Iren Reports Q1 Earnings: AI Revenue Soars 355%, Stock Volatile

UPDATE: Iren’s Q1 2026 earnings report reveals a staggering 355% year-over-year revenue surge, with total earnings hitting $240.3 million, as the company pivots from bitcoin mining to become a formidable player in AI cloud services. Released on November 6, 2025, just after market close, the report has sent ripples through the stock market, showcasing both promise and concern.

Despite a remarkable performance, Iren’s stock experienced volatility, closing 6.8% lower on November 7, even as it managed a 2.7% gain for the week. Analysts have raised flags about execution and financing risks tied to its ambitious expansion plans, contributing to ongoing uncertainty about Iren’s future. However, the stock did rebound in after-hours trading as investors digested the earnings report.

This quarter, Iren’s AI cloud services generated $7.3 million in revenue. The majority, $232.9 million, still stems from bitcoin mining operations, reflecting both the company’s legacy and its rapid transformation. The net income skyrocketed to a record $384.6 million, bouncing back from a $51.7 million loss reported in Q1 2025, which included unrealized gains.

The highlights of Iren’s report include a significant 3,500% increase in adjusted EBITDA, now at $91.7 million. The company is on a trajectory to target $3.4 billion in AI cloud annual recurring revenue (ARR) by deploying 140,000 GPUs across its sites.

Iren’s ambitious plans have been bolstered by recent landmark agreements, including a $9.7 billion cloud contract with Microsoft. This five-year deal, focused on a 200 megawatt IT load at Iren’s Texas facility, includes a 20% customer prepayment and is expected to deliver approximately $1.9 billion in annual recurring revenue once fully rolled out. Following this announcement, Iren’s stock surged, reflecting a 238% increase this quarter alone.

Additionally, Iren secured a $5.8 billion agreement with Dell Technologies for GPUs and related equipment, further solidifying its position in the cloud landscape. These developments have intensified discussions about Iren’s stock potential, marking it as a rising neocloud provider.

Financial analysts remain divided about Iren’s outlook. While HC Wainwright raised its price target to $56 from $45, it maintained a sell rating, calling the Q1 earnings “underwhelming.” The firm warned investors about high execution and financial risks linked to meeting revenue expectations for 2026. Conversely, Cantor Fitzgerald adjusted its price target down to $136 from $142, citing the Microsoft deal as the cornerstone of Iren’s earnings and predicting additional large-scale agreements in the near future.

As Iren moves forward, it is crucial to watch how the company manages its ambitious expansion amidst market skepticism. Analysts predict that the execution of its substantial contracts will be pivotal in determining Iren’s trajectory in the rapidly evolving AI cloud sector. With $1.8 billion in cash and equivalents as of October 31, and a recent $1 billion zero-coupon convertible note, Iren appears poised to navigate the challenges ahead.

Stay tuned for further updates on Iren’s journey as it continues to transform the landscape of AI cloud services and bitcoin mining.