IREN (NASDAQ:IREN) Posts Quarterly Earnings Results, Beats Estimates By $0.06 EPS

IREN (NASDAQ:IREN) released its earnings results on Thursday. The company reported ($0.66) earnings per share for the quarter, beating the consensus estimate of ($0.72) by $0.06, FiscalAI reports. IREN had a negative return on equity of 15.46% and a negative net margin of 99.38%. The business had revenue of $228.00 million for the quarter, compared to the consensus estimate of $228.26 million.

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

• AI Cloud growth accelerated: Revenue rose 183% quarter over quarter to $200 million, operating ARR doubled to $1 billion, and adjusted EBITDA margin increased to 29%. IREN nevertheless reported a $263 million net loss, while operating expenses rose as it expanded staffing and operations.
• Contract demand and pricing remain strong: Backlog exceeded $20 billion, with two-thirds tied to investment-grade customers. Recent deals included a five-year contract at about $22 million per megawatt with a customer prepayment covering roughly 90% of GPU CapEx, and a shorter-term contract above $40 million per megawatt.
• More than $4 billion of targeted operating ARR is delayed: Customer-requested network changes and supplier timing pushed the expected ramp from year-end to January, with completion potentially slipping to late February. The company said the required network upgrade adds immaterial CapEx, but timing depends partly on supplier deliveries.
• Growth spending is being paced amid tighter capital markets: IREN plans about $15 billion of CapEx for the remainder of the fiscal year, leaving roughly $6 billion beyond its $9 billion of cash and committed funding to finance. Management cited potential funding sources of $12 billion–$15 billion, while saying deployment pace will depend on financing conditions, contracts, and returns.

IREN Trading Up 20.0%

IREN stock traded up $3.61 during trading on Friday, reaching $21.64. 112,473,833 shares of the company were exchanged, compared to its average volume of 44,586,285. The stock’s 50 day simple moving average is $36.25 and its two-hundred day simple moving average is $43.77. The company has a market capitalization of $8.53 billion, a P/E ratio of -9.25 and a beta of 4.33. 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 has a 52-week low of $17.16 and a 52-week high of $70.71.

Wall Street Analyst Weigh In

IREN has been the topic of a number of research reports. Weiss Ratings lowered IREN from a “sell (d+)” rating to a “sell (d)” rating in a report on Wednesday, October 28th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $100.00 target price on shares of IREN in a report on Thursday, August 13th. B. Riley Financial reduced 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. Compass Point reiterated a “buy” rating and issued a $85.00 target price on shares of IREN in a research report on Friday, August 28th. Finally, Cantor Fitzgerald decreased their price target on shares of IREN from $99.00 to $47.00 and set an “overweight” rating on the stock in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $69.54.

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 loss per share was narrower than analysts expected—supporting the earnings-driven rebound. IREN stock rebounds as company’s Q1 AI cloud revenue surges
• Positive Sentiment: The revenue backlog topped $20 billion, with roughly two-thirds attributed to investment-grade customers. A new five-year AI cloud agreement includes customer prepayment of 90% of GPU costs, which may help fund expansion. Iren: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: HC Wainwright and Cantor Fitzgerald cut their price targets to $56 and $47, respectively, while keeping Buy and Overweight ratings. The revised targets still imply substantial upside from the quoted share price, but the reductions reflect more cautious expectations. HC Wainwright rating information
• Negative Sentiment: IREN pushed its $4 billion annualized-revenue target into early 2027 after deployment delays, including at projects tied to Microsoft. These setbacks raise execution concerns and postpone expected growth. IREN Q1 Earnings Call Highlights AI Growth and Deployment Delays
• Negative Sentiment: Despite AI growth, IREN reported a $263 million net loss; Bitcoin mining revenue also fell sharply. Rising net debt and substantial remaining capital needs—including about $6 billion yet to be financed—could increase balance-sheet and dilution risks. IREN moves its $4 billion AI cloud goal into 2027

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.