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IREN Q1 revenue jumps sequentially on AI Cloud strength  

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

$228 mln

Q1 Net Loss

$263 mln

Q1 Adjusted EBITDA

Miss

$66 mln

$73.56 mln (11 Analysts)

Q1 Pretax Loss

Beat

$261 mln

$282.69 mln (9 Analysts)

Q1 EBIT

-$186 mln


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


Reuters Recommended Reads

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  • Nov 4 - AMD forecast eases AI spending fears as data-center sales surge

  • Nov 4 - Riot Platforms Q3 revenue beats estimates as data center unit growth offsets weak bitcoin prices


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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