IRM · Q2 2026 Earnings

Bullish

Iron Mountain

Reported August 5, 2026

30-second summary

Revenue grew 18.5% YoY to $2.029B in Q2 FY2026, beating consensus of $1.97B by 3.0% and the prior quarter's ~$1.965B guide by $64M, with adjusted EBITDA of $727.0M (margin 35.8%) and AFFO/share of $1.44 clearing the $1.40 guide by 2.9%. Management raised FY2026 revenue guidance by $100M at the midpoint to $7.94–$8.01B (~16% YoY vs. prior ~14%) and lifted EBITDA, AFFO, and AFFO/share alongside — but the disclosed 110MW of YTD data center signings through July, already above the "meaningfully above 100MW" language telegraphed last quarter, is the more forward-loaded signal.

Headline numbers

EPS

Q2 FY2026

$0.60

+7.1% vs est.

Revenue

Q2 FY2026

$2.03B

+18.5% YoY

+3.0% vs est.

Operating margin

Q2 FY2026

18.4%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$2.03B	$1.71B	+18.5%	$1.94B	+4.8%
EPS	$0.60	$0.48	+25.0%	$0.60	+0.0%
Operating margin	18.4%	15.2%	+320bps	20.4%	-200bps

Guidance

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	approximately $1.965 billion	$2.029 billion	+3.3% above guide	Beat
Adjusted EBITDA	Q2 FY2026	approximately $715 million	$727.0 million	+$12M above guide	Beat
AFFO	Q2 FY2026	approximately $418 million	$440 million (inferred from AFFO Per Share $1.44)	+$22M above guide	Beat
AFFO Per Share	Q2 FY2026	$1.40	$1.44	+2.9% above guide	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q3 FY2026	~$1,980 million	+13% YoY
Adjusted EBITDA	Q3 FY2026	~$745 million	+13% YoY
AFFO	Q3 FY2026	~$440 million	+12% YoY
AFFO Per Share	Q3 FY2026	~$1.47	+11% YoY

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY2026	$7,825 - $7,925 billion	$7,940 - $8,010 million	Low raised $15-85M; high raised $85M; midpoint +$100M (+1.3%)	Raised
Adjusted EBITDA	FY2026	$2,925 - $2,965 million	$2,945 - $2,975 million	Low raised $20M; high raised $10M; range maintained; midpoint +$15M (+0.5%)	Raised
AFFO	FY2026	$1,735 - $1,755 million	$1,760 - $1,780 million	Low raised $25M; high raised $25M; midpoint +$25M (+1.4%)	Raised
AFFO Per Share	FY2026	$5.79 - $5.86	$5.87 - $5.93	Low raised $0.08; high raised $0.07; midpoint +$0.075 (+1.3%)	Raised

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Global RIM Business Storage Rental	$0.857B	—	+6.6%
Global RIM Business Service	$0.577B	—	+10.9%
Global Data Center Business Storage Rental	$0.259B	—	+37.5%
Global Data Center Business Service	$0.004B	—	+254.6%
Corporate and Other Storage Rental	$0.019B	—	+4.6%
Corporate and Other Service	$0.314B	—	+73.7%

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Organic Revenue Growth	16.8%	—	—
Adjusted EBITDA	$727.0M	$628.4M	—
Adjusted EBITDA Margin	35.8%	36.7%	—
Data Center Leasing - Year to Date	110 MW	—	—
Data Center Leased Capacity (Total)	97.1%	—	—
Global Storage Volume	747.9M cubic feet	735.8M cu ft	—
Records Management Retention Rate	93.4%	—	—
AFFO per Share	$1.44	$1.24	—

Management tone

No transcript available for Q2 FY2026 — tone analysis skipped. Prior-quarter arc: Customer optimization hangover → AI experiments → AI-driven re-acceleration → Capacity expansion. Management's press-release qualitative statements ("strong operational performance," "accelerating data center leasing, with 110 megawatts leased through July," "building momentum in our ALM and digital businesses through increased cross-selling") are consistent with the expansive Q1 posture but cannot be triangulated against Q&A framing this quarter.

Answers to last quarter's watch list

Q2 FY2026 revenue landing at or above the ~$1.965B (+15% YoY) guide. Resolved decisively above. Revenue printed $2.029B at +18.5% YoY — a $64M dollar beat and ~350bps above the implied +15% YoY guide. Not a pull-forward: management raised the FY guide by another $100M at the midpoint in direct response, and Q3 is guided to ~$1.98B (+13% YoY on the $1.75B base), keeping the raised annual trajectory intact.

Resolved positively

EBITDA margin path back above 37%. Not achieved. Q2 EBITDA margin came in at 35.8%, down 80bps QoQ from Q1's 36.6% rather than expanding. The FY EBITDA guide midpoint of ~37.1% now requires H2 to average ~37.9% — a ~210bps sequential lift versus the H1 run rate. The Q3 EBITDA guide of ~$745M on ~$1.98B revenue implies 37.6%, so management is signalling recovery, but the trajectory is behind where it needed to be at this checkpoint. Incremental services and ALM revenue continues to come in at below-corporate margin, and the modest $15M EBITDA guide raise on a $100M revenue raise confirms it.

Resolved negatively

ALM trajectory against the raised $950M FY anchor. ALM sits within Corporate and Other – Service, which printed $314M at +73.7% YoY versus $259M in Q1. Assuming ALM remains the dominant driver (~$232M in Q1 per prior transcript disclosure), the Q2 ALM run rate is likely tracking well above the $237M quarterly pace required to hit $950M. Without a transcript-level ALM breakout for Q2, the FY anchor update is not confirmed, but the segment aggregate is running ahead.

Continue monitoring

Data center new lease signings cadence and tightening of the >25% FY growth language. Signings resolved decisively above bar; growth-rate language not disclosed on the print. YTD data center signings reached 110MW through July, already clearing the ">100MW" full-year anchor with five months left in the year. Data center leased capacity holds at 97.1%. Segment revenue growth of +37.5% in Q2 remains well above the >25% FY guide. Management did not formally re-anchor the >25% number in the release; that update would come in transcript commentary. Status: Resolved positively (on signings); Continue monitoring (on growth-rate language).

Federal/FedRAMP pipeline disclosure. Not addressed in the press release. No quantitative update on the $45M FY2026 Treasury contribution or federal pipeline sizing was disclosed.

Not resolved

Storage rental organic growth holding above 12%. Storage rental YoY growth held at healthy levels — Global RIM Storage Rental at +6.6% (reported) is a step down from Q1's +8.7%, but total organic revenue growth of 16.8% (near Q1's 17%) suggests the underlying storage organic component remains elevated. Without a transcript disclosure of the specific organic storage rental figure, the 12%+ threshold cannot be confirmed.

Continue monitoring

What to watch into next quarter

Q3 FY2026 revenue landing at or above the ~$1.98B (+13% YoY) guide. A clean print sustains the FY revenue guide upper bound; the Q3 YoY step-down from +18.5% to +13% partly reflects tougher comps (Q3 FY2025 was $1.754B, the second-largest quarter of the year), but any miss would reopen the question of whether the $8.010B FY upper bound is anchored correctly.

EBITDA margin recovery to 37%+ in Q3. The Q3 EBITDA guide of ~$745M on ~$1.98B revenue implies 37.6%. Watch whether Q3 delivers or comes in at the H1 ~36% level — the latter would mean the FY EBITDA midpoint is at risk and confirm the services/ALM mix is structurally more dilutive than management modeled at the start of the year.

Whether the FY2026 data center revenue growth language is tightened above the >25% floor. With 110MW of YTD signings already clearing the "meaningfully above 100MW" bar, watch whether Q3 transcript commentary refines the >25% growth number into a specific higher range — that is the cleanest signal that FY2027 is tracking ahead of the 20%+ pre-committed floor.

ALM FY anchor revision from $950M. Q1 ALM printed at $232M and the Q2 Corporate/Other Service line stepped to $314M (+73.7%). If Q3 sees the FY ALM number raised for a second time this year, the vendor-consolidation thesis moves from cyclical to structural.

Federal/FedRAMP pipeline disclosure. Absent from the Q2 print; watch for any quantification of the FedRAMP-high TAM opportunity or upward revision to the $45M FY2026 Treasury contribution on the Q3 call — this is the biggest untested lever in the multi-year story.

Storage rental organic growth trajectory. With Global RIM Storage Rental decelerating from +8.7% to +6.6% YoY reported, watch whether the organic storage rental print in Q3 transcript disclosure holds above 10% — a further step down would suggest the Q1 acceleration was a peak, not a new baseline.

Sources

Iron Mountain Q2 2026 Supplemental Financial Information (SEC EDGAR): https://www.sec.gov/Archives/edgar/data/1020569/000102056926000068/q22026srpfinal.htm

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