Iron Mountain reported another record quarter, driven by explosive growth in ALM (88% YoY) and data center leasing, leading to a raised full-year guidance. Management highlighted a significant July that saw 75 MW of new leases, including a major hyperscaler deal in India, and announced the acquisition of Group ATF to bolster its European ALM footprint. Raised FY2026 guidance for revenue, EBITDA, and AFFO due to strong Q2 performance and improved outlook.
Iron Mountain reported another record quarter, driven by explosive growth in ALM (88% YoY) and data center leasing, leading to a raised full-year guidance. Management highlighted a significant July that saw 75 MW of new leases, including a major hyperscaler deal in India, and announced the acquisition of Group ATF to bolster its European ALM footprint. Raised FY2026 guidance for revenue, EBITDA, and AFFO due to strong Q2 performance and improved outlook.
Data center leasing visibility is strong with 110 MW signed year-to-date, including a 51 MW lease by a major hyperscaler in India, and management expects to meaningfully exceed the original 100 MW target. ALM demand is robust with enterprise and hyperscale decommissioning…
Data center leasing visibility is strong with 110 MW signed year-to-date, including a 51 MW lease by a major hyperscaler in India, and management expects to meaningfully exceed the original 100 MW target. ALM demand is robust with enterprise and hyperscale decommissioning…
Guidance · revenue to $7.975B
Management highlighted strong momentum in DXP, their AI-powered agentic solutions platform, which is expanding and making the digital business more recurring. They also noted recognition from Forrester for document mining and analytics, and are leveraging AI to drive…
Management highlighted strong momentum in DXP, their AI-powered agentic solutions platform, which is expanding and making the digital business more recurring. They also noted recognition from Forrester for document mining and analytics, and are leveraging AI to drive operational efficiencies across support functions.
Data center leasing visibility is strong with 110 MW signed year-to-date, including a 51 MW lease by a major hyperscaler in India, and management expects to meaningfully exceed the original 100 MW target. ALM demand is robust with enterprise and hyperscale decommissioning channels growing over 60% and 100% respectively, and the digital business continues to win multi-year contracts.
Second quarter growth capex was $553 million, with investments directed toward high-return opportunities fueling double-digit growth, including data center capacity and ALM expansion. The company issued a $1.5 billion bond to support growth initiatives.
Management expressed strong confidence in their growth trajectory, citing record results, raised guidance, and a robust pipeline, while acknowledging lumpiness in data center leasing.
Power availability in key markets like Northern Virginia can constrain data center expansion and leasing timelines.
“since a good amount of that additional megawatts is in Northern Virginia, which is, as you know, the number one market in the world.”
“the hyperscale data center decommissioning segment is expected to double over the next four or five years in terms of the TAM from three to about six billion of TAM.”
“Memory prices continue to remain elevated as compared to last year. Relative to the first quarter, mix and pricing varied across memory components with some up and some down.”
“in July, a major global hyperscaler leased 51 megawatts in Mumbai as part of a 10-year contract. India is quickly becoming a major hyperscale data center market”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $5.87–$5.93 | $5.90 | RAISED |
| Op margin | FY2026 | $2.945B–$2.975B | $2.96B | RAISED |
| Revenue | FY2026 | $7.94B–$8.01B | $7.975B | RAISED |
| Revenue | FY2026 Q3 | $1.98B | $1.98B | GUIDED |
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2026 Q1 | EPS | FY2026 Q2 | $1.40 | $0.60 | Missed |
| FY2026 Q1 | Revenue | FY2026 Q2 | $1.965B | $2.0291B | Met / beat |
Independent analyst recognition from Forrester validates Iron Mountain's digital strategy and could help win new enterprise deals.
“In Q2, Forrester recognized Iron Mountain as a top provider of document mining and analytics platforms.”
… revenue in line with our expectations of continued double digit organic growth. I am especially pleased with the traction we are seeing in DXP, our AI powered agentic solutions platform. As this platform expands, the recurring nature of our digital business is now more than 45% of our revenue. This naturally helps underpin the long-term growth momentum of the business. I am also proud that we continue to gain recognition by leading analyst firms. In Q2, Forrester recognized Iron Mountain as a top provider of document mining and analytics platforms. Positioning Insight DXP has a top score for a genetic AI functionality, data privacy, validation rules, globalization, and Platform Breath. And lastly, from an operational perspective, we continue to execute very well, driving overall enterprise adjusted EBITDA growth of 16% in the quarter, which was ahead of our expectation. Based on this strong performance and continued momentum in our business, we are pleased to increase our full year financial outlook. I now want to highlight a couple of notable recent recognitions that reinforce our strategic efforts. In June, we achieved portfolio-wide high trust R2 accreditation, which …
Hyperscale data center decommissioning TAM is expected to double from $3B to $6B over the next 4-5 years, driven by the massive buildout of data centers and continuous equipment refresh cycles. — This implies a significant upcoming wave of server and networking equipment retirements, potentially creating a large secondary market for used components and impacting demand for new hardware.
Thank you. I wanted to pull on that thread with ALM. Is your global scale now sufficient so as to unlock MSAs with the largest global multinationals and be able to service them truly globally? The growth has been very impressive, but I'm wondering whether we're at the cusp of that or it's already occurred where you're unlocking large global footprints on a regular basis.
And Toby, I would just add that to put it in perspective on that opportunity, This year, our enterprise ALM business is going to be up north of 50% versus last year, call it a little over $600 million of revenue for the full year. You're talking about the segment of ALM that is very large. This TAM for ALM is $35 plus billion and growing. The enterprise business is 75 or more percent. and we're only like 600 million so we are really just getting started in the business and it's but we've we've grown a lot you know that enterprise business has grown grown about 15 or 20 fold in the last five or six years so very strong growth a lot of growth ahead of us and I'll just also mention that the other piece of the pie on ALM hyperscale data center decommissioning and broader data center decommissioning with corporate clients that is a very meaningful target for us as well. And in fact, the hyperscale data center decommissioning segment is expected to double over the next four or five years in terms of the TAM from three to about six billion of TAM. And that is driven by, of course, the massive growth of data centers over the last few years and the continuous renewal of those, the gear inside those data centers. So we feel really well are positioned in ALM.
Memory prices continue to remain elevated compared to last year, though mix and pricing varied across components in Q2. — Confirms sustained pricing power for memory makers, indicating strong demand in AI infrastructure that is expected to persist through 2026.
… partially by $30 million of timing benefit related to a couple large projects that hyperscalers accelerated into the quarter versus their initial schedule. From a profitability perspective, we drove solid improvement in margins reflecting improved operating performance across the business as well as acquisition synergies. Let me now provide additional color on the price environment for memory in our updated outlook for ALM. Memory prices continue to remain elevated as compared to last year. Relative to the first quarter, mix and pricing varied across memory components with some up and some down. In terms of our outlook, we are pleased to once again raise our ALM projection and we now expect full year revenue to approach $1 billion. Thank you for joining us. Thank you for joining us. and the conclusion of our Matterhorn restructuring in 2025, which was $100 million in the first half of 2025 and zero this year. Turning to capital allocation, our focus remains on investing in high return opportunities that drive double digit growth and growing our dividend while maintaining our strong balance sheet. Our board of directors declared our quarterly dividend of 86.4 cents per share to …
Iron Mountain leased 51 MW in Mumbai to a major global hyperscaler in July and sees India as a major growth market, with another 100 MW of future development capacity. — Indicates that major US cloud providers are dramatically expanding their India presence, driving demand for datacenter infrastructure and services in the region.
… contracts, both in the U.S. and on a global basis. We had particularly strong bookings performance in Europe this quarter. Now let me highlight some of our data center wins. We signed a 25 megawatt lease in July, fully leasing our London 3 asset. This came on the heels of the 10 megawatt lease we signed in Amsterdam. Both of these leases are a direct result of the large and expanding pipeline we have around AI inference. Also in July, a major global hyperscaler leased 51 megawatts in Mumbai as part of a 10-year contract. India is quickly becoming a major hyperscale data center market, and we are well positioned with another 100 megawatts of future development capacity. Turning to our asset lifecycle management business, We continue to successfully scale our global capabilities, broaden our customer base through cross-selling initiatives, and deepen our penetration among existing customers. In the second quarter, we secured a multi-year global ALM program with a long-standing business services customer to manage their IT assets annually across North America, EMEA, and APAC. This is another example of a customer standardizing with Iron Mountain across the world, and builds on …