signings revision and 507.2MW now energized (+19MW QoQ), the posture has shifted from disciplined growth-within-target to unconstrained capacity expansion at falling unit capex. That is a fundamentally different cycle position than "we are not speculatively building" from Q3 FY2025.

Government moved from federal pilot to FedRAMP-anchored TAM expansion. Q3 FY2025 introduced Treasury as a $714M five-year contract proof point. Q4 FY2025 quantified the 2026 contribution at $45M. This quarter Meaney elevated the narrative: "FedRAMP high authorization for Insight will fundamentally shift our competitive stance for digital services within the U.S. public sector," with Q1 public sector bookings the "second best in our company's history." The signal: federal is no longer a single-contract story being defended through a multi-year ramp — it is now framed as a platform expansion into mission-critical workloads, with FedRAMP high authorization the technical credential that unlocks the broader TAM. The $100M+ 2027 floor previously felt like a Treasury-specific number; with FedRAMP it begins to look conservative.

ALM repositioned from "growth pillar with memory-pricing caveat" to "vendor-consolidation winner." Last quarter management addressed the ALM volume-vs.-pricing question by noting "pricing normalizes in guidance." This quarter the framing pivoted to wallet consolidation: "A new multi-year agreement with a global advertising company that consolidated its highly fragmented vendor base and selected Iron Mountain as its sole enterprise-wide ALM services partner." The $100M FY guide raise to $950M without a stated change in pricing assumptions implies volume and share gains are doing the work — and a memory supply shortage flagged in tone is now framed as "extending IT refresh cycles while creating incremental service and remarketing revenue," i.e. converted from risk to tailwind.

Storage business reframed from "stable foundation" to active growth contributor. Meaney highlighted the storage business as delivering "its best quarterly growth in years" and "well on track to deliver its 38th consecutive year of organic storage rental growth." Combined with the 17% total organic growth print — which mathematically requires the legacy business to be growing materially faster than its historical mid-single-digit baseline — management is asking the market to revalue the 70% of revenue that has historically been treated as a low-growth annuity. That is the most significant tonal shift across the four-quarter arc.

Confidence framing notably more expansive than any prior quarter. "We are still in the early phases of our long-term growth journey, and our opportunity has never been more clear and tangible" — delivered on the back of 22% reported revenue growth, 17% organic, and a $175M FY guide raise — is the most forward-leaning statement Meaney has made in the four quarters of coverage. The combination of guide raises across every line, a Q2 guide that implies 15% YoY growth (not deceleration), and explicit "no capital constraint" language for data center suggests management views FY2026 as the operational floor, not the ceiling.