IREN Limited (NASDAQ: IREN) has announced significant financial results for the first quarter of the fiscal year 2026, revealing a transformative $9.7 billion multiyear contract with Microsoft. This deal represents a crucial step towards achieving the company’s ambitious goal of $3.4 billion in annualized run-rate revenue (ARR) from AI Cloud services by the end of 2026.
Financial Highlights of Q1 FY26
In Q1 FY26, IREN reported a remarkable total revenue of $240.3 million, marking a staggering increase of 355% compared to the previous year’s quarter. Furthermore, the company achieved a net income of $384.6 million and adjusted EBITDA of $91.7 million. This level of performance reflects the strategic initiatives undertaken by IREN to enhance its operational efficiency and revenue generation capabilities.
- Q1 FY26 Key Financial Metrics:
- Total Revenue: $240.3 million
- Net Income: $384.6 million
- Adjusted EBITDA: $91.7 million
- Reported EBITDA: $662.7 million (including unrealized gains)
- Cash Reserves: $1.8 billion as of October 31, 2025
Strategic Growth Initiatives
IREN’s proactive financing strategy has played a vital role in supporting its growth initiatives. The company has successfully secured $1.0 billion in zero-coupon convertible notes and has increased its GPU financing to $400 million. These financial maneuvers will facilitate significant investments in infrastructure necessary for bolstering its AI Cloud capabilities.
Operational Milestones
As part of its expansion strategy, IREN is aiming to deploy 140,000 GPUs by the end of 2026. Operational milestones include:
- Transition of data centers in British Columbia from ASICs to GPUs, projected for completion by the end of 2026.
- Acceleration of Childress project phases, enhancing capacity for Microsoft deployments.
- Planned energization of the Sweetwater substation, with a target date set for April 2026.
Future Outlook
With the backing of a major client like Microsoft, IREN’s future looks promising. The expected contribution of $1.9 billion in ARR from the Microsoft contract underscores the company’s potential to achieve its AI Cloud revenue targets. Additionally, the adoption of advanced GPU technologies marks a significant shift towards meeting the increasing demand for AI processing capabilities.
IREN’s financial performance and strategic collaborations put it in a strong position within the AI Cloud services sector. As the company continues to scale its operations, stakeholders can anticipate robust growth and operational advancements in the coming years.
