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IREN Shares Slip 12% on Q1 Earnings Miss, Revenues Rise Q/Q

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Key Takeaways

  • IREN reported Q1 EPS of $0.01, missing estimates, while revenues rose 28.3% sequentially to $240.3M.
  • Bitcoin revenues climbed 29.1% Q/Q, supported by fleet efficiency and low power costs per kilowatt hour.
  • IREN aims for a $3.4B AI Cloud run-rate by 2026, backed by Microsoft contracts and GPU expansion in Canada.

IREN Limited (IREN - Free Report) shares lost 12.4% on Thursday after the company reported weaker-than-expected earnings for the first quarter of fiscal 2026. IREN reported first-quarter fiscal 2026 earnings of 1 cent per share, which missed the Zacks Consensus Estimate of 14 cents. 

The company registered a net earnings of $384.6 million against the previous quarter’s loss of $176.9 million.

Total revenues increased 28.3% sequentially to $240.3 million and beat the consensus mark by 8.83%.

IREN shares have returned a whopping 581.9% year to date, outperforming the broader Zacks Finance sector’s growth of 13.2%.

IREN’s Q1 Operating Details

In the fiscal first quarter, bitcoin revenues were $232.9 million, up 29.1% sequentially. AI Cloud Services revenues were $7.3 million compared with $7.0 million in the previous quarter.

IREN Limited Price, Consensus and EPS Surprise

IREN Limited Price, Consensus and EPS Surprise

IREN Limited price-consensus-eps-surprise-chart | IREN Limited Quote

IREN’s best-in-class fleet efficiency at 15 joules per terahash and low net power costs of $0.046 per kilowatt hour in the fiscal first quarter benefited the bitcoin business. IREN mined 2,039 bitcoins in the reported quarter.

 

Adjusted EBITDA was $91.7 million compared with $121.9 million in the previous quarter. The adjusted EBITDA margin contracted to 38% from 65% in the previous quarter.

First-quarter fiscal 2026 operating expenses increased to $236 million due to higher SG&A expenses and depreciation costs associated with IREN’s expanded data center platform and increased expenses related to stock-based compensation and GPU infrastructure.

IREN’s Balance Sheet Details

IREN had $1.03 billion in cash and cash equivalents as of Sept. 30, 2025, compared with $564.5 million at the end of the previous quarter.

The company has secured $400 million in total GPU financing, including an additional $200 million tranche, and issued $1 billion in zero-coupon convertible notes in October 2025 to strengthen liquidity and fund growth initiatives.

IREN Offers Positive Guidance

IREN is targeting $3.4 billion in annualized AI Cloud revenue run-rate by the end of 2026, including approximately $1.9 billion from its Microsoft contract and $1.5 billion from its British Columbia GPU deployments.

IREN continues to advance its transition in British Columbia (160 MW) from bitcoin mining to AI operations, including liquid-cooled data center deployments at Prince George, Mackenzie, and Canal Flats

Zacks Rank & Stocks to Consider

Currently, IREN carries a Zacks Rank #5 (Strong Sell).

Reddit Inc. (RDDT - Free Report) , Credo Technology Group (CRDO - Free Report) and Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Impinj, Credo Technology Group and Amphenol sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Reddit Inc.’s full-year 2025 earnings is pegged at $2.01 per share, revised upward by 6.9% over the past seven days and suggests a year-over-year increase of 160.4%. Reddit shares have soared 14.9% year to date.

The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by a cent over the past 30 days to $2.04 per share, calling for an increase of 191.4% year over year. Credo Technology Group shares have rallied 144.3% year to date.

The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $3.22 per share from $3.03 per share over the past 30 days, implying 70.4% year-over-year growth. Amphenol shares have risen 96.8% year to date.

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