Iron Mountain's stock surged 5.19% during intraday trading on Thursday, following the release of its fourth-quarter earnings and optimistic financial guidance for 2026.

The real estate investment trust reported better-than-expected Q4 results, with adjusted EPS of $0.61 beating the $0.59 estimate and revenue of $1.84 billion surpassing the $1.80 billion forecast. More importantly, the company issued strong full-year 2026 guidance, projecting revenue between $7.63 billion and $7.78 billion, above analyst estimates of approximately $7.60 billion.

The upbeat outlook is primarily driven by robust demand for data center infrastructure, as enterprises significantly increase spending on land leases to build facilities supporting artificial intelligence workloads. Iron Mountain, which has evolved from physical record management to digital information handling, is benefiting from this AI-driven boom, with its data center, digital, and ALM businesses growing over 40% in the fourth quarter.