Iron Mountain (IRM) is rallying after posting a major first-quarter 2026 profit beat and lifting its full-year forecast, with investors re-pricing the company more like an AI-exposed data center landlord than a mature records storage business. The move follows results released before the market opened on April 30, 2026, alongside updated guidance and commentary pointing to strong hyperscale demand.

Adjusted funds from operations (AFFO) came in at $1.43 per share for Q1 2026, far above the $0.52 consensus shown across earnings trackers. The company also raised its full-year 2026 guidance range, increasing the revenue outlook to $7.825–$7.925 billion from $7.625–$7.775 billion previously, reinforcing that the growth ramp is tracking ahead of plan.

Management’s data center narrative is the central catalyst: data center revenue grew 47% in Q1 2026 and the company signed 22 MW of new leases during the quarter. It also disclosed an additional 10 MW lease signed after quarter-end in Amsterdam and reiterated expectations for at least 100 MW of new leasing in 2026, while pointing to a backlog positioned to drive 25%+ data center growth in 2026 and more than $350 million of growth beyond 2026 before incremental leasing.

The durability of the rally will depend on whether leasing momentum holds as new capacity energizes and whether power availability and build timelines stay on track. Investors will also focus on how quickly IRM can convert backlog into revenue, the cadence of new hyperscale deals, and how higher growth investments interact with balance sheet and dividend commitments (the board declared another quarterly dividend of $0.864 per share).