IREN Stock Rises Amid AI Growth and Heavy Losses

IREN Limited (ISIN AU0000185993) saw its stock rise by 2.73% on October 2, 2026, closing at USD 41.76 on the Nasdaq. This gain came despite the company reporting a significant net loss of USD 702.6 million for fiscal 2026, which ended on June 30. The loss was primarily due to USD 638.8 million in non-cash impairment charges related to retired bitcoin-mining equipment. However, revenue for the year increased by 41.1% to USD 707.0 million, up from USD 501.0 million in fiscal 2025.

The shift in IREN's business model from bitcoin mining to AI cloud services was evident in the June quarter results. Quarterly revenue reached USD 137.2 million, with USD 70.5 million coming from AI Cloud Services, surpassing bitcoin-mining revenue of USD 66.7 million. The company entered fiscal 2027 with USD 4.0 billion of contracted annual recurring revenue for its 2026 capacity, including USD 1.0 billion already operating.

Despite the positive revenue growth, the company's stock remains volatile. IREN's market capitalization stood at USD 16.5 billion on October 2, 2026, with a 52-week range of USD 28.93 to USD 76.87. Trading volume for the day reached 41,744,023 shares, indicating strong investor interest. Analysts have a Moderate Buy consensus on the stock, with an average price target of USD 81.13, which is 94.3% above the current closing price.

Recent analyst actions highlight the mixed sentiments surrounding IREN. On September 14, 2026, JPMorgan upgraded IREN from Underweight to Overweight and raised its price target from USD 46 to USD 65. This upgrade followed IREN's increase in its annual recurring revenue target from USD 3.4 billion to USD 4.0 billion. The stock's performance continues to reflect the tension between accelerating AI revenue and the company's substantial losses and capital requirements.