IREN's AI Pivot Gains Momentum as Mining Revenue Heads to Zero

IREN, a company undergoing a major business pivot from Bitcoin mining to AI cloud services, has reported its FY2026 Q4 earnings. The quarterly revenue of $137.2 million slightly beat market expectations, but the net loss of $684.0 million far exceeded forecasts due to large non-cash impairments from accelerating the shutdown of mining operations.

The company's AI cloud services revenue exceeded 50% for the first time, accounting for roughly 51% of total revenue, surpassing Bitcoin mining revenue. Signed ARR is expected to reach $4.0 billion in Q4, and operational ARR stood at $1.0 billion as of August 26, 2026, doubling from end-of-quarter levels.

The company's transition to AI cloud services has passed a critical threshold, with the business pivot showing significant progress in revenue mix, bookings, and capacity. However, adjusted EBITDA was only $19.2 million, indicating that margin pressure during the transition period has yet to ease.