Iron Mountain Incorporated (NYSE: IRM) declared a quarterly dividend of $0.993 per share on November 5, 2026, a 15 percent increase from $0.864. The raise landed the same day the storage and data-center company reported record third-quarter revenue and lifted its full-year guidance.
The setup
Third-quarter revenue reached $1.991 billion, up 13.5 percent year over year. Storage rental revenue grew 11.2 percent, and service revenue grew 16.3 percent. Adjusted EBITDA rose 13.3 percent to $748 million at a 37.6 percent margin.
Adjusted funds from operations came in at $458.4 million, or $1.53 per share, up 17 percent from a year ago and ahead of the $1.47 consensus estimate. Chief Executive William Meaney framed the dividend increase as part of the company’s commitment to shareholder returns as it expands its digital infrastructure business.
Key numbers
| Metric | Q3 2026 | Change |
|---|---|---|
| Total revenue | $1.991 billion | +13.5% |
| Storage rental revenue | Growing | +11.2% |
| Service revenue | Growing | +16.3% |
| Adjusted EBITDA | $748 million | +13.3% |
| AFFO | $458.4 million ($1.53 per share) | +17% |
| Data center revenue | $274 million | +34% |
Management raised full-year 2026 guidance across the board.
| FY 2026 guidance | Range |
|---|---|
| Revenue | $7.95 billion to $8.02 billion |
| Adjusted EBITDA | $2.948 billion to $2.978 billion |
| AFFO | $1.780 billion to $1.800 billion |
| AFFO per share | $5.94 to $6.00 |
The dividend and what it pays
The new quarterly dividend annualizes to $3.97 per share, a yield near 3.7 percent at recent prices around $105.90. Payment goes out on January 6, 2027, to shareholders of record on December 15, 2026. Iron Mountain has now raised its payout five times in the past four years. The raise is worth about $52 per year on every 100 shares held.
The dividend consumes roughly 66 percent of the midpoint of this year’s AFFO guidance. That coverage leaves less cushion than most dividend-growth stocks, which is the price of a 15 percent raise funded by a growth pipeline.
| Per $100,000 invested | Value |
|---|---|
| Shares at $105.90 | About 944 |
| Annual dividend income | About $3,750 |
Data center growth engine
Data center revenue grew 34 percent to $274 million in the quarter. Asset lifecycle management revenue jumped 43 percent. Iron Mountain signed 102 megawatts of new data center leases in Q3 and 137 megawatts year to date, feeding the AI-driven demand Meaney highlighted alongside the dividend announcement.
What to watch
- Guidance quality. Some analysts noted implied fourth-quarter revenue still fell short of the most optimistic forecasts.
- Coverage. A payout near two-thirds of AFFO leaves little room for a guidance miss.
- Debt. Years of expansion keep the balance sheet loaded, so rising interest costs remain a watch item.
- Record date. Shares must be held through December 15 to collect the January 6 payment.
Bottom line
Iron Mountain is paying for growth with a faster-rising dividend. For income investors, the deal works if data center demand keeps compounding. The 3.7 percent yield, double-digit AFFO growth, and fifth raise in four years argue it is working so far. Buying before the December 15 record date locks in the higher January payment.
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