IREN (NASDAQ:IREN) Stock Jumps 20% Following Better-Than-Expected Earnings

IREN Limited (NASDAQ:IREN) shares traded up 20% during trading on Friday following a better than expected earnings announcement. The company traded as high as $22.46 and last traded at $21.64. 111,027,311 shares were traded during trading, an increase of 149% from the average session volume of 44,531,273 shares. The stock had previously closed at $18.03.

The company reported ($0.66) EPS for the quarter, beating the consensus estimate of ($0.72) by $0.06. IREN had a negative net margin of 99.38% and a negative return on equity of 15.46%. The firm had revenue of $228.00 million during the quarter, compared to the consensus estimate of $228.26 million.

Key IREN News

Here are the key news stories impacting IREN this week:

• Positive Sentiment: Fiscal Q1 2027 AI Cloud revenue nearly tripled sequentially to about $200 million. Total revenue rose 66% to $228 million, and the adjusted EBITDA margin reached 29%; the quarterly per-share loss was narrower than analysts expected. IREN Q1 results highlights
• Positive Sentiment: IREN said its revenue backlog exceeded $20 billion, with roughly two-thirds tied to investment-grade customers. A new five-year AI Cloud contract also includes a customer prepayment covering 90% of GPU costs, which may help support expansion. IREN: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Cantor Fitzgerald cut its price target from $99 to $47 but maintained an Overweight rating, reflecting a more cautious valuation alongside continued optimism about potential upside. Cantor Fitzgerald rating and price target
• Negative Sentiment: IREN pushed its roughly $4 billion annualized-revenue target into early 2027 after customer and deployment delays, including issues affecting Microsoft-related infrastructure. That timing slippage has raised concerns about execution. IREN AI Cloud revenue and ARR target
• Negative Sentiment: Financing remains a key risk: reports cite net debt of about $4.43 billion, cash of $3.52 billion, and roughly $6 billion of capex still to finance. The quarter also included a $263 million net loss, while Bitcoin-mining revenue fell sharply. IREN customer prepayments and funding risks

Wall Street Analyst Weigh In

Several brokerages have recently commented on IREN. JPMorgan Chase & Co. raised IREN from an “underweight” rating to an “overweight” rating and boosted their price objective for the stock from $46.00 to $65.00 in a report on Monday, September 14th. Needham & Company LLC reaffirmed a “hold” rating on shares of IREN in a research note on Tuesday, July 21st. B. Riley Financial dropped their target price on shares of IREN from $91.00 to $64.00 and set a “buy” rating for the company in a research report on Friday, October 30th. Citigroup reissued a “market outperform” rating on shares of IREN in a research note on Friday, August 28th. Finally, Compass Point reissued a “buy” rating and issued a $85.00 price target on shares of IREN in a research note on Friday, August 28th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $69.54.

Hedge Funds Weigh In On IREN

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Situational Awareness LP raised its holdings in shares of IREN by 34.5% during the 1st quarter. Situational Awareness LP now owns 11,698,835 shares of the company’s stock valued at $401,036,000 after buying an additional 2,998,214 shares in the last quarter. Bank of America Corp DE boosted its position in IREN by 58.4% during the first quarter. Bank of America Corp DE now owns 2,138,619 shares of the company’s stock valued at $73,312,000 after buying an additional 788,547 shares during the period. Swiss National Bank purchased a new stake in IREN during the first quarter valued at about $33,032,000. Amundi grew its stake in shares of IREN by 3,865.8% during the first quarter. Amundi now owns 845,113 shares of the company’s stock valued at $28,970,000 after buying an additional 823,803 shares during the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. bought a new position in shares of IREN during the first quarter valued at about $20,878,000. 41.08% of the stock is currently owned by hedge funds and other institutional investors.

IREN Stock Up 20.0%

The stock has a market capitalization of $8.53 billion, a P/E ratio of -9.25 and a beta of 4.33. The stock has a 50 day moving average price of $36.25 and a 200-day moving average price of $43.77. The company has a debt-to-equity ratio of 1.80, a current ratio of 3.55 and a quick ratio of 3.55.

IREN Company Profile

IREN Limited, formerly known as Iris Energy Limited, is a data center infrastructure company focused on bitcoin mining and high-performance computing. The company develops and operates data centers designed to support energy-intensive computing applications, including bitcoin mining and artificial intelligence (AI) cloud services.

IREN’s operations are supported by company-owned electrical infrastructure, data centers and computing hardware. Its bitcoin mining business uses specialized application-specific integrated circuit (ASIC) machines, while its AI cloud offering is designed to provide access to advanced computing resources for AI development and other high-performance computing workloads.

Founded in 2018 and headquartered in Sydney, Australia, IREN has developed data center operations in North America, including facilities in British Columbia, Canada, and Texas.