| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 12 | — | 17.6x | Bottom tier | |
Growth | 83 | 41.1% | 7.1% | Top tier | |
Quality | 38 | -14.1% | 4.5% | Bottom tier | |
Safety | 26 | — | 2.6x | Bottom tier | |
Capital Return | 4 | 0.00% | 2.15% | Bottom tier | |
Momentum | 58 | 71.7% | 2.3% | Around median | |
Sentiment | 63 | 7 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
IREN Limited operates across three interconnected layers of digital infrastructure: data centers, including land, power, substations, and cooling; computing hardware, including graphics processing units, storage, and networking; and software, managed services, and enterprise support through Mirantis. The company generates revenue by providing AI cloud computing capacity under multi-year contracts, while Bitcoin mining revenue continues during the transition phase; however, it expects to effectively cease mining operations by the end of December 2026. Management believes that owning all three layers allows it to optimize returns from each megawatt and add higher-value services on top of the core infrastructure.
In Q4 of fiscal year 2026, revenue reached $137.2 million, of which $70.5 million came from the AI cloud, representing approximately 51.4% of total revenue. Revenue decreased by $7.6 million from the previous quarter due to mining equipment being shut down before graphics processing units were installed, partially offset by cloud growth; gross profit reached $103.9 million, equivalent to a gross margin of approximately 75.7%. The company recorded a net loss of $684.0 million, affected by non-cash impairment charges of $450.4 million, mostly related to the retirement of mining equipment, in addition to a $102.1 million decrease in the fair value of mining equipment held for sale.
In fiscal year 2026, IREN recorded revenue of $707.0 million and gross profit of $487.3 million, equivalent to a gross margin of approximately 68.9%, compared with a net loss of $702.6 million and a loss per share of $2.22. On August 27, 2026, the company said its allocated 2026 capacity was largely sold out, with $4 billion in contracted annual recurring revenue, of which $1 billion was operational following Microsoft's acceptance of Horizon 1. This means the investment story has shifted from Bitcoin mining to executing a massive capital expansion and converting cloud contracts into actual revenue and cash flows.
The analyst consensus is “Buy,” with an average price target of $84, a high of $100, and a low of $50; the average is approximately 9.3% above the 52-week high of $76.87. However, the absence of a usable price-to-earnings ratio, due to the fiscal year 2026 loss of $702.6 million, makes valuation dependent on successfully executing the $4 billion in contracted annual recurring revenue and financing a fiscal year 2027 capital expenditure plan ranging from $25 billion to $30 billion, while the wide spread of targets between $50 and $100 reflects significant differences in assessments of execution and profitability risks.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Management said on the August 27, 2026 call that demand for physical infrastructure is not keeping pace with growth in AI model usage, citing an approximately 17-fold increase over eight months in token usage across eight models tracked by OpenRouter. IREN is leveraging the land, power, and data centers it owns to install graphics processing units and add Mirantis services on top. In Q4 of fiscal year 2026, AI cloud revenue reached $70.5 million out of total revenue of $137.2 million. The company expects to effectively cease mining operations by the end of December 2026.
IREN delivered Horizon 1 to Microsoft in August 2026, the first of four liquid-cooled phases with 50 megawatts of capacity per phase in Childress, Texas. The company targeted delivery of Horizon 2, Horizon 3, and Horizon 4 during the December 2026 quarter, making execution a direct factor in reaching more than $4 billion in contracted annual recurring revenue. Horizon 1 received the NVIDIA Exemplar Cloud designation using GB300 NVL72, demonstrating IREN's ability to integrate and operate the complete platform. The company also financed the graphics processing units related to the Microsoft contract through $3.6 billion of financing at a weighted average cost of approximately 6%, and together with prepayments, approximately 96% of the related capital expenditure was covered.
Automated analysis for informational purposes only — not investment advice.
The net loss reached $684.0 million in Q4 of fiscal year 2026 despite gross profit of $103.9 million. The largest factor was $450.4 million in non-cash impairment charges, mostly related to the retirement of mining equipment as part of the transition to the AI cloud. The company also recorded a $102.1 million decrease in the fair value of mining equipment held for sale. For fiscal year 2026, the net loss reached $702.6 million and the loss per share was $2.22.
The company expects capital expenditure ranging from $25 billion to $30 billion in fiscal year 2027 to cover Microsoft capacity, the remainder of its 2026 deployments, 2027 projects, and early investments beyond that. It reported approximately $14 billion in cash, graphics processing unit financing, and committed prepayments, including $7.6 billion in cash as of June 30, 2026, of which $1.7 billion was mostly restricted to financing Microsoft graphics processing units. It is also targeting approximately $8 billion in additional graphics processing unit financing and prepayments. It intends to cover the remainder through data center financing, operating cash flows, and institutional sources, with its entire data center portfolio remaining unencumbered as of August 27, 2026.
The contracts announced through August 27, 2026 included Cohere, Prometheus, Perplexity, Figure AI, Fal AI, Higgsfield AI, an undisclosed leading AI laboratory, and Microsoft. Together AI and Fireworks AI also renewed and expanded their contracts, providing stronger operational evidence than merely adding new names. However, management acknowledged that the company began with a high concentration of large customers because they provided the fastest path to scale. Therefore, diversifying allocated capacity for 2027 and 2028 among hyperscalers, enterprises, AI developers, and advanced laboratories remains a key part of reducing concentration risk.
