Iron Mountain Q2 2026: revenue up 18.5%, net income swings positive
Iron Mountain's second quarter of 2026 was a record on revenue and profit: $2.03 billion of revenue, up 18.5%, and $106.1 million of net income versus a year-ago loss. The catch is cash: free cash flow was negative $38.9 million, because data center construction eats nearly everything the business throws off. Read the quarter as a growth story funded with debt, and judge it on leasing and leverage, not just the headline.
1 · Expected vs. Actual
Free preview belowGAAP earnings per share of $0.34 came in below the $0.56 analyst estimate, but adjusted EPS of $0.60 beat it. The $0.26 gap between the two is mostly stock-based compensation, which added $0.19 per share to the adjusted figure and roughly doubled from $0.09 in the first quarter. GAAP EPS also fell 29.2% from $0.48 in Q1, so the headline number is not a straight line.
Revenue of $2.03 billion rose 18.5% from $1.71 billion a year earlier, and management says 16.8% of that was organic. Service revenue grew 27.4% to $894.5 million while the steadier storage rental line grew 12.3% to $1.13 billion. Cost of revenue rose 27.0%, faster than revenue, so gross margin printed at 52.8% — growth is coming at a price.
Full-year 2026 revenue guidance moved up to $7.94–$8.01 billion from $7.83–$7.93 billion, with AFFO per share of $5.87–$5.93 and Adjusted EBITDA of $2.95–$2.98 billion. At the midpoint that implies about 16% revenue growth and roughly 14% AFFO-per-share growth. The company does not reconcile this guidance to GAAP, so it cannot be checked line by line.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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