IREN Limited Q2 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Software | Market Cap: ₹22.9K Cr
- Targeting $3.7 billion in annual recurring revenue (ARR) by the end of calendar 2026, up from $3.1 billion currently contracted. - IREN targets $3.7 billion Annual Recurring Revenue (ARR) by the end of calendar 2026, up from $3.1 billion currently.
From IREN Limited's Q2 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹64.05
Market Cap
₹22.9K Cr
P/E Ratio
77.6
Revenue Rank
Margin Rank
How does IREN Limited rank in Software?
Compare IREN Limited against every Software company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 1- →Targeting $3.7 billion in annual recurring revenue (ARR) by the end of calendar 2026, up from $3.1 billion currently contracted.
- →Revenue ramp expected to be back-end weighted in 2026, with Microsoft contract and additional GPU deployments driving growth starting Q3 2026.
- →Scaling data center capacity to 480 megawatts of AI cloud capacity in 2026, with 150,000 GPUs deployed.
- →Expansion to 1,210 megawatts in 2027, including 730 megawatts under construction in British Columbia and Texas.
- →Long-term platform growth supported by a secured 5-gigawatt global power portfolio spanning North America, Europe (Spain), and Asia Pacific (anchored by Australia).
- →Strategic NVIDIA partnership tied to deployment of up to 600,000 GPUs, supporting up to 5 gigawatts of AI infrastructure globally.
- →Ongoing strong customer demand with all operational capacity fully contracted; no idle GPUs.
- →Growth driven by combination of hyperscale and AI native end-market customers.
📈 Profitability & Margins
No information- →IREN targets $3.7 billion Annual Recurring Revenue (ARR) by the end of calendar 2026, up from $3.1 billion currently.
- →The revenue ramp to $3.7 billion is expected to be back-end weighted, with significant contributions from Microsoft contract and additional GPUs starting Q3 2026.
- →Adjusted EBITDA was $59.5 million for Q3 FY26, down from $75.3 million in prior quarter, reflecting ongoing transition from Bitcoin mining to AI cloud.
- →Net losses are currently impacted by noncash impairments tied to hardware decommissioning but reflect strategic repositioning towards AI cloud, seen as higher long-term value.
- →Execution focus is on accelerating "time to compute" to drive revenue; operational capacity is fully contracted with no idle GPUs.
- →NVIDIA’s $2.1 billion investment and 5-year $3.4 billion AI cloud contract support growth with GPU deployments tied to capital infusion.
- →Financing initiatives (prepayments, debt, corporate sources) in place to support capital-intensive build-out with expected improvements as assets stabilize.
🏗️ Capital Expenditure Plans
Yes- →The 5-gigawatt expansion requires significant capital, but funding is progressive over years, aligned with construction phases.
- →Capital markets are currently supportive; financing includes reinvested revenue, GPU financing, and strategic partnerships.
- →NVIDIA partnership includes up to 5 gigawatts of AI infrastructure deployment with a $2.1 billion investment tied directly to GPU deployment milestones.
- →Approximately 95% of Microsoft GPU-related CapEx was financed through prepayments and GPU financing at ~3% interest.
- →GPU CapEx will leverage secured debt, prepayments, and other financing initiatives at corporate and project levels.
- →Data center financing evolves from balance sheet to project-level and refinancing as assets stabilize.
- →Air-cooled retrofits use existing infrastructure, reducing CapEx compared to new liquid-cooled builds, enhancing capital efficiency.
- →The Nostrum acquisition in Spain adds secured power and development opportunities with scalable infrastructure.
- →Overall, disciplined balance of debt and equity maintained to support phased global build-out.
💰 Fundraising & Capital Structure
Yes- →The company has $2.6 billion in cash and cash equivalents as of April 30 and expects this, along with operating cash flows and GPU financing, to support near-term CapEx.
- →For GPU CapEx, the company is leveraging secured debt and customer prepayments, with approximately 95% of Microsoft GPU-related CapEx expected to be funded this way.
- →Workstreams are underway for additional GPU financing to support upcoming deployments.
- →Data center financing will evolve from balance sheet/corporate sources in early stages to asset/project-level financing during construction and customer contracting, with refinancing and capital recycling as assets stabilize.
- →They intend to maintain a disciplined balance of debt and equity as the platform scales.
- →Capital markets are currently open and supportive; other financing options, including private markets, are also being considered.
📋 Order Book & Pipeline
Yes- →Current contracted Annual Recurring Revenue (ARR) is $3.1 billion.
- →Targeting $3.7 billion ARR by the end of calendar 2026.
- →All operational capacity is fully contracted; no idle GPUs.
- →Substantial portions of 2026 and 2027 capacity are already contracted, often before arrival.
- →Active discussions ongoing with a range of customers, including hyperscale clients and AI native labs, for future capacity.
- →There is significant demand for air cooled capacity slated for second half of 2026 and early 2027.
- →The NVIDIA 5-year AI cloud contract valued at $3.4 billion supports internal workloads and is part of the broader partnership.
- →Financing arrangements, including prepayments and GPU financing (similar to Microsoft contract), are in place to support capacity build-out.
Key Metrics
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Order Book
Frequently Asked Questions
What were IREN Limited Q2 FY26 results?
- Targeting $3.7 billion in annual recurring revenue (ARR) by the end of calendar 2026, up from $3.1 billion currently contracted. - IREN targets $3.7 billion Annual Recurring Revenue (ARR) by the end of calendar 2026, up from $3.1 billion currently.
What is IREN Limited share price analysis?
IREN Limited currently shows a strong growth signal based on ranking data. The stock trades at a P/E of 77.6 with a market cap of $22,890. Investors should review the full earnings analysis for detailed insights.
Is IREN Limited planning capital expenditure?
- The 5-gigawatt expansion requires significant capital, but funding is progressive over years, aligned with construction phases.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.