IREN (NASDAQ:IREN) Shares Climb 20% After Better-Than-Expected Earnings

Key Points

• IREN shares jumped 20% after quarterly adjusted results beat expectations: its per-share loss was $0.66 versus analysts’ forecast of $0.72, while revenue reached $228 million, near estimates.
• AI Cloud revenue nearly tripled sequentially to about $200 million, helping total revenue rise 66%; IREN also reported a backlog exceeding $20 billion and a 29% adjusted EBITDA margin.
• Execution and funding remain risks: IREN pushed its roughly $4 billion annualized-revenue target into early 2027 amid deployment delays, and faces substantial capital needs and a reported quarterly net loss of $263 million.

IREN Limited (NASDAQ:IREN - Get Free Report) shares traded up 20% during mid-day trading on Friday following a stronger than expected earnings report. The stock traded as high as $22.46 and last traded at $21.64. 111,027,311 shares traded hands during mid-day 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, topping 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 for the quarter, compared to analysts' expectations 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

Analysts Set New Price Targets

A number of analysts recently commented on the company. Sanford C. Bernstein reiterated an "outperform" rating and set a $100.00 price target on shares of IREN in a report on Thursday, August 13th. Cantor Fitzgerald reduced their price objective on IREN from $99.00 to $47.00 and set an "overweight" rating for the company in a research note on Friday. Citigroup reaffirmed a "market outperform" rating on shares of IREN in a research report on Friday, August 28th. Weiss Ratings cut IREN from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, October 28th. Finally, JPMorgan Chase & Co. upgraded shares of IREN from an "underweight" rating to an "overweight" rating and increased their price target for the company from $46.00 to $65.00 in a research report on Monday, September 14th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $69.54.

Hedge Funds Weigh In On IREN

Institutional investors have recently bought and sold shares of the company. Allworth Financial LP lifted its holdings in IREN by 4.4% during the 2nd quarter. Allworth Financial LP now owns 7,162 shares of the company's stock worth $328,000 after purchasing an additional 305 shares in the last quarter. Versant Capital Management Inc boosted its stake in IREN by 14.5% in the 2nd quarter. Versant Capital Management Inc now owns 2,509 shares of the company's stock worth $115,000 after purchasing an additional 317 shares during the period. Hollencrest Capital Management grew its holdings in IREN by 50.0% during the 1st quarter. Hollencrest Capital Management now owns 1,050 shares of the company's stock valued at $36,000 after buying an additional 350 shares in the last quarter. WealthPlan Investment Management LLC grew its holdings in IREN by 3.7% during the 3rd quarter. WealthPlan Investment Management LLC now owns 11,190 shares of the company's stock valued at $457,000 after buying an additional 404 shares in the last quarter. Finally, Ascent Wealth Partners LLC grew its holdings in IREN by 2.6% during the 3rd quarter. Ascent Wealth Partners LLC now owns 15,866 shares of the company's stock valued at $649,000 after buying an additional 404 shares in the last quarter. Hedge funds and other institutional investors own 41.08% of the company's stock.

IREN Stock Performance

The company has a 50-day moving average price of $36.25 and a two-hundred day moving average price of $43.77. The stock 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 quick ratio of 3.55, a current ratio of 3.55 and a debt-to-equity ratio of 1.80.

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.

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