IREN Stock Forecast & Price Target

IREN Ltd reported a remarkable increase in total revenue for FQ1, reaching $240.3 million, which represents a 355% year-over-year growth driven by a robust operating hashrate of 50 EH/s and favorable spot prices. The company's adjusted EBITDA is projected to rise significantly, with increases estimated at approximately $870 million and $785 million for FY26 and FY27, respectively, highlighting strong financial momentum. Furthermore, IREN's expansion into AI Cloud Services has begun to contribute positively, as evidenced by a slight revenue increase in that segment, indicating a diversification strategy that could enhance long-term growth potential.

IREN Ltd faces significant challenges that contribute to a negative outlook on its stock. The company's earnings per share have declined due to notably higher depreciation charges, leading to a reassessment of its investment potential, marked by a downgrade to an out-of-consensus Sell rating. Additionally, vulnerabilities such as reliance on contract renewals for favorable power costs, potential disruptions in supply chains, and uncertainties regarding the sustainability of key partnerships pose risks that could adversely impact IREN's financial results and overall business viability.