IREN shares fall 12.37% intraday as Q1 revenue of $240.3M misses $244.91M consensus estimate despite net income beat.

IREN fell 12.37% intraday following its Q1 FY26 earnings report, despite record revenue of $240.3M and a $9.7B Microsoft contract. The decline likely reflects skepticism about execution risks tied to its ambitious GPU expansion plans, including transitioning 160MW of British Columbia data centers to GPUs by 2026 and scaling AI Cloud ARR to $3.4B by 2026. While the company highlighted $1.8B in cash and $9.7B in contracted revenue, its Q1 revenue missed estimates ($240.3M vs. $244.9M) and forward-looking guidance included numerous disclaimers about supply chain, regulatory, and operational uncertainties. Additionally, the press release emphasized non-GAAP metrics (e.g., $662.7M EBITDA including unrealized gains) that may not reflect cash-generating capacity, prompting investor caution. The stock’s sharp intraday drop suggests market concerns about the feasibility of its aggressive growth targets amid heightened execution risk.