Iren Reports Q1 Surge: Earnings Jump 355%, AI Cloud Gains Momentum

UPDATE: Iren’s Q1 2026 earnings report released on November 6 reveals explosive growth as the company transitions from bitcoin mining to becoming a major AI cloud service provider. Its revenue skyrocketed by 355% year over year to $240.3 million, despite a volatile stock performance.

Iren’s stock closed down 6.8% on November 7, but after-hours trading showed signs of recovery as investors reacted to robust earnings and ambitious future plans. Analysts, however, have raised concerns about execution and financing risks tied to Iren’s rapid expansion strategy.

The company’s net income reached a record $384.6 million, a stark turnaround from a loss of $51.7 million in Q1 2025. This growth was driven in part by $232.9 million from bitcoin mining, while AI cloud services contributed $7.3 million, indicating the start of a significant pivot to AI technology.

Earlier this month, Iren announced a groundbreaking $9.7 billion cloud contract with Microsoft for its Childress, Texas, site, which is expected to generate approximately $1.9 billion in annual recurring revenue once fully operational. This deal, along with a $5.8 billion agreement with Dell Technologies for GPU equipment, has fueled optimism around Iren’s stock, which has surged 238% this quarter alone.

Iren plans to expand its AI cloud infrastructure to achieve $3.4 billion in annual recurring revenue through the deployment of 140,000 GPUs across its facilities. As of October 31, the company reported $1.8 billion in cash and cash equivalents, bolstered by a $1 billion zero-coupon convertible note issued in October and $400 million in GPU financing.

Despite this promising outlook, analysts remain cautious. HC Wainwright has raised its price target on Iren to $56 from $45, while maintaining a ‘sell’ rating, citing concerns over high execution risks. Conversely, Cantor Fitzgerald has lowered its price target to $136 from $142, yet maintains an ‘overweight’ rating, emphasizing the strategic importance of the Microsoft deal.

As Iren navigates this pivotal moment in its evolution, market watchers are advised to keep an eye on its ability to meet ambitious revenue targets for 2026, as the company positions itself as a key player in the burgeoning AI cloud sector.

Stay tuned for further developments as Iren continues to redefine its business model and capitalize on growing demand in the AI landscape.