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IREN Limited's Q3 Net Loss Widens Q/Q, Revenues Decline
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Key Takeaways
IREN Q3 revenues fell 21.6% sequentially to $144.8M, missing the $213M consensus.
IREN AI Cloud Services revenues jumped 94.2% sequentially to $33.6M.
IREN signed a 5-year, $3.4B AI cloud contract with NVIDIA tied to Blackwell GPUs.
IREN Limited (IREN - Free Report) reported third-quarter fiscal 2026 net loss of $247.8 million, wider than the net loss of $155.4 million in the previous quarter.
Total revenues decreased 21.6% sequentially to $144.8 million. The Zacks Consensus Estimate for IREN’s third-quarter fiscal 2026 revenues was pegged at $213 million.
IREN’s Q3 Operating Details
In the fiscal third quarter, bitcoin revenues were $111.2 million, down 33.6% sequentially. AI Cloud Services revenues were $33.6 million compared with $17.3 million in the previous quarter, reflecting sequential growth of 94.2%. Adjusted EBITDA was $59.5 million compared with $75.3 million in the previous quarter. The adjusted EBITDA margin of 41% remained flat on a sequential basis.
Third-quarter fiscal 2026 operating expenses came in at $338.4 million, up from 253.3 million incurred in the previous quarter.
IREN’s third-quarter results were weighed down by several sizable non-cash items tied to the ongoing hardware transition and financial instruments. A $140.4 million impairment charge was recorded in the third quarter, primarily related to the decommissioning of mining hardware. The quarter also included $23.7 million of unrealized losses on financial instruments associated with capped calls tied to convertible notes.
Depreciation and amortization expenses in the third quarter increased to $121.2 million, up from $99.2 million incurred in the prior quarter, while selling, general and administrative expenses were $81.8 million, down from $100.8 million incurred in the prior quarter.
IREN’s Balance Sheet Details
IREN had $2.21 billion in cash and cash equivalents as of March 31, 2026, compared with $3.26 billion as of Dec. 31, 2025.
Net cash provided by operating activities was $75.3 million in the third quarter of fiscal 2026.
IREN's Customer Momentum Expands With NVIDIA Deal
A major strategic development during the quarter was a new 5-year, $3.4 billion AI Cloud contract with NVIDIA for air-cooled Blackwell GPUs. IREN expects deployment within 60MW of existing data centers at its Childress site, with a targeted ramp beginning in early 2027.
IREN also entered a broader 5GW strategic partnership with NVIDIA to support the deployment of NVIDIA-aligned infrastructure across the company’s global data center pipeline. As part of the partnership, IREN issued NVIDIA a 5-year right to purchase up to 30 million ordinary shares at an exercise price of $70 per share, representing potential investment capacity of up to $2.1 billion, subject to conditions including regulatory approvals.
Operationally, the company reiterated that its 2026 build program remains on track for 480MW by year-end, with Horizons 1-4 progressing at Childress. It also highlighted 2027 expansion plans targeting 1,210MW in build, including additional phases at Childress and the initial phase at Sweetwater 1.
Shares of Broadcom have gained 19.2% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by 9 cents over the past 30 days, indicating an increase of 67.9% year over year.
Shares of Celestica have gained 30.3% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 3.4% over the past seven days, indicating an increase of 67.9% year over year.
Amphenol shares have jumped 1.1% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up by 11% over the past seven days, indicating an increase of 42.5% year over year.
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IREN Limited's Q3 Net Loss Widens Q/Q, Revenues Decline
Key Takeaways
IREN Limited (IREN - Free Report) reported third-quarter fiscal 2026 net loss of $247.8 million, wider than the net loss of $155.4 million in the previous quarter.
Total revenues decreased 21.6% sequentially to $144.8 million. The Zacks Consensus Estimate for IREN’s third-quarter fiscal 2026 revenues was pegged at $213 million.
IREN’s Q3 Operating Details
In the fiscal third quarter, bitcoin revenues were $111.2 million, down 33.6% sequentially. AI Cloud Services revenues were $33.6 million compared with $17.3 million in the previous quarter, reflecting sequential growth of 94.2%. Adjusted EBITDA was $59.5 million compared with $75.3 million in the previous quarter. The adjusted EBITDA margin of 41% remained flat on a sequential basis.
IREN Limited Price, Consensus and EPS Surprise
IREN Limited price-consensus-eps-surprise-chart | IREN Limited Quote
Third-quarter fiscal 2026 operating expenses came in at $338.4 million, up from 253.3 million incurred in the previous quarter.
IREN’s third-quarter results were weighed down by several sizable non-cash items tied to the ongoing hardware transition and financial instruments. A $140.4 million impairment charge was recorded in the third quarter, primarily related to the decommissioning of mining hardware. The quarter also included $23.7 million of unrealized losses on financial instruments associated with capped calls tied to convertible notes.
Depreciation and amortization expenses in the third quarter increased to $121.2 million, up from $99.2 million incurred in the prior quarter, while selling, general and administrative expenses were $81.8 million, down from $100.8 million incurred in the prior quarter.
IREN’s Balance Sheet Details
IREN had $2.21 billion in cash and cash equivalents as of March 31, 2026, compared with $3.26 billion as of Dec. 31, 2025.
Net cash provided by operating activities was $75.3 million in the third quarter of fiscal 2026.
IREN's Customer Momentum Expands With NVIDIA Deal
A major strategic development during the quarter was a new 5-year, $3.4 billion AI Cloud contract with NVIDIA for air-cooled Blackwell GPUs. IREN expects deployment within 60MW of existing data centers at its Childress site, with a targeted ramp beginning in early 2027.
IREN also entered a broader 5GW strategic partnership with NVIDIA to support the deployment of NVIDIA-aligned infrastructure across the company’s global data center pipeline. As part of the partnership, IREN issued NVIDIA a 5-year right to purchase up to 30 million ordinary shares at an exercise price of $70 per share, representing potential investment capacity of up to $2.1 billion, subject to conditions including regulatory approvals.
Operationally, the company reiterated that its 2026 build program remains on track for 480MW by year-end, with Horizons 1-4 progressing at Childress. It also highlighted 2027 expansion plans targeting 1,210MW in build, including additional phases at Childress and the initial phase at Sweetwater 1.
IREN’s Zacks Rank & Stocks to Consider
Currently, IREN carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom (AVGO - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Broadcom have gained 19.2% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by 9 cents over the past 30 days, indicating an increase of 67.9% year over year.
Shares of Celestica have gained 30.3% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 3.4% over the past seven days, indicating an increase of 67.9% year over year.
Amphenol shares have jumped 1.1% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up by 11% over the past seven days, indicating an increase of 42.5% year over year.