We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for IREN’s fiscal first-quarter revenues is currently pegged at $219.95 million, indicating an 8.46% year-over-year decline. The consensus mark for the bottom line is currently pegged at a loss of 49 cents, deteriorating by 3 cents over the past 30 days. This also indicates a wider loss than the 34 cents per share reported in the year-ago quarter.
Image Source: Zacks Investment Research
Over the last four quarters, the company has surpassed the Zacks Consensus Estimate in one quarter and missed in the remaining three periods. This is depicted in the graph below.
Our proven model does not conclusively predict an earnings beat for IREN this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
IREN has an Earnings ESP of +23.97% and a Zacks Rank #4 (Sell).
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Key Factors to Watch Ahead of IREN’s Q1 Fiscal 2027 Results
IREN Limited is likely to have faced a mixed fiscal first quarter of 2027 as its shift from bitcoin mining to AI cloud services continued. While new GPU capacity expected lifted cloud revenues, mining withdrawals and rising operating costs is likely to have restricted overall earnings improvement. The company reported revenues of $137.2 million in the fourth quarter of fiscal 2026.
Microsoft's acceptance of the 50-megawatt Horizon 1 deployment in August is likely to have boosted AI cloud services revenues during the quarter. Management had expected operating annualized run-rate revenue (ARR) to remain near $1 billion through September. Still, the partial-quarter contribution means recognized revenue could be considerably below this annualized metric.
Bitcoin mining likely remained a drag. Mining revenues had fallen from $111.2 million in March to $66.7 million in June as the company removed hardware. Management had targeted an effective mining shutdown by December 2026, suggesting a further decline in September-quarter mining revenues, potentially offsetting cloud services growth.
Meanwhile, higher spending likely pressured margins. IREN projected a sequential $40-$50 million rise in first-quarter cash SG&A expenses, reflecting hiring, marketing, research, development and operations ahead of revenue growth. With adjusted EBITDA already declining from $59.5 million in March to $19.2 million in June, the company is likely to have struggled to maintain profitability.
The August acquisition of Mirantis could have added software-related expenses and integration complexity, although its immediate revenue contribution remains uncertain. Major remaining GPU deployments, including Horizons 2-4, were scheduled for December rather than September. Consequently, investors need to focus on recognized cloud revenues, mining declines, cost trends and potential impairment charges.
IREN Stock Price Performance
IREN shares have declined 43.7% in the year-to-date period, wider than the broader Zacks Financial - Miscellaneous Services industry’s decline of 17.6%.
Compared with its peers, IREN has underperformed Applied Digital (APLD - Free Report) and TeraWulf (WULF - Free Report) . Year to date, shares of Applied Digital have declined 33.9%, while TeraWulf have inched up 0.1%.
Image Source: Zacks Investment Research
IREN Stock Valuation
In terms of forward 12-month price/sales, IREN is trading at 2.02X, lower than the Zacks Financial - Miscellaneous Services industry’s 2.58X. IREN has a Value Score of D.
Image Source: Zacks Investment Research
Compared with its peers, IREN Limited has a lower P/S multiple than Applied Digital and TeraWulf. At present, Applied Digital and TeraWulf trade at forward 12-month Price/Sales ratios of 4.26 and 8.51, respectively.
Conclusion
IREN's AI cloud expansion provides a growing source of revenue beyond bitcoin mining, with Microsoft's Horizon 1 acceptance supporting stronger quarterly activity. Nevertheless, the September-quarter earnings outlook remains challenging. Mining revenues are likely to have declined faster than new cloud deployments could replace it, while management's projected $40-$50 million sequential increase in cash SG&A expenses is likely to have affected operating margins.
The Mirantis acquisition may enhance service capabilities, but integration demands and share issuance add near-term uncertainty. Although existing customer prepayments and GPU financing help fund expansion, substantial investment requirements, debt servicing and execution risks persist. Until operating results demonstrate stronger earnings conversion and more consistent cost control, reducing exposure appears prudent over the near term.
View the Zacks #1 Rank List
Image: Bigstock
IREN to Report Q1 Earnings: Should You Buy, Sell or Hold the Stock?
Key Takeaways
IREN Limited (IREN - Free Report) is set to report its first-quarter fiscal 2027 results on Nov. 5, after the market close.
The Zacks Consensus Estimate for IREN’s fiscal first-quarter revenues is currently pegged at $219.95 million, indicating an 8.46% year-over-year decline. The consensus mark for the bottom line is currently pegged at a loss of 49 cents, deteriorating by 3 cents over the past 30 days. This also indicates a wider loss than the 34 cents per share reported in the year-ago quarter.
Image Source: Zacks Investment Research
Over the last four quarters, the company has surpassed the Zacks Consensus Estimate in one quarter and missed in the remaining three periods. This is depicted in the graph below.
IREN Limited Price and EPS Surprise
IREN Limited price-eps-surprise | IREN Limited Quote
Earnings Whispers for IREN Limited Stock
Our proven model does not conclusively predict an earnings beat for IREN this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
IREN has an Earnings ESP of +23.97% and a Zacks Rank #4 (Sell).
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Key Factors to Watch Ahead of IREN’s Q1 Fiscal 2027 Results
IREN Limited is likely to have faced a mixed fiscal first quarter of 2027 as its shift from bitcoin mining to AI cloud services continued. While new GPU capacity expected lifted cloud revenues, mining withdrawals and rising operating costs is likely to have restricted overall earnings improvement. The company reported revenues of $137.2 million in the fourth quarter of fiscal 2026.
Microsoft's acceptance of the 50-megawatt Horizon 1 deployment in August is likely to have boosted AI cloud services revenues during the quarter. Management had expected operating annualized run-rate revenue (ARR) to remain near $1 billion through September. Still, the partial-quarter contribution means recognized revenue could be considerably below this annualized metric.
Bitcoin mining likely remained a drag. Mining revenues had fallen from $111.2 million in March to $66.7 million in June as the company removed hardware. Management had targeted an effective mining shutdown by December 2026, suggesting a further decline in September-quarter mining revenues, potentially offsetting cloud services growth.
Meanwhile, higher spending likely pressured margins. IREN projected a sequential $40-$50 million rise in first-quarter cash SG&A expenses, reflecting hiring, marketing, research, development and operations ahead of revenue growth. With adjusted EBITDA already declining from $59.5 million in March to $19.2 million in June, the company is likely to have struggled to maintain profitability.
The August acquisition of Mirantis could have added software-related expenses and integration complexity, although its immediate revenue contribution remains uncertain. Major remaining GPU deployments, including Horizons 2-4, were scheduled for December rather than September. Consequently, investors need to focus on recognized cloud revenues, mining declines, cost trends and potential impairment charges.
IREN Stock Price Performance
IREN shares have declined 43.7% in the year-to-date period, wider than the broader Zacks Financial - Miscellaneous Services industry’s decline of 17.6%.
Compared with its peers, IREN has underperformed Applied Digital (APLD - Free Report) and TeraWulf (WULF - Free Report) . Year to date, shares of Applied Digital have declined 33.9%, while TeraWulf have inched up 0.1%.
Image Source: Zacks Investment Research
IREN Stock Valuation
In terms of forward 12-month price/sales, IREN is trading at 2.02X, lower than the Zacks Financial - Miscellaneous Services industry’s 2.58X. IREN has a Value Score of D.
Image Source: Zacks Investment Research
Compared with its peers, IREN Limited has a lower P/S multiple than Applied Digital and TeraWulf. At present, Applied Digital and TeraWulf trade at forward 12-month Price/Sales ratios of 4.26 and 8.51, respectively.
Conclusion
IREN's AI cloud expansion provides a growing source of revenue beyond bitcoin mining, with Microsoft's Horizon 1 acceptance supporting stronger quarterly activity. Nevertheless, the September-quarter earnings outlook remains challenging. Mining revenues are likely to have declined faster than new cloud deployments could replace it, while management's projected $40-$50 million sequential increase in cash SG&A expenses is likely to have affected operating margins.
The Mirantis acquisition may enhance service capabilities, but integration demands and share issuance add near-term uncertainty. Although existing customer prepayments and GPU financing help fund expansion, substantial investment requirements, debt servicing and execution risks persist. Until operating results demonstrate stronger earnings conversion and more consistent cost control, reducing exposure appears prudent over the near term.