IREN Stock Forecast & Price Target

IREN Ltd reported substantial financial growth in FQ1 with total revenue reaching $240.3 million, marking a remarkable 355% year-over-year increase, primarily driven by an operating hashrate of 50 EH/s and favorable spot prices. The company also demonstrated a significant rise in EBITDA, amounting to $91.5 million, which experienced a dramatic 36-fold year-over-year growth. Additionally, forecasts indicate that revenue and adjusted EBITDA are expected to increase notably in FY26 and FY27, with revenue projected to rise by approximately $870 million and EBITDA by about $785 million, underscoring IREN's strong operational outlook in the data center sector supporting Bitcoin and AI initiatives.

IREN Ltd faces significant financial challenges that contribute to a negative outlook for its stock. The company's earnings per share (EPS) has declined due to substantially higher depreciation expenses, which indicates potential issues in asset value or operational efficiency. Additionally, the reliance on renewable energy contracts, coupled with uncertainties surrounding global supply chain disruptions and inflation, poses risks that could adversely affect IREN’s ability to sustain profitable mining operations and expand its AI cloud business model.