Iris Energy Q1 net income swings to profit

Overview

• Iris Energy Q1 FY26 rev grows 355% yr/yr to $240.3 mln

• Net income for Q1 FY26 rises to $384.6 mln from a loss last year

• Pretax profit for Q1 FY26 beats analyst expectations

Outlook

• Iris Energy targets $3.4 bln AI Cloud ARR by end of 2026

• Company expects $1.9 bln ARR from Microsoft contract

• New contracts aim for >$500 mln AI Cloud ARR by Q1 2026

Result Drivers

• MICROSOFT CONTRACT - Secured $9.7 bln contract with Microsoft, expected to contribute $1.9 bln in ARR

• NEW CONTRACTS - Multi-year contracts with Together AI, Fluidstack, and others to drive AI Cloud ARR growth

• DATA CENTER EXPANSION - Transition to GPUs and expansion of liquid-cooled data centers for Microsoft

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"

• Wall Street's median 12-month price target for IREN Ltd is $75.00, about 1.9% below its November 5 closing price of $76.41

• The stock recently traded at 93 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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