Iron Mountain Incorporated (NYSE:IRM) delivered fourth-quarter results that significantly surpassed analyst expectations, capping off a year of record financial performance. The information management and data center specialist reported robust growth across its business segments, though the initial market reaction in pre-market trading was slightly negative.
Earnings and Revenue Beat
The company’s performance for the final quarter of 2025 was notably strong against Wall Street forecasts.
- Adjusted Earnings Per Share (EPS): Reported at $1.44, dramatically exceeding the analyst consensus estimate of $0.59.
- Revenue: Came in at $1.84 billion, topping the estimated $1.82 billion.
This double beat was driven by substantial growth in both of Iron Mountain's core revenue streams. Storage rental revenue increased 13% year-over-year to $1.06 billion, while service revenue saw an even stronger jump of 22% to $782 million. For the full year 2025, total revenue reached $6.9 billion, a 12% increase.
Market Reaction and Performance Context
Despite the clear earnings and revenue beats, Iron Mountain's stock was down approximately 0.27% in pre-market trading following the report. This muted reaction may reflect a "sell the news" dynamic after a period of strong performance, as the stock has shown positive momentum in recent weeks:
- Up 11.27% over the past week
- Up 8.65% over the past two weeks
- Up 8.78% over the past month
The slight pre-market dip suggests investors may have already priced in strong results, or are weighing the company's increased capital expenditures and debt levels against the impressive profit growth.
Key Highlights from the Report
President and CEO William L. Meaney characterized the quarter as a "record performance," concluding the company's fifth consecutive year of all-time highs for Revenue, Adjusted EBITDA, and Adjusted Funds From Operations (AFFO). Key financial metrics showed healthy expansion:
- Adjusted EBITDA: Grew 17% in Q4 to $705 million, with a steady margin of 38.3%.
- AFFO per Share: Increased 16% to $1.44 for the quarter and 14% to $5.17 for the full year.
- Dividend: The board declared a quarterly cash dividend of $0.864 per share, payable in April 2026.
Management highlighted strong data center leasing activity and momentum entering 2026, underpinned by 400 megawatts of new capacity expected to come online over the next 24 months.
Forward Guidance vs. Analyst Estimates
Iron Mountain provided optimistic guidance for 2026, which aligns closely with or exceeds current analyst projections.
- Full-Year 2026 Revenue Guidance: $7.625 - $7.775 billion. The midpoint of ~$7.7 billion is essentially in line with the analyst sales estimate of $7.672 billion.
- Full-Year 2026 AFFO per Share Guidance: $5.69 - $5.79. The midpoint of ~$5.74 represents an 11% year-over-year increase and appears to be above the current analyst revenue growth expectations embedded in estimates.
- Q1 2026 Outlook: The company expects revenue of approximately $1.855 billion and AFFO per share of about $1.39, both representing roughly 16-19% year-over-year growth and comparing favorably to analyst estimates for the quarter.
The guidance underscores management's confidence in continued double-digit growth, fueled by its expanding data center business and stable core storage operations.
Conclusion
Iron Mountain's fourth-quarter report demonstrates powerful execution, with earnings far outpacing expectations. The company is successfully navigating its transition, showing that its legacy physical records storage business maintains solid growth while its data center and service segments accelerate. The slightly negative pre-market move appears disconnected from the fundamental strength displayed in the report and the bullish outlook for 2026. Investors will now focus on the company's ability to deploy its significant planned data center capacity and manage its leverage while delivering on its guidance.
For a detailed look at Iron Mountain’s historical earnings and future analyst estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an endorsement of any investment strategy.
