When investors seek companies
that combine rapid growth with still-reasonable valuation, few names stand out
like IREN Limited (NASDAQ:IREN). In Q1 2026 the company stunned with explosive
revenue and earnings growth, and analysts are pointing toward robust upside.
Yet even with the strong momentum, the stock still appears to offer value
relative to its growth prospects. In this article we will dive into IREN recent
earnings, stock performance & valuation, growth potential, and the risks
investor should consider.
About IREN Limited
IREN Limited, founded in 2018 as
Iris Energy by brothers Daniel and William Roberts, has evolved from a
bitcoin-mining operation into a fast-growing technology-infrastructure
provider. Headquartered in Sydney, it operates renewable-powered data-centre campuses
in North America, supporting AI, high-performance computing and digital
infrastructure. Its model focuses on securing low-cost power sites and building
scalable, high-density facilities. This shift positions IREN to benefit from
major tailwinds in AI compute demand, data-centre expansion and ongoing
opportunities in crypto-related workloads.
IREN Financial Performance
IREN’s financial performance in
Q1 2026 which ended in September 2025 demonstrates exceptional expansion and strengthening fundamentals.
Revenue for the quarter reached $240.3 million, soaring 355.41% from $52.76
million in Q1 2025, while EPS jumped to $1.08, a dramatic 500% improvement from
–$0.27 in Q1 2025. On a trailing-twelve-month basis, revenue rose 234.97% to $688.55
million from $205.56 million, and TTM EPS increased 443.1% to $1.99 from –$0.58.
Profit margins remain very strong, with a 69.82% gross profit margin and a 75.99%
net profit margin, supported by a 12.26% return on assets and a 26.13% return
on equity. The company also maintains a healthy balance sheet with a low 0.34
debt-to-equity ratio.
Over the past five years, IREN
has grown its revenue at a 214.3% CAGR. The company has transitioned from being
unprofitable to profitable, and its financial performance is projected to
continue growing rapidly in the coming years.
IREN Fiscal 2026 Financial
Forecast
Looking ahead, analysts forecast 2026
revenue of $1.16 billion, representing a 126.49% increase from $510.04 million
in 2025, and expect 2026 EPS of $1.19, up 206.29% from $0.39 in 2025. Analysts
currently rate the stock a Buy, with an average price target of $76 offering 63.9%
upside, while the highest target of $136 suggests potential upside of 193.3%.
IREN Stock Price Performance
and Valuation
At the time this article was written IREN stock was trading at $46.37 per share. IREN’s stock has delivered extraordinary performance over the past year, rising 348.9% dramatically outperforming the S&P 500’s 13.2% gain in the same period. Since its IPO in November 2021, the stock is up 86.9%, again beating the S&P 500’s 43.3% increase.
Despite this strong rally, valuation metrics remain reasonable for a
company with such rapid growth: the stock trades at a P/S (TTM) of 15.82, forward
P/S of 11.37, P/E (TTM) of 23.32, and forward P/E of 38.82. These multiples
reflect a premium, but they are supported by IREN’s explosive revenue and
earnings expansion, strong profitability, and substantial forward growth
forecasts. Given the company’s accelerating fundamentals and significant upside
projected by analysts, the valuation still appears attractive for
growth-oriented investors.
IREN Growth Potential
IREN growth prospect remains
strong, driven by several factors.
- Dominant AI Cloud Services
Expansion and $9.7 Billion Microsoft Partnership
IREN has rapidly advanced its AI cloud infrastructure business, positioning itself as a vital player in the hyperscaler market. The company aims to reach $500 million in AI Cloud annualized recurring revenue by Q1 2026. It has already secured contracts for 11,000 of its 23,000 GPUs, representing $225 million in committed ARR. On November 3, 2025, IREN signed a landmark $9.7 billion, five-year partnership with Microsoft.
This deal grants Microsoft access to Nvidia GB300 GPUs at IREN’s Childress, Texas facility and is expected to generate $1.94 billion annually, accounting for about 10% of IREN's total capacity. Additional multi-year contracts with Together AI, Fireworks AI, and Fluidstack have diversified IREN's revenue base, reducing reliance on cryptocurrency and solidifying its position as a leading, energy-efficient AI infrastructure provider. - GPU Infrastructure Scale and
Technological Superiority
IREN has built one of the world's largest and most sophisticated GPU computing clusters, reaching 23,000 GPUs as of September 2025 after a $674 million acquisition of 12,400 processing units. This fleet includes 1,900 NVIDIA H100 and H200 GPUs, 19,100 B200 and B300 NVIDIA units, 1,200 GB300 GPUs, and 1,100 AMD MI350X GPUs. These are deployed primarily at its 750MW Childress, Texas campus, featuring advanced liquid cooling systems supporting up to 200MW of critical IT load. IREN’s Prince George campus in British Columbia offers additional expansion capacity for over 60,000 Blackwell GPUs.
Equipped with NVIDIA InfiniBand for 3.2TB/s bandwidth, IREN ensures low-latency, distributed AI training capabilities. Paired with renewable energy and top-tier power efficiency, this infrastructure positions IREN to capture premium margins amid rising demand for energy-efficient, high-performance AI computing from hyperscalers. - Bitcoin Mining Platform
Stabilization and Cost Leadership
IREN completed its Bitcoin mining expansion by mid-2025, achieving 50 EH/s installed capacity, making it one of the largest and most efficient miners globally. This ~50x growth in just 30 months highlights outstanding operational execution. The 750MW Childress site, which anchors the platform with 650MW capacity, utilizes low-cost renewable energy and an efficiency of 15 joules per terahash, resulting in a $41,000 all-in cash cost per Bitcoin mined in the last quarter.
While halting further mining expansion at 52 EH/s to focus on AI cloud infrastructure, Bitcoin mining remains a critical revenue stream, forecasted to generate about $1 billion by year-end. Combined with $200-250 million expected from AI Cloud services, this balanced approach mitigates risk and captures both crypto and AI market growth opportunities.
Risk to Consider
While IREN growth story is
strong, we should be mindful of potential risks.
- Dependence on Bitcoin Prices
IREN’s business centers on cryptocurrency mining powered by renewable energy, making its financial results highly sensitive to fluctuating Bitcoin prices. These price swings are influenced by factors like market sentiment, government regulations, and macroeconomic conditions. This dependence exposes IREN to significant volatility in earnings and cash flow, as shifts in Bitcoin valuation directly impact its core revenue stream. - Extreme Stock Volatility
IREN’s stock shows very high volatility with a beta close to 4.0, meaning it tends to fluctuate about four times more than the overall market. This level of sensitivity makes trading the stock particularly risky, as its price can experience large swings both upward and downward. Investors should be wary of this elevated market risk and the potential for significant price movement compared to typical stocks. - Regulatory Risks
Cryptocurrency mining faces significant regulatory challenges in 2025, including stricter environmental regulations targeting its high energy consumption. Many jurisdictions now require emissions reporting, carbon offsets, and adherence to sustainability practices. These regulatory pressures create uncertainty and elevate operational hurdles for mining companies like IREN. The need to meet these evolving standards impacts financial performance and growth strategies, making regulatory compliance a critical risk factor.
Conclusion
IREN Limited stands out as a rapidly growing technology-infrastructure company with exceptional financial momentum and strong long-term potential. Explosive revenue and earnings growth, high margins, healthy returns, and conservative leverage highlight a solid and scalable business model. Despite the stock’s impressive rally, valuation levels remain reasonable considering future expansion and analyst-projected upside. While risks exist, the company’s positioning in AI-driven data-centre demand makes IREN an attractive opportunity for investors seeking high-growth exposure with meaningful value still on the table.
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