Iren’s Q1 Earnings Reveal Surge in AI Cloud Services, Stock Volatile

BREAKING: Iren, the bitcoin miner turned AI cloud service provider, just announced its Q1 2026 earnings, revealing a staggering 355% year-over-year revenue surge to $240.3 million. The report, released on November 6, showcases the company’s rapid transformation, even as its stock faced volatility, closing 6.8% lower on November 7 despite a 2.7% gain earlier this week.

The earnings call highlights a pivotal shift for Iren, which is transitioning from a bitcoin mining operation to a formidable player in the AI cloud infrastructure sector. Iren’s AI cloud services contributed $7.3 million in revenue, demonstrating early success in commercial GPU deployments that are expected to expand significantly.

Despite the remarkable growth, analysts raised concerns over execution and financing risks related to Iren’s ambitious expansion plans. The company’s net income skyrocketed to $384.6 million, a dramatic turnaround from the $51.7 million loss reported in Q1 2025, largely driven by robust bitcoin mining activity that accounted for $232.9 million of total revenue.

Earlier this month, Iren secured a groundbreaking $9.7 billion cloud contract with Microsoft, which is projected to yield $1.9 billion in annual recurring revenue once fully operational. This deal, alongside a $5.8 billion agreement with Dell Technologies for GPU and ancillary equipment, has sparked significant interest in Iren’s stock potential, pushing its value up by 238% this quarter.

Iren’s ambitious plans include targeting $3.4 billion in AI cloud annual recurring revenue through the deployment of 140,000 GPUs across its sites. As of October 31, the company reported $1.8 billion in cash and cash equivalents, bolstered by a $1 billion zero-coupon convertible note and a record $400 million in GPU financing.

While analysts at HC Wainwright have raised their price target on Iren to $56, they maintain a sell rating, citing concerns over the company’s lofty revenue guidance for 2026. Conversely, Cantor Fitzgerald has adjusted its price target to $136, emphasizing the significance of the Microsoft deal in positioning Iren as an emerging neocloud provider.

As Iren navigates these transformative changes, the market watches closely. The company’s strategic partnerships and revenue growth reflect a bold venture into AI cloud services, yet the road ahead is fraught with challenges that investors must consider. The implications for both Iren and the broader tech landscape are profound, marking a critical juncture in the evolution of cloud computing and cryptocurrency mining.

Stay tuned as we continue to monitor Iren’s progress and the unfolding developments in the tech sector.