IREN (NASDAQ:IREN) Releases Earnings Results, Beats Estimates By $0.14 EPS

IREN (NASDAQ:IREN) announced its quarterly earnings results on Thursday. The company reported ($0.41) EPS for the quarter, beating analysts’ consensus estimates of ($0.55) by $0.14, Zacks reports. The company had revenue of $137.22 million during the quarter, compared to analysts’ expectations of $132.29 million. IREN had a negative return on equity of 13.13% and a net margin of 20.90%.

Here are the key takeaways from IREN’s conference call:

• AI Cloud demand remains strong: IREN said FY2026 capacity is largely sold out, with approximately $4 billion of contracted ARR for 2026, including $1 billion already operating, and late-stage discussions underway for substantial 2027 and 2028 capacity.
• Higher pricing and customer diversification support growth: Recent three-year contracts are pricing above $20 million per megawatt, with active discussions around $25 million, while customers span hyperscalers, enterprises, AI developers, and frontier AI labs; Together AI and Fireworks AI also renewed and expanded.
• Execution and financing momentum advanced: Horizon 1 was delivered to Microsoft, with Horizons 2–4 targeted for the December quarter, while IREN secured $6.5 billion of GPU financing in the past three months and expects customer prepayments to fund a meaningful portion of GPU capital costs.
• Expansion requires substantial capital and near-term spending: FY2027 CapEx is expected at approximately $25 billion–$30 billion, and first-quarter cash SG&A is projected to rise by $40 million–$50 million sequentially as the company invests ahead of growth.
• Transition costs weighed heavily on reported results: Fourth-quarter revenue declined to $137.2 million as mining hardware was decommissioned ahead of GPU installations, while the company reported a $684 million net loss, largely due to non-cash impairments and lower fair value of mining hardware held for sale.

IREN Stock Up 2.4%

Shares of IREN opened at $40.53 on Friday. The company has a market capitalization of $14.48 billion, a PE ratio of 84.44 and a beta of 4.29. IREN has a 12 month low of $22.63 and a 12 month high of $76.87. The stock’s 50-day moving average price is $41.68 and its two-hundred day moving average price is $45.59. The company has a current ratio of 3.72, a quick ratio of 3.72 and a debt-to-equity ratio of 1.44.

Hedge Funds Weigh In On IREN

Hedge funds have recently made changes to their positions in the stock. Corient Private Wealth LLC acquired a new stake in IREN during the 4th quarter valued at approximately $220,000. Axxcess Wealth Management LLC acquired a new stake in shares of IREN during the fourth quarter worth $622,000. Alpine Woods Capital Investors LLC acquired a new stake in shares of IREN during the fourth quarter worth $595,000. Mercer Global Advisors Inc. ADV raised its stake in IREN by 52.1% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 17,926 shares of the company’s stock worth $681,000 after buying an additional 6,138 shares during the last quarter. Finally, Feynman Point Asset Management LLC bought a new position in IREN during the fourth quarter worth $629,000. 41.08% of the stock is currently owned by institutional investors.

More IREN News

Here are the key news stories impacting IREN this week:

• Positive Sentiment: IREN reported fiscal fourth-quarter revenue of approximately $137.2 million, exceeding the roughly $132.3 million consensus estimate, while its $0.41 per-share loss was narrower than the expected $0.55 loss. IREN quarterly earnings report
• Positive Sentiment: The company announced a new multiyear contract with a leading frontier AI laboratory, bringing contracted annualized recurring revenue for 2026 capacity to about $4 billion, including approximately $1 billion of operating ARR today. IREN FY26 results
• Positive Sentiment: IREN said $2.8 billion of GPU financing will fund about 90% of associated GPU capital expenditures, potentially reducing near-term equity funding needs as it expands toward roughly 1.2 gigawatts of AI data-center capacity. IREN contracted ARR and capex report
• Positive Sentiment: A reported first live AI workload for Microsoft and continued strength in Bitcoin near $80,000 support the company’s AI-hosting transition and remaining cryptocurrency exposure. IREN Microsoft AI workload report
• Neutral Sentiment: Investors remain focused on whether IREN can convert its sold-out AI capacity and large contracted revenue base into profitable, delivered capacity; management is targeting $25 billion–$30 billion of fiscal 2027 capital expenditure. IREN AI capacity analysis
• Negative Sentiment: IREN disclosed a roughly $702.6 million full-year net loss, including a reported $684 million loss tied to decommissioning Bitcoin-mining hardware. The impairment highlights the cost of shifting resources from mining to AI infrastructure. IREN hardware decommissioning report
• Negative Sentiment: Neocloud shares, including IREN, weakened after reports that Nvidia shelved proposed revenue-sharing deals, raising concerns about customer economics and the funding model for AI data-center operators. J.P. Morgan also maintained a Sell rating. Neocloud stocks and Nvidia report

Wall Street Analysts Forecast Growth

Several research firms have commented on IREN. Sanford C. Bernstein reiterated an “outperform” rating and issued a $100.00 target price on shares of IREN in a research report on Thursday, August 13th. Jefferies Financial Group initiated coverage on IREN in a report on Thursday, June 18th. They set a “buy” rating and a $79.00 price target on the stock. Citigroup reaffirmed a “market outperform” rating on shares of IREN in a research note on Friday. BTIG Research raised their price objective on shares of IREN to $80.00 and gave the company a “buy” rating in a report on Friday, May 8th. Finally, Cantor Fitzgerald lifted their target price on shares of IREN from $77.00 to $99.00 and gave the stock an “overweight” rating in a research report on Thursday, May 28th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $83.00.

IREN Company Profile

IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.