TLDR
- IREN’s Q1 revenue soars 355% to $240M on booming AI Cloud demand.
- $9.7B Microsoft deal cements IREN’s rise as a top AI infrastructure player.
- Net income hits $384M, flipping from a $52M loss last year
- Investors uneasy as IREN ramps up big AI expansion and capex plans.
- IREN targets $3.4B AI Cloud run-rate by 2026 amid rapid GPU scaling.
IREN Limited’s stock(REN) stock fell sharply by 12.37% to close at $66.96 following its Q1 FY26 earnings release.
Record Financial Performance in Q1 FY26
IREN Limited posted record quarterly results, driven by a significant shift toward AI Cloud services. Total revenue surged to $240.3 million, marking a 355% increase from $52.8 million a year earlier. Moreover, the company reported a net income of $384.6 million compared to a loss of $51.7 million last year.
The company’s adjusted EBITDA rose to $91.7 million, up from $2.5 million in the prior year. Reported EBITDA reached $662.7 million, reflecting gains from prepaid forwards and capped calls tied to convertible notes. This marked the strongest profitability quarter in the company’s history, positioning IREN for continued growth momentum.
IREN highlighted a clear improvement in operational efficiency through disciplined execution and rising AI infrastructure demand. The results reinforced its transformation from a mining-focused business to an AI Cloud provider. Despite this, investors reacted cautiously to capital-intensive expansion plans and near-term spending outlook.
Strategic Partnerships and AI Cloud Expansion
The company secured a $9.7 billion contract with Microsoft, marking a major milestone in its AI infrastructure expansion. The deal includes phased deployments at Childress through 2026, with an expected $1.9 billion annualized revenue contribution. It also involves a 20% customer prepayment, reflecting strong confidence in IREN’s data center capabilities.
IREN announced additional multi-year contracts with Together AI, Fluidstack, and Fireworks AI. These partnerships are expected to raise its AI Cloud annualized run rate to over $500 million by the end of Q1 2026. Furthermore, the company is targeting $3.4 billion in AI Cloud annualized run-rate revenue by the end of 2026.
The AI expansion plan includes scaling to 140,000 GPUs across data centers in the U.S. and Canada. This move positions IREN as a major provider of large-scale GPU clusters for AI training and inference. Consequently, the company continues to leverage its renewable-powered facilities to support sustainable AI infrastructure growth.
Project and Financing Outlook
IREN advanced multiple large-scale projects to expand its data center capacity across North America. The British Columbia site’s 160MW GPU transition remains on schedule for completion by the end of 2026. At the Childress campus, the company is accelerating construction of liquid-cooled data centers with enhanced design features.
The Sweetwater Hub, totaling 2GW capacity, continues to progress with two substations expected online between 2026 and 2027. These developments underscore IREN’s long-term goal of leveraging its 3GW grid-connected power portfolio. The projects aim to support high-performance AI workloads with flexible rack densities and scalable architectures.
Financially, IREN reported cash and equivalents of $1.8 billion as of October 31, 2025. The company also issued $1.0 billion in zero-coupon convertible notes and secured $400 million in GPU financing. Management expects near-term capital expenditure to be funded through existing cash, operating flows, prepayments, and new financing initiatives.
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