Iron Mountain shares fall 7.7% despite Q3 profit beat

Shares fell 7.7% at 10:05 a.m. ET, from a $118.66 close.

Iron Mountain (IRM) reported third-quarter adjusted earnings of 64 cents per share and raised its full-year 2026 forecast.

Revenue of $1.99 billion was a record for a third quarter, up 13.5% from a year earlier.

Here's how the company did:

• Adjusted EPS: 64 cents vs. 54 cents a year earlier, against 62 cents expected
• Revenue: $1.99 billion vs. $1.75 billion a year earlier, against $2.01 billion expected
• Net income: $129 million vs. $86 million a year earlier
• AFFO per share: $1.53 vs. $1.32 a year earlier

Adjusted EBITDA rose 13.3% to $748 million. AFFO rose 16.6% to $458 million.

2026 guidance

For the full year, it now expects revenue of $7.95 billion to $8.02 billion, adjusted EBITDA of $2.95 billion to $2.98 billion, AFFO of $1.78 billion to $1.80 billion and AFFO per share of $5.94 to $6.00.

For the fourth quarter, it expects revenue of about $2.03 billion, adjusted EBITDA of about $780 million, AFFO of about $473 million and AFFO per share of about $1.57.

Dividend increase

The board declared a 99.3-cent quarterly dividend for the fourth quarter, up 15%. It is payable Jan. 6, 2027, to shareholders of record on Dec. 15, 2026.

Segment results

Global RIM revenue was $1.43 billion, up 7%. Global Data Center revenue was $274 million, up 34% from $204 million a year earlier. Corporate and Other revenue was $284 million, up 34% from $211 million, and includes asset lifecycle management, where revenue rose 43%.

Data center leasing totaled 102 megawatts in the third quarter and 137 megawatts year to date.

Net leverage stood at 4.8 times, within the company's target range of 4.5 to 5.5 times.