IREN wrapped fiscal 2026 with $4 billion in contracted cloud revenue, proof of how far the company has moved from Bitcoin mining toward becoming an AI cloud provider. That milestone sat next to a $684 million net loss for the fourth quarter, and shares dropped about 6% in after-hours trading once the numbers came out Thursday.
Revenue for the quarter fell 27% year-over-year to $137.2 million, missing the $153.2 million Wall Street expected. The two sides of the business moved in opposite directions. AI Cloud Services revenue jumped to $70.5 million from just $7 million a year earlier, while Bitcoin Mining revenue collapsed 63% to $66.7 million. Adjusted EBITDA came in at $19.2 million, well below the $57.1 million analysts had projected and a steep drop from $121.9 million a year ago, the visible cost of running two very different businesses at once mid-transition.
Co-CEO Daniel Roberts framed the company’s cloud strategy around owning the full stack, land, power, data centers, compute equipment, and the software layer tying it together, as the reason IREN can capture more value as AI cloud demand grows. “Signing deals is not the bottleneck in this market,” he said. “Bringing GPUs online is.”
Microsoft remains IREN’s biggest cloud customer. Earlier this month, Microsoft accepted Horizon 1, the first of four planned 50-megawatt AI cloud deployments at IREN’s Childress, Texas site, and that acceptance alone brought roughly $1 billion of the $4 billion cloud revenue figure into active operation. IREN also earned Nvidia Exemplar Cloud status for its GB300 NVL72 deployment there, a certification Nvidia grants to a small group of providers running its top-tier hardware.
Analysts remain split on what the cloud pivot is actually worth. Bernstein’s Gautam Chhugani kept an Outperform rating and a $100 price target, arguing IREN’s customer mix, tilted toward AI labs and enterprises rather than hyperscalers, gives it room to earn far more per megawatt than a typical cloud colocation provider. J.P. Morgan’s Richard Choe disagreed, rating the stock a Sell and pointing to IREN’s roughly $4 billion debt load along with the risk that Nvidia GPU shortages slow the buildout.
Most coverage still leans bullish: seven of ten analysts recommend buying, two rate it a Hold, and one calls it a Sell. The bigger test comes next, whether IREN can convert cloud revenue into real profit while spending $25 billion to $30 billion on capacity through fiscal 2027.
