Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 7 of last 7 quarters
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Iron Mountain's strong data center leasing momentum, including a 51 MW hyperscale lease in Mumbai and full leasing of London 3, underscores the accelerating demand for AI inference capacity globally. The company's 325 MW of leasable capacity over the next 24 months, coupled with its ALM decommissioning business (which benefits from data center refresh cycles), positions it as a key enabler of the AI infrastructure lifecycle. The raised guidance and record results signal continued robust investment in AI-related infrastructure.
Iron Mountain delivered record Q2 results with revenue of $2.03B (+19% YoY), adjusted EBITDA of $727M (+16%), and AFFO per share of $1.44 (+16%). Data Center revenue grew 39% to $263M, ALM revenue grew 88% to $288M (including $30M of accelerated hyperscale decommissioning projects), and Global RIM revenue grew 8% to $1.4B. The company leased 13 MW in Q2 and 75 MW in July, including a 51 MW hyperscale lease in Mumbai and a 25 MW lease fully leasing London 3. Management also closed the Groupe ATF acquisition in France/Belgium and issued a $1.5B bond with an investment-grade covenant package.
Management raised full-year 2026 guidance across all metrics: revenue now $7.94B–$8.01B (+16% at midpoint), adjusted EBITDA $2.945B–$2.975B (+15%), AFFO $1.76B–$1.78B ($5.87–$5.93 per share, +14%). They expect to meaningfully exceed the original 100 MW data center leasing target, with 325 MW of leasable capacity energizing over the next 24 months and strong pipeline in Northern Virginia, Europe, and India. ALM full-year revenue is now expected to approach $1 billion, driven by continued enterprise growth and the recent Groupe ATF acquisition. Management emphasized sustained double-digit top and bottom line growth, with growth businesses now over 30% of revenue and a focus on margin expansion through cost discipline and operating leverage.
“We leased 13 megawatts in the second quarter and another 75 megawatts in July, bringing our year-to-date leasing to 110 megawatts.”
on Data Center Leasing
“Our Data Center, ALM and Digital businesses collectively grew more than 50% in the quarter or 14 percentage points on a consolidated basis.”
on Growth Businesses
“We now expect full year revenue to approach $1 billion.”
on ALM Outlook
Can you talk about the pipeline beyond July for data center leasing, and what are some top-of-mind campuses like Richmond?
We have 325 MW of leasable capacity to energize over the next 24 months, with strong pipeline including Richmond, Europe, and India. Leasing is lumpy but we feel good about momentum and expect to meaningfully exceed our original 100 MW target.
How are discussions with hyperscalers progressing and what is your latest leasing target for 2026?
We expect to meaningfully exceed the original 100 MW target. Pipeline is strong across 325 MW of capacity, driven by inference buildouts and expansion in India. We are shifting to communicate energization schedule rather than annual leasing guidance.
Can you give details on the Groupe ATF acquisition, synergies, and cross-sell opportunity?
Groupe ATF closed August 1, adds ~$7M revenue in H2, low-20s EBITDA margin, acquired at 5-7x EBITDA with synergies expected below 5x. It strengthens our ALM platform in France and Belgium, enabling cross-selling to existing customers.