IREN Reports FY2026 Results: AI Cloud Revenue Up ~8x, $639M Write-Down Hits Bottom Line

IREN Limited (NASDAQ: IREN) reported fiscal year 2026 results marked by an ~8x expansion in AI Cloud Services revenue to $128.8 million, while $638.8 million in non-cash impairments tied to Bitcoin mining hardware decommissioning drove a full-year GAAP net loss of $702.6 million. For the quarter ended June 30, 2026, GAAP EPS of $(0.41) beat the consensus estimate of $(0.53), even as total Q4 revenue of $137.2 million missed the $142.3 million analyst consensus by 3.60 percent.

Q4 and FY2026 Financial Results

• Q4 revenue: $137.2 million, split between AI Cloud Services ($70.5 million) and Bitcoin Mining ($66.7 million), versus $144.8 million in the prior quarter ended March 31, 2026.
• Full-year FY2026 revenue: $707.0 million, up from $501.0 million in FY2025, a 41.1% increase, driven by AI Cloud Services scaling from $16.4 million to $128.8 million.
• Q4 GAAP net loss: $(684.0) million, including $(450.4) million in non-cash impairments from Bitcoin mining hardware decommissioning as sites convert to AI Cloud infrastructure.
• Q4 Adjusted EBITDA: $19.2 million, down from $59.5 million in Q3 FY2026, reflecting increased employee-related costs and platform investment ahead of the AI Cloud Services revenue ramp.
• Full-year Adjusted EBITDA: $245.7 million, compared to $269.7 million in FY2025.

What Drove the Results

The central divergence in IREN's results is the gap between revenue growth and reported profitability. Q4 GAAP EPS of $(0.41) beat the $(0.53) consensus, but total Q4 revenue of $137.2 million missed the $142.3 million estimate by 3.60 percent. The full-year net loss of $(702.6) million reversed FY2025 net income of $86.9 million, with $638.8 million in non-cash charges representing the cost of retiring Bitcoin mining hardware as the company pivots its physical infrastructure toward AI workloads.

Adjusted EBITDA compression in Q4, from $59.5 million to $19.2 million sequentially, reflected deliberate investment: headcount nearly tripled in FY2026, and the company completed five C-suite appointments alongside the acquisitions of Mirantis and Nostrum. These costs precede the AI Cloud revenue ramp that the company projects will materialize as contracted capacity comes online.

On the demand side, IREN disclosed a contracted annualized run-rate revenue figure of $4 billion targeted to be operational by December 31, 2026, with operating ARR already at $1 billion as of August 26, 2026. The company signed new multi-year AI Cloud contracts with customers including Cohere, Prometheus, Perplexity, Figure AI, Fal AI, Higgsfield AI, and a new unnamed frontier AI lab. Recent three-year contracts have been priced above $20 million in revenue per megawatt of IT capacity, with active discussions ongoing at approximately $25 million per megawatt.

Horizon 1, the first of four 50MW liquid-cooled deployments at the Childress site, was delivered to Microsoft during the period, with Horizon 2 commissioning underway and Horizons 3 and 4 targeting delivery in Q4 2026. The company also reported $2.8 billion in new GPU financings supporting non-investment grade customer deployments, including a $2.4 billion facility led by Blue Owl and Pacific Investment Management Company at a 9.0% fixed rate, funding 90% of associated GPU capital expenditure for the Mackenzie air-cooled expansion.

Wall Street View

Analyst sentiment on IREN remains constructive heading into the AI Cloud ramp. As of August 1, 2026, the consensus included 7 Strong Buy ratings, 10 Buy ratings, and 4 Hold ratings, with 1 Sell. Specific price target changes in response to the FY2026 results were not available in the source data.

Investor Takeaway

The FY2026 results crystallize the central investment question for IREN: the Bitcoin mining write-downs are a one-time structural cost of the AI pivot, but the $245.7 million in full-year Adjusted EBITDA versus the GAAP net loss of $702.6 million illustrates how large those transition costs are relative to current operating output. The more forward-looking signal is the $4 billion contracted ARR target for year-end 2026, which, if achieved, would represent a revenue base roughly five times FY2026's total AI Cloud Services revenue of $128.8 million. Shares gained 2.40% on Thursday, August 27, 2026, while the S&P 500 rose 0.66%, as investors weighed the EPS beat against the revenue miss and the scale of the AI infrastructure buildout ahead.