Iron Mountain Incorporated (IRM) shares slipped 3.98% on Thursday, halting a six-session winning streak and retreating from the 52-week high set the previous day. The stock closed at $126.81, down 5.43% from its May 6 peak of $134.09, as investors reassessed the company's rapid ascent amid its transformation into a digital-infrastructure powerhouse.
Cohen & Steers Stake Disclosure
On May 7, Cohen & Steers, Inc. filed an amended Schedule 13G with the SEC, revealing a 4.89% passive stake in Iron Mountain, representing 14,555,629 shares. The filing, dated April 30 and signed on May 7, clarifies the position is held for investment purposes only, not for control. While the disclosure doesn't directly link to Thursday's sell-off, it adds a layer of transparency to the stock's recent volatility.
Earnings Momentum and Raised Guidance
Iron Mountain's underlying business fundamentals remain robust. The company reported first-quarter revenue of $1.94 billion, a 21.6% year-over-year increase, and net income surged to $149 million from $16 million a year earlier. Adjusted EBITDA reached $708 million, up 22.1%. The company lifted its full-year 2026 guidance, projecting revenue between $7.825 billion and $7.925 billion, adjusted EBITDA of $2.925 billion to $2.965 billion, and adjusted funds from operations (AFFO) of $5.79 to $5.86 per share—a key metric for real estate investment trusts.
CEO William L. Meaney highlighted a strong start to data center leasing, with 32 megawatts signed through April and 400 megawatts of capacity expected to be energized within 24 months. Global Data Center Business revenue jumped to $254.7 million from $173.2 million, while the Global RIM division contributed $1.40 billion. Asset lifecycle management (ALM) also showed growth.
Capital Expenditure and Risk Factors
Iron Mountain's ambitious expansion comes with significant capital requirements. The company spent $518 million on capital expenditures in the first quarter and expects total capex of approximately $2.2 billion for 2026, primarily for growth. CFO Barry Hytinen noted on the earnings call that the company is pleased with the mix and pricing of data center leases. However, risks remain, including funding challenges, debt costs, power availability, and execution risks.
Thursday's decline contrasted with peers: Prologis fell 0.43%, Digital Realty Trust dropped 2.45%, while IBM gained 2.47%. The S&P 500 closed down 0.38%, and the Dow Jones fell 0.63%.
Dividend and Outlook
Iron Mountain declared a quarterly dividend of 86.4 cents per share, payable July 3 to shareholders of record as of June 15. The company's challenge now is to convert its data center and ALM momentum into reliable cash flow while managing expansion costs. Thursday's pullback may signal that the stock, after its recent run, has limited room for error.
