IREN Stock Forecast & Price Target

IREN Ltd demonstrated a substantial increase in its financial performance, reporting total revenue of $240.3 million in FQ1, which reflects an impressive 355% year-over-year growth supported by a robust operating hashrate of 50 EH/s and rising Bitcoin spot prices. The company's EBITDA also saw significant growth, reaching $91.5 million, which is a remarkable increase of approximately 36 times year-over-year, indicating strong operational efficiency and profitability. Moreover, forecasts suggest that both revenue and Adjusted EBITDA will continue their upward trajectory, with projected increases of approximately $870 million and $785 million in FY27, highlighting the company's solid positioning in the rapidly growing sectors of Bitcoin and AI.

IREN Ltd's financial outlook is negatively impacted by a significant decline in earnings per share (EPS) due to much higher depreciation costs, leading to a downgrade from a previously positive rating. The company's reliance on contract renewals for power supply raises concerns, as failure to secure these renewals could dramatically increase operational costs and adversely affect its mining economics. Additionally, potential disruptions in global supply chains and inflationary pressures on equipment procurement could delay operations, further jeopardizing IREN's financial stability and growth prospects in both Bitcoin mining and its AI cloud business model.