IREN Eyes $4 Billion ARR as AI Cloud Business Replaces Bitcoin Mining

IREN Limited (NASDAQ:IREN) shares are trading lower premarket on Thursday after the company reported weaker-than-expected fourth quarter fiscal 2026 results.

Earnings Snapshot

The company reported an adjusted loss per share of 74 cents, missing the analyst estimate of a loss of 49 cents. Revenue of $137.2 million missed the $142.32 million consensus estimate.

Revenue declined $7.6 million sequentially as IREN decommissioned mining hardware ahead of GPU installations.

The company reported a $684 million net loss, mainly reflecting $450.4 million of non-cash impairments, largely related to mining hardware decommissioning, and a $102.1 million decline in the fair value of mining hardware held for sale.

Strong Cloud Deal

The company signed multi-year cloud agreements with Cohere, Prometheus, Perplexity, Figure AI, Higgsfield AI and an undisclosed leading frontier AI lab. IREN delivered Horizon 1 to Microsoft, its first 50-MW deployment, with Horizons 2–4 expected in the December quarter.

IREN expects mining operations to be effectively decommissioned by the end of December 2026.

The company exited the fourth quarter with about $500 million of ARR, which rose to $1 billion after Microsoft accepted Horizon 1. This excludes 2027 revenue ramps such as the $700 million ARR tied to Nvidia Cloud contract deliveries.