Iron Mountain Incorporated

IRM · NYSE · USD

Analysis

Last 4 earnings calls · through Q2 FY2026

Iron Mountain is no longer a records-storage landlord that happens to own some technology. Data centers, IT asset resale and digital services now supply most of its growth, and guidance has gone up twice this year because of them. How much of the data center backlog converts before 2028?

  • The growth businesses now set how fast the whole company grows.

    Data center, digital and ALM — the business that resells customers' old IT gear — grew more than 50% in Q2 FY2026 and are now about 35% of revenue. Records storage underneath still grows mid-single digits and pays for the build.

  • ALM's headline growth is partly a memory-price cycle.

    Q2 FY2026 organic growth of 82% included about $30 million of hyperscale work pulled forward, and memory prices move component by component and can turn. Enterprise ALM is the repeatable half, growing 25% or more regardless of prices. How much of ALM revenue is enterprise versus hyperscale decommissioning?

  • The company spends the money years before the leases pay.

    Capital spending has risen every year since 2021, to about $2.3 billion in 2025, mostly data centers built to pre-signed leases. Power is billed through at no profit, and the business still spends more cash each year than it takes in. Why is free cash flow negative while AFFO keeps setting records?

Bullish
  • Data center pre-leasing
    The bull case is that most data center space is leased before it is built, so new capacity becomes revenue without waiting on customers to appear later.
  • Cross-selling into existing accounts
    Iron Mountain already stores records for most large companies, and selling data center, digital and asset disposal into those accounts drives most incremental growth.
  • Recurring storage cash generation
    The legacy records business grows slowly but produces steady, high-margin cash that funds the faster-growing segments and the dividend.
Bearish
  • Capital-heavy data center buildout
    The bear case is that growth now requires very large upfront spending on data centers, keeping free cash flow negative for as long as construction runs.
  • Memory prices lift ALM revenue
    Asset disposal revenue rises and falls with used memory and component prices, so a large part of recent growth may not repeat at the same rate.
  • Mix shifts toward lower margins
    As services and data center power pass-through take a bigger share of revenue, gross margin drifts lower even though operating profit keeps growing.
See the full bull & bear case
PoliticiansInstitutionsInsiders
PoliticianTransactionAmountTradedFiled
Donald Trump
Republican · Executive
Purchase≥$15KMar 23May 13
Donald Trump
Republican · Executive
Purchase≥$1KMar 17May 13
Donald Trump
Republican · Executive
Sale≥$15KJan 12May 13
Markwayne Mullin
Republican · Senate · OK
Sale (Full)≥$1KFeb 4Mar 2
Ro Khanna
Democratic · House · CA-17
Purchase≥$1KJan 23Feb 6

Congressional trading data provided by QuiverQuant

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Product segmentsGeography
FY2025 · USD

How Iron Mountain Incorporated turned $6.9B of revenue into $1.2B of operating income.

Revenue
Global Records and Information Management Business$5.3B▲ 6.27% YoY
Global Data Center Business$803.4M▲ 29.58% YoY
Total revenue$6.9B
Gross profit$3.8B55.4%
Operating income$1.2B16.9%
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