IREN Stock Tumbles on Q4 Miss, Despite Bullish AI Outlook
IREN Ltd., a bitcoin miner and AI infrastructure company, saw its stock plummet more than 8% in overnight trading after reporting quarterly earnings and revenue below Wall Street expectations. The company's shift towards AI cloud services is gaining momentum, with AI Cloud Services revenue rising to $70.5 million in the quarter from $33.6 million in the sequentially prior quarter.
IREN's fiscal fourth-quarter revenue of $137.2 million fell short of analyst consensus of $157.14 million, while adjusted loss came in at $0.41 per share, wider than expectations of a $0.34 per share loss. The company reported a net loss of $684 million in Q4, compared with a loss of $247.8 million in Q3.
However, management was bullish on the AI opportunity, citing 'exponential AI consumption growth' and 'compute capacity well beyond the available supply of infrastructure.' IREN's 2026 capacity is 'largely sold out,' including Horizon 1, the first of four liquid-cooled GPU deployments delivered to Microsoft this month.
The company has signed new multi-year contracts with several leading AI labs, including a recent agreement with Cohere. Retail sentiment for IREN was 'extremely bullish' before the earnings release, but shares remain down year-to-date by 7.3%, compared to a 161% gain in Nebius.