Iron Mountain Incorporated IRM reported first-quarter 2026 adjusted funds from operations (AFFO) per share of $1.43, topping the Zacks Consensus Estimate by 2.88%. The figure grew 22.2% year over year.
The quarter reflected broad-based momentum, led by strong expansion in growth businesses and solid pricing in the core storage franchise. Organic revenue growth was 17.2% year over year, underscoring continued demand and effective revenue management. The company raised its 2026 FFO per share outlook.
Total revenues of $1.94 billion beat the consensus mark by 4.31% and rose 21.6% year over year.
IRM's Revenue Mix Skews to Service Upside
Storage rental revenues increased 15.4% year over year to $1.095 billion. On a constant-currency basis, storage rental revenues rose 12.6%, supported by sustained pricing actions and resilient underlying demand.
Service revenues climbed 30.6% year over year to $841.4 million, with constant-currency growth of 27.6%. The faster service line growth continued to lift total revenue growth, aided by higher activity levels across servicing and solutions-oriented offerings.
Iron Mountain's Segment Results Show Broad Strength
Global RIM revenues rose 11.8% year over year to $1.404 billion, driven by higher storage rental and service revenues. Organic growth for the segment was 8.3% on a constant-currency basis, showing that the core records management engine is still expanding, even as the company scales newer offerings.
The Global Data Center segment delivered a 47.1% revenue increase to $254.7 million, reflecting continued portfolio expansion and favorable leasing dynamics. Corporate and Other revenues increased 69.7% to $277.3 million, with management attributing growth in part to Asset Lifecycle Management strength, which is reported within this segment.
IRM's Data Center Leasing and Portfolio Metrics
Operationally, Iron Mountain ended the quarter with 507.2 leasable megawatts in its operating portfolio and a 97.2% leased rate by megawatts on a total portfolio basis. Stabilized assets were 98.3% leased, highlighting tight utilization as the company brings additional capacity online.
Leasing activity remained healthy. The company signed 21,849 kilowatts of new and expansion leases in the quarter, while churn was just 0.4%. Renewal pricing was favorable, with cash mark-to-market at 12% and GAAP mark-to-market at 14%, indicating continued pricing power at lease rollover.
Iron Mountain's Storage Volume and Pricing Levers
In the storage franchise, total global storage volume reached 745,276 thousand cubic feet at quarter-end. Storage facility capacity utilization improved to 81.4%, and the records management retention rate was 93.3%, reinforcing the stickiness of the long-duration storage base that supports recurring cash flows.
Pricing and productivity measures also showed up in unit economics. Storage revenue per square foot increased to $11.74, while storage NOI per square foot was $9.10. These metrics suggest ongoing benefit from revenue management initiatives, even as the company continues to invest in growth categories.
Iron Mountain's Liquidity Keeps Leverage in Range
Iron Mountain exited the quarter with $250.7 million of cash and cash equivalents, up from $158.5 million at year-end 2025. As of March 31, 2026, the company had net debt of $16.97 billion, up from $16.39 billion as of Dec. 31, 2025, with a weighted average years to maturity of 4.4 years and a weighted average interest rate of 5.4%.
Management maintained its long-term net lease-adjusted leverage ratio at 4.8 in the quarter, within its targeted 4.5-5.5 range, while continuing to fund development activity across the data center platform.
IRM Raises 2026 Outlook and Dividend Update
Reflecting the strong start to the year, Iron Mountain raised full-year 2026 guidance. The company now expects revenues of $7.825-$7.925 billion and adjusted EBITDA of $2.925-$2.965 billion, both implying roughly 14% growth at the midpoint. The Zacks Consensus Estimate for 2026 revenues is pegged at $7.72 billion.
It also lifted AFFO per share guidance to $5.79-$5.86. The Zacks Consensus Estimate is pegged at $5.72, which lies below the guided range.
Shareholder returns remained a priority. On April 30, 2026, the board declared a quarterly cash dividend of $0.864 per share for the second quarter, payable July 3, 2026, to shareholders on record as of June 15, 2026.
IRM’s Zacks Rank
Currently, IRM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Iron Mountain Incorporated Price, Consensus and EPS Surprise
Iron Mountain Incorporated price-consensus-eps-surprise-chart | Iron Mountain Incorporated Quote
Performance of Other REITs
Digital Realty Trust DLR reported first-quarter 2026 core FFO per share of $2.04, up 15.3% from $1.77 a year ago. Results beat the Zacks Consensus Estimate of $1.94, delivering a 5.15% earnings surprise. Results reflected strong leasing activity and healthy commencements from a growing backlog.
Prologis PLD reported first-quarter 2026 core FFO per share of $1.50, surpassing the Zacks Consensus Estimate of $1.48. Results were supported by robust leasing activity.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Prologis, Inc. (PLD): Free Stock Analysis Report
Iron Mountain Incorporated (IRM): Free Stock Analysis Report
Digital Realty Trust, Inc. (DLR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).