IREN: The Market Is Way Too Pessimistic

IREN Ltd. (IREN) beat Q1 FY27 estimates, as AI cloud revenue nearly tripled to $200M and adjusted EBITDA margin doubled to 29%. New five-year contracts pay $22M per MW, and H100s were re-contracted at double the price, undercutting the residual value bear case. The Microsoft delay moves the $4B ARR target only to early 2027, and about 2.15 GW of IREN's Texas capacity is already grid-connected.