Organic Storage Rental Growth Accelerates
Organic storage rental revenue grew 11.8% year-to-date, with the Global Data Center segment leading at 40.2% organic growth, driven by lease commencements and improved pricing.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Iron Mountain's second quarter of fiscal 2026 was defined by accelerating organic storage rental growth, particularly in its Global Data Center segment, which management attributed to lease commencements and improved pricing. Organic storage rental revenue grew 11.8% year-to-date, while data center organic revenue surged 41.4%, fueling the company's return to profitability after a prior-year loss. However, revenue mix shifts toward lower-margin product sales in the asset lifecycle management business pressured overall margins, with Adjusted EBITDA margin declining 40 basis points year-to-date. The period also saw elevated capital expenditures for data center expansion, resulting in negative free cash flow.
Revenue
$2.03B
+18.52% YoY
EPS (Diluted)
$0.34
+326.67% YoY
Operating Income
$373.53M
+43.72% YoY
Source: SEC XBRL
Iron Mountain (IRM) reported Q2 FY2026 revenue of $2.03B, up 18.5% year over year. Operating margin was 18.4%, up 3.2 points from 15.2% a year earlier. IRM's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 0.60 | 0.52 | Beat +15.3% |
| Dec 2025 | 0.61 | 0.59 | Beat +3.1% |
| Sep 2025 | 0.54 | 0.53 | Beat +1.5% |
| Jun 2025 | 0.48 | 0.51 | Miss -5.0% |
3 reported segments · SEC XBRL
Segment revenue totals $2.03B, which is the $2.03B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
Organic storage rental revenue grew 11.8% year-to-date, with the Global Data Center segment leading at 40.2% organic growth, driven by lease commencements and improved pricing.
Source: 10-Q Item 2 MD&A
Total Adjusted EBITDA increased 18.8% year-to-date to $1,434.96 million, though the margin decreased 40 basis points due to revenue mix changes, including growth in lower-margin ALM product sales.
Source: 10-Q Item 2 MD&A
Management highlighted that the One Big Beautiful Bill Act increased the REIT taxable subsidiary asset limit to 25%, and the OECD Pillar Two SbS Safe Harbor could exempt the company from certain top-up taxes.
Source: 10-Q Item 2 MD&A
Capital expenditures remained elevated at $1,106.2 million for the first half, primarily for data center investments, exceeding operating cash flow and resulting in negative free cash flow.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Iron Mountain's long-term debt stands at $17.35 billion with negative stockholders' equity of -$1.28 billion, and interest expense increased 11.9% year-to-date, heightening refinancing and interest rate risks.
Source: 10-Q Balance Sheet (XBRL)
Capital expenditures of $1.1 billion in the first half exceeded operating cash flow, resulting in negative free cash flow and reliance on external financing to fund data center expansion.
Source: 10-Q Cash Flow (XBRL)
The Global RIM Business segment contributes approximately 70% of total segment revenue, exposing the company to secular declines in paper-based storage demand.
Source: 10-Q Income Statement (XBRL)
Significant intercompany balances and international operations result in large foreign currency transaction gains or losses, as evidenced by a $101 million swing in FX gains/losses year-over-year for the first half.
Source: 10-Q Item 2 MD&A
As a REIT, Iron Mountain must comply with complex tax rules, and proposed Pillar Two taxes could increase its tax burden if safe harbors are not adopted; the company's REIT status is critical to its financial strategy.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.03 $B | 1.71 $B | +18.52% |
Operating Income $M | 373.53 $M | 259.90 $M | +43.72% |
EPS (Basic) $ | 0.34 $ | -0.15 $ | +326.67% |
EPS (Diluted) $ | 0.34 $ | -0.15 $ | +326.67% |
SG&A Expense $M | 402.34 $M | 390.46 $M | +3.04% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
IRM delivered strong Q1 FY2026 results with revenue surging 21.6% YoY to $1.94B and operating income jumping 55.4% to $395M, though the company carries significant leverage with $17.1B in long-term debt and negative stockholders' equity.
Iron Mountain (IRM) delivered strong FY2025 revenue growth of 12.2% to $6.90B, driven by continued expansion in data center and records management services, though EPS declined 19.7% to $0.49 and long-term debt surged 19.8% to $16.43B as the REIT aggressively invested in growth infrastructure.