10-Q · April 30, 2026
Iron Mountain's Q1 2026 results highlighted robust revenue growth with total revenue at $1.94 billion, representing a year-over-year increase of 21.6%. EPS reported at $0.60 showed a significant 800.6% increase compared…
Earnings analysis · 10-Q
IRM earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Iron Mountain delivered strong operating growth in Q3, with revenue up 13.5% year over year to $1.991 billion, operating margin improving to 20.6%, and data-center revenue rising 34.0%. However, negative free cash flow…
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Iron Mountain delivered strong operating growth in Q3, with revenue up 13.5% year over year to $1.991 billion, operating margin improving to 20.6%, and data-center revenue rising 34.0%. However, negative free cash flow of approximately $520.6 million on $1.724 billion of nine-month capex, $18.096 billion of debt and higher interest expense remain material constraints. Reported diluted EPS of $0.41 improved year over year but remained well below the $1.35 consensus estimate, resulting in a mixed overall quarter.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.41
What stood out
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Strong year-over-year revenue growth
Q3 revenue increased 13.5% year over year to $1,990.6 million, led by storage rental revenue of $1,149.5 million, up 11.3%, and service revenue of $841.1 million, up 16.6%. Revenue was approximately 1.9% below Q2's $2.03 billion.
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Operating leverage improved
Operating income rose 33.0% year over year to $410.6 million, implying a 20.6% operating margin versus 17.8% in Q3 2025 and 19.0% in Q2 2026. Adjusted EBITDA increased 13.3% to $748.0 million, with a 37.6% margin unchanged year over year.
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Data centers remained growth engine
Global Data Center Business revenue grew 34.0% to $273.6 million, while segment Adjusted EBITDA increased to $154.0 million from $107.4 million and margin expanded 370 basis points to 56.3%. Management cited lease commencements, improved pricing and increased customer power usage.
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Core and ALM businesses expanded
Global RIM revenue increased 7.0% to $1,433.1 million, including storage rental growth of 5.4% and service growth of 9.6%. Corporate and Other revenue increased 34.5% to $283.9 million, and its Adjusted EBITDA loss narrowed by $9.4 million to $36.0 million.
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Cash generation improved before capex
Operating cash flow increased $363.6 million year over year to $1,203.6 million, but cash capital spending was $1,724.2 million, producing negative free cash flow of approximately $520.6 million. Capital spending was equivalent to 86.6% of Q3 revenue on a nine-month cash basis.
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GAAP earnings improved
Reported diluted EPS was $0.41, up from $0.28 in Q3 2025 and $0.34 in Q2 2026, while adjusted EPS was $0.64. Net income increased 49.4% year over year to $128.9 million, despite net interest expense rising to $216.5 million in the quarter.
What to watch
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High leverage and rising interest burden
Total debt was $18.096 billion at September 30, 2026, including $1.233 billion of current maturities; net interest expense increased $54.2 million year over year to $663.8 million for the first nine months. The weighted average interest rate was 5.7%, up from 5.6%.
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Heavy data-center capital requirements
Nine-month cash capital spending was $1,724.2 million against operating cash flow of $1,203.6 million, resulting in negative free cash flow of approximately $520.6 million. Management expects full-year 2026 capital expenditures of approximately $2,200.0 million, including $2,050.0 million of growth investment.
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Data-center execution and power risk
Global Data Center facilities expenses increased with higher utilities costs, while management identified service interruptions, equipment damage and power costs as risks to data-center operations. The segment's Q3 service revenue declined 45.5% year over year to $1.5 million, despite total segment revenue increasing 34.0%.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance. Management expects continued total revenue and Adjusted EBITDA growth in 2026 and expects approximately $2.200 billion of 2026 capital expenditures, including $2.050 billion of growth investment and $150.0 million of recurring capital expenditures. Full-year revenue, Adjusted EBITDA and AFFO guidance was discussed in the November 5, 2026 earnings release rather than quantified in the provided 10-Q text.
Earlier filings 4
10-K · February 12, 2026
Iron Mountain describes a strategy of cross-selling end-to-end records, digital, data center and ALM solutions to a diversified base of >240,000 customers across 61 countries, leveraging scale and security. The company…
10-Q · August 6, 2025
Iron Mountain's Q2 2025 results show a significant 11.6% increase in total revenue year-over-year, against a backdrop of net losses attributed to higher interest and operational costs. The company's EPS fell sharply to…
10-Q · May 1, 2025
Iron Mountain reported Q1 revenues of $1,592,529 (in thousands), up 7.8% year-over-year, with Adjusted EBITDA rising to $579,906 (in thousands) (+11.8%). GAAP diluted EPS fell to $0.05 from $0.25 a year ago and net…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.