IREN stock slumps after Q4 miss as AI cloud revenue surges
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IREN Stock Drops After Q4 Miss
Shares of IREN Ltd. fell more than 8% in overnight trading after the bitcoin miner and AI infrastructure company reported weaker-than-expected fiscal fourth-quarter results. (Sources: IREN Investor Relations)
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Revenue Falls Short of Estimates
IREN reported fiscal Q4 revenue of $137.2 million, below Wall Street’s consensus estimate of $157.14 million. The revenue decline reflected the company’s ongoing transition away from Bitcoin mining toward AI Cloud services.
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Adjusted Loss Wider Than Expected
The company reported an adjusted loss of $0.41 per share, compared with analysts’ expectation of a $0.34 per-share loss. The weaker results added pressure to the stock following its recent AI-driven rally.
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AI Cloud Revenue Surges
Despite the overall revenue miss, IREN’s AI Cloud business continued to expand rapidly. AI Cloud revenue reached $70.5 million in the June quarter, helping offset some of the decline in Bitcoin mining revenue.
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Transition From Bitcoin Mining Accelerates
IREN said its quarterly results continued to reflect the transition to AI Cloud. Mining hardware is being decommissioned ahead of GPU installations, with the company expecting its mining operations to be effectively decommissioned by December 2026.
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AI Cloud ARR Crosses $1 Billion
IREN exited the June quarter with roughly $500 million of ARR, which had risen to about $1 billion following Microsoft’s acceptance of Horizon 1. The company expects AI Cloud ARR to exceed $4 billion by the end of December 2026.
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$4 Billion ARR Already Contracted
IREN said its more than $4 billion ARR target is already contracted, with Horizons 2–4 expected to contribute to the December-quarter run rate. The company also said its 2026 capacity is largely sold out, while 2027 and beyond provide additional expansion runway.
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Heavy Spending Remains a Key Risk
The AI expansion comes with significant capital requirements. IREN expects FY2027 capital expenditure of around $25 billion-$30 billion, while first-quarter cash SG&A is expected to rise by $40 million-$50 million sequentially. Investors are therefore weighing rapid AI growth against high execution and funding costs.