IREN Limited (IREN) Earnings & Analysis

Latest quarter

IREN reported Q4 FY2026 revenue of $137.2 million, above the consensus estimate of $120.9 million. Adjusted EPS, as counted by the consensus, was −$0.41, compared with an expected −$0.50.

Revenue fell −26.7% from $187.3 million a year earlier as IREN shifted from Bitcoin mining toward AI cloud services. AI cloud revenue reached $70.5 million, or 51.4% of the quarterly total. IREN reported diluted EPS of −$2.16, compared with $0.66 a year earlier.

The company’s gross margin rose to 75.7% from 71.8%, while its operating margin fell to −586.0% from 10.7%. Adjusted EBITDA was $19.2 million, down from $59.5 million in the March quarter. Free cash flow was $483.2 million, compared with −$79.8 million a year earlier.

For the full fiscal year, IREN’s filing attributed impairment charges primarily to mining hardware and equipment displaced as it expanded AI cloud services.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On the earlier Q3 FY2026 call, co-CEO Daniel Roberts said all of IREN’s operational capacity was contracted and that bringing compute online, rather than signing contracts alone, was necessary to generate revenue. He said the company was discussing capacity with customers ranging from hyperscalers to AI-native labs.

Asked about future demand, chief revenue officer Kent Draper said customers were finding capacity scarce for 2027 and 2028. Roberts said negotiations became easier when IREN could present a defined construction and delivery plan. On the NVIDIA contract, Draper described the deployment as managed services and said approximately 60 megawatts of air-cooled Blackwells were being deployed; he declined to provide a GPU count.

Draper also addressed questions about pricing and margins. He said customers were finding a balance of performance and cost in air-cooled Blackwell GPUs. Retrofitting existing air-cooled data centers required less capital expenditure than building new liquid-cooled facilities, he said, while the operating-margin difference was small. Draper added that pricing for some older-generation GPUs had risen as demand continued for both training and inference.

Roberts said IREN had signed a $3.54 billion five-year AI cloud contract with NVIDIA. He said IREN was converting existing capacity for AI workloads and building liquid-cooled capacity at Childress. Draper said Mirantis brought software-development and customer-support capabilities that could help IREN serve enterprise customers.

Chief financial officer Anthony Lewis said IREN expected cash, operating cash flows, GPU financing and additional financing initiatives to support near-term capital spending. He said approximately 95% of Microsoft GPU-related capital expenditure was expected to be funded through prepayments and GPU financing. Lewis also said he expected Microsoft revenue and revenue from additional GPUs procured during the quarter to begin ramping in Q3 2026.

Guidance

On the earlier Q3 FY2026 call, Roberts targeted 480 megawatts of AI cloud capacity, 150 thousand GPUs and $3.7 billion of annual recurring revenue by the end of calendar 2026. Lewis said he expected that revenue ramp to be back-end weighted.