Detailed performance report for IREN LTD covering Q2 2026. Gain clarity on earnings, revenue trends, and AI-enhanced strategic analysis.
Summary of Financial Performance: FY2026 revenue was $137.2 million in the June quarter, including $70.5 million of AI cloud revenue, down $7.6 million sequentially as mining hardware was decommissioned ahead of GPU installs. Cost of revenue declined $6.6 million due to lower electricity usage. The quarter had a net loss of $684 million, driven mainly by $450.4 million of noncash impairments and a $102.1 million decrease in the fair value of mining hardware held for sale. ARR exited Q4 at about $0.5 billion, rose to $1 billion today after Microsoft accepted Horizon 1, and is expected to exceed $4 billion by the end of December quarter, already contracted.
Company Outlook & Strategy: IREN is targeting roughly 300 MW of IT load delivered in 2026 and another 0.5 GW in 2027, with more than 5 GW announced and a multi-gigawatt pipeline behind it. Management emphasized a deliberate strategy of broad customer diversification across hyperscalers, enterprises, AI developers, and frontier labs, with a focus on long-term contracts, prepayments, and service expansion. FY27 CapEx guidance is $25 billion to $30 billion, mainly for contracted Microsoft deployments, 2026 ARR fulfillment, new liquid-cooled capacity, and early 2028 buildout.
Key Industry Trends: Management said AI demand is scaling far faster than physical infrastructure, creating a structural shortage of compute and power capacity. Pricing for AI infrastructure has risen sharply, with 3-year contract pricing up about 125% since November and 5-year pricing up about 70%. They highlighted tighter interconnection in Texas and growing demand for liquid-cooled, next-generation GPU infrastructure.
Operational Highlights: Horizon 1 was delivered to Microsoft and achieved NVIDIA Exemplar Cloud status on GB300 NVL72. Horizon 2 is moving toward commissioning, while Horizons 3 and 4 are in late construction and targeted for the December quarter. Childress, Mackenzie, and Prince George remain active, with retrofits, rack installs, and liquid-cooled deployments underway. The company is also building Sweetwater 1, progressing Horizons 5 and 6, and converting Canal Flats fully to liquid cooling for GB300s. Headcount nearly tripled in FY26, including additions from Mirantis and Nostrum, and management expects similar growth in FY27. Mirantis was also named an inaugural NVIDIA-certified hypervisor.
Challenges & Risks: The company is still in the middle of a costly transition away from mining, with mining operations expected to be effectively decommissioned by end-December 2026. Near-term results were pressured by asset impairments, lower mining revenue, and rising cash SG&A expected to increase $40 million to $50 million sequentially as investment ramps. Execution risk remains tied to GPU delivery timelines, construction schedules, long-lead equipment, financing markets, and the pace of customer contracting.
Key Analyst Questions & Responses: Goldman Sachs asked about how Mirantis supports commercialization and whether it is already helping close or enable deals, including potential use with market aggregators like OpenRouter. Management responded that Mirantis strengthens the platform by adding software and managed services on top of infrastructure and GPUs, increasing value and customer utility; they did not indicate it was a direct requirement for current signed deals, but implied it helps expand the commercial offering and future monetization.
Access the official earnings call transcript for IREN-LTD 2026 Q2. It provides valuable insights into management commentary, performance drivers, and forward-looking guidance directly from the company.