IREN 2026 Q1 Earnings Record Net Income Surges 843.9%

IREN (IREN) delivered record fiscal 2026 Q1 earnings, with results far exceeding expectations and a significant net income turnaround. The company reported $240.29 million in revenue, a 355.4% year-over-year increase, and net income of $384.61 million—a dramatic reversal from a $51.70 million loss in 2025 Q1. IREN also provided bullish guidance, including a $9.7 billion AI cloud contract with Microsoft and plans to scale GPU capacity to 140,000 units by 2026.

Revenue

IREN’s total revenue surged 355.4% year-over-year to $240.29 million in Q1 2026, driven by a dramatic increase in bitcoin mining revenue and strong AI cloud services. Bitcoin mining accounted for $232.9 million of the total, reflecting a 50-fold year-over-year jump, while AI Cloud Services revenue reached $7.3 million, maintaining sequential stability. The company’s vertically integrated platform and secured power capacity underpinned this performance, enabling efficient scaling across data centers in the U.S. and Canada.

Earnings/Net Income

IREN’s net income skyrocketed to $384.61 million in Q1 2026, a 843.9% improvement from the $51.70 million loss in the prior year. Earnings per share (EPS) jumped to $1.42 from a $0.27 loss, marking a 625.9% positive swing. This remarkable turnaround reflects disciplined execution, the Microsoft contract, and robust capital efficiency. The EPS result not only highlights operational resilience but also underscores IREN’s strategic shift toward high-margin AI cloud services.

Post-Earnings Price Action Review

The stock price of IREN experienced mixed short-term performance following the earnings release. Shares dropped 4.19% during the latest trading day but gained 2.68% over the subsequent week, with a 3.81% rise month-to-date as of November 7, 2025. The volatility reflects investor reactions to the company’s transformative AI cloud contract and guidance, though near-term balance sheet pressures and execution risks remain concerns.

CEO Commentary

Daniel Roberts, Co-Founder and Co-CEO, emphasized IREN’s Q1 performance as a testament to its vertically integrated model and strategic focus on AI cloud expansion. He highlighted the $9.7 billion Microsoft contract as a validation of IREN’s capabilities, enabling access to hyperscaler customers and accelerating GPU deployment. With plans to scale to 140,000 GPUs by 2026 and target $3.4 billion in annualized revenue, Roberts expressed confidence in IREN’s position in the AI market, driven by secured power capacity and disciplined capital allocation.

Guidance

IREN outlined aggressive growth plans, including scaling GPU capacity to 140,000 units by 2026 and leveraging secured power and data center infrastructure. The Microsoft contract is expected to generate $1.94 billion in annual recurring revenue with 85% EBITDA margins. Capital expenditures will be funded through Microsoft prepayments, GPU financing, and corporate instruments, with $2.5 billion in secured financing targeted. The company’s $1.8 billion cash balance as of October 2025 further supports its expansion, while management anticipates 25–30% levered IRRs and upside potential based on financing terms.

Additional News

IREN’s $9.7 billion AI cloud contract with Microsoft, announced November 6, 2025, marked a strategic milestone, validating its vertically integrated platform and GPU deployment capabilities. CEO Daniel Roberts hinted at potential deals exceeding the Microsoft contract, citing interest from hyperscalers seeking co-location and infrastructure partnerships. Analysts revised price targets post-earnings, with Cantor Fitzgerald lowering its target to $136 (Overweight) and HC Wainwright raising its target to $56 (Sell). JPMorgan highlighted the Microsoft deal’s long-term upside but noted near-term balance sheet strain from $9 billion in GPU and data center buildout costs.

Final Takeaway

IREN’s Q1 2026 results underscore its successful pivot from bitcoin mining to AI cloud services, driven by the Microsoft contract and disciplined capital management. While short-term execution risks and funding needs persist, the company’s secured power capacity, $1.8 billion cash balance, and $3.4 billion AI cloud revenue target position it for long-term growth. Investors remain cautiously optimistic, balancing enthusiasm for the AI cloud opportunity with concerns over dilution and execution challenges.