Iron Mountain Grows Revenue 17% But EPS Falls 14.7%

Iron Mountain (IRM) reported fiscal 2025 Q4 earnings on Feb 12, 2026, delivering a 17% year-over-year revenue increase to $1.84 billion, slightly surpassing expectations. The company’s guidance for 2026 includes 12% revenue growth at the midpoint, reflecting confidence in its strategic momentum despite a 14.7% decline in EPS.

Revenue

Iron Mountain’s total revenue surged 17% to $1.84 billion in Q4 2025, driven by robust performance across its Growth Businesses segment. Data Center revenue soared 39%, while Asset Lifecycle Management (ALM) posted 56% organic growth, and Digital Solutions expanded at double-digit rates. These high-growth segments now account for 28% of total revenue, up from 15% in 2021.

Earnings/Net Income

Earnings per share (EPS) declined 14.7% to $0.30 in Q4 2025, with net income falling 11.9% to $93.12 million. However, the company has maintained profitability for over two decades in this quarter, underscoring its operational resilience despite margin pressures.

Price Action

Iron Mountain’s stock rose 2.31% in the latest trading day, 19.17% for the week, and 18.44% month-to-date, reflecting investor optimism about its growth trajectory.

Post-Earnings Price Action Review

A strategy of buying IRM shares after a revenue decline quarter-over-quarter on the earnings release date and holding for 30 days generated a 125.49% return over three years, outperforming the 55.21% benchmark. This approach yielded a 70.29% excess return, with a 22.72% compound annual growth rate and a maximum drawdown of 41.32%, demonstrating strong risk-adjusted performance.

CEO Commentary

CEO William Meaney highlighted Q4 2025 as a record quarter, with 17% growth in revenue, adjusted EBITDA, and AFFO. He emphasized momentum in data centers, ALM, and digital solutions, positioning Iron Mountain to capitalize on a $170 billion total addressable market. With 400 megawatts of land bank capacity and AI-driven digital expansion, the company aims to sustain double-digit growth through 2026.

Guidance

CFO Barry Hytinen outlined 2026 guidance: revenue of $7.625–$7.775 billion (12% growth at midpoint), adjusted EBITDA of $2.875–$2.925 billion (13% growth), and AFFO of $1.705–$1.735 billion (12% growth). Data Center revenue is projected to exceed $1 billion (+25% YoY), while ALM revenue targets $850 million (+35% YoY).

Additional News

Iron Mountain announced the launch of an AI-powered digital solutions platform, expanding its offerings in data management. The company also celebrated its 75th anniversary, marking a milestone in its 75-year history of innovation in storage and information services. Leadership reaffirmed its commitment to leveraging cross-selling opportunities across its 240,000+ customer base and investing in high-growth markets.