IREN Reports Fiscal Q4: AI Growth vs. Mining Decline

IREN Limited is scheduled to release its fourth-quarter fiscal 2026 results on August 27. Analysts project a notable year-over-year revenue decrease of 25.84%. The company's AI cloud services have shown strong momentum, with revenues nearly doubling sequentially in the prior quarter and expected to increase further. This growth is attributed to operational GPUs and contracted capacity.

Conversely, Bitcoin mining revenues are expected to have declined sequentially in the fourth quarter. This downturn in mining activity, partly due to decommissioning miners for GPU installations, is anticipated to temper the growth seen in AI cloud services. Management indicated that the significant AI ramp-up, including revenues from Microsoft and additional GPUs, is back-end weighted and will commence in the third calendar quarter of 2026.

Reported profitability may also be impacted by impairment charges. IREN recorded substantial non-cash impairments in the fiscal third quarter related to decommissioned mining hardware, with further charges anticipated as operations transition. Despite these pressures, the company significantly strengthened its funding during the fourth quarter, finalizing approximately $3.6 billion in financing for GPU acquisitions and closing a $3 billion convertible note offering.

IREN also raised its expected annualized run-rate revenues to $4.4 billion following a planned Blackwell deployment for an NVIDIA contract, though this is not expected to affect fiscal fourth-quarter revenues. The stock has returned 11.8% year-to-date, outperforming its industry, but has underperformed peers Applied Digital and TeraWulf. The company's valuation is considered stretched, with a Price/Sales ratio higher than its industry average.