IREN Q1 revenue jumps sequentially on AI Cloud strength  

Overview

• US AI Cloud platform's fiscal Q1 revenue rose 66% sequentially, driven by AI Cloud growth

• Adjusted EBITDA for fiscal Q1 missed analyst expectations

• Company's $4 bln ARR target fully contracted and funded, now expected by early 2027

Outlook

• IREN targets more than $4 bln ARR operational by Jan 2027, may extend to Feb

• IREN expects remaining FY27 capex of $15 bln to be met by cash, financing and prepayments

Result Drivers

• AI CLOUD SURGE - AI Cloud revenue nearly tripled sequentially to $200 mln, driven by new service launches and expanded contracts

• CONTRACTED PRICING INCREASES - Company said contracted pricing continued to rise, with 3- and 5-year deals up 11% and 12% respectively

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 4 "hold" and no "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 Limited is $79.50, about 266.2% above its November 4 closing price of $21.71

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)