Key Highlights

  • Revenue rose 13.5% to $2.0 billion on a reported basis and 12.8% on an organic basis.
  • AFFO reached $458 million, or $1.53 per share, up 17% from a year earlier.
  • Data center leasing totaled 102 megawatts in the third quarter and 137 megawatts year to date.
  • The company raised its full-year 2026 guidance and increased its quarterly Dividend by 15%.

Iron Mountain (NYSE:IRM), a global provider of information management and Data Center services, reported third-quarter 2026 results on November 5, 2026. Revenue, adjusted EBITDA and adjusted funds from operations all increased from the prior-year quarter, and the company raised its full-year 2026 guidance. The results reflect growth in the company's data center, digital and asset lifecycle management businesses, which the release says collectively grew more than 30% year over year in the quarter.

The gap of about 70 basis points between reported and organic Revenue growth is the portion attributed to acquisitions and currency. Organic growth of 12.8% is therefore the more useful measure for judging the momentum of the existing business, while the reported figure captures the full effect of the company's activity.

Revenue Growth Across Business Lines

Third-quarter revenue reached $2.0 billion, an increase of 13.5% on a reported basis and 12.8% on an organic basis. The gap between the two figures reflects the contribution of acquisitions and currency effects, with the organic measure providing a clearer view of the core business. The company described the quarter as a record for third-quarter revenue.

The company's growth businesses of data center, digital and asset lifecycle management grew more than 30% collectively. Because these businesses are growing faster than the company's traditional information management operations, their rising share of total revenue is likely to shape the company's growth profile in coming periods.

Megawatts leased is a forward-looking measure, because leased capacity typically moves into revenue as facilities are delivered and customers begin paying. The release does not quantify how much of the 137 megawatts year to date has already begun generating revenue, which means readers should treat the leasing totals as an indicator of future revenue rather than a direct measure of current income.

Data Center Leasing and Capacity

Iron Mountain leased 102 megawatts of data center capacity during the third quarter, bringing its year-to-date total to 137 megawatts. Data center leasing is one of the most closely watched measures for the company, because capacity leased today generates revenue over the life of the lease. The release does not disclose the average contract length or pricing for the leases.

The year-to-date figure implies that the first two quarters of 2026 accounted for 35 megawatts of leasing, so the third quarter represented the larger share of the year's activity. Readers tracking the pace of leasing can compare the quarterly and year-to-date figures to judge whether the third-quarter activity continued the earlier trend.

Net income rose by about $43 million year over year, roughly half the increase in adjusted EBITDA, which reflects the effect of the items the company excludes from its adjusted measure. Readers comparing these figures should consult the reconciliation to understand the difference.

Adjusted EBITDA, AFFO and Earnings

Net income for the quarter was $129 million, up from $86 million a year earlier. Adjusted EBITDA reached $748 million, an increase of 13.3%, and the adjusted EBITDA Margin was 37.6%, up nearly 200 basis points from the prior quarter. Adjusted funds from operations, a key Cash Flow measure for real estate Investment trusts, reached $458 million, or $1.53 per share, up 17% from the prior year.

The 17% rise in AFFO per share exceeded the growth rate of revenue. That relationship suggests that cash Earnings grew faster than the Top Line during the quarter, though the release does not provide the full reconciliation between Net Income and AFFO in the highlights.

The guidance implies a steady rate of growth across revenue, adjusted EBITDA and AFFO, with the per-share AFFO measure rising by roughly 15% at the midpoint. The company's fourth-quarter projections, including AFFO of about $473 million, show the expected quarterly contribution as the year ends.

Raised Guidance and Dividend Increase

Iron Mountain raised its full-year 2026 guidance. The company now expects total revenue of $7.950 billion to $8.020 billion, adjusted EBITDA of $2.948 billion to $2.978 billion, AFFO of $1.780 billion to $1.800 billion and AFFO per share of $5.94 to $6.00. At the midpoint, the guidance implies growth of roughly 15% to 16% over the prior year across these measures.

The company also increased its quarterly Dividend per share by 15%, which the release connects to the continued growth in AFFO. For the fourth quarter, the company projects revenue of about $2.03 billion, adjusted EBITDA of about $780 million and AFFO per share of about $1.57.

Outlook

Iron Mountain's third-quarter report combines double-digit revenue and cash flow growth, a rising data center leasing total and a higher dividend. The company's guidance and leasing activity will provide the main reference points for judging how the data center business continues to develop in upcoming quarters.