IREN Stock Forecast & Price Target

IREN Ltd reported a substantial increase in total revenue, achieving $240.3 million in FQ1, representing a 355% year-over-year growth driven by an operating hashrate of 50 EH/s and favorable spot prices. The company anticipates further financial enhancement, projecting increases in revenue and AEBITDA for FY26 and FY27, with expected growth of approximately $870 million and $785 million, respectively, indicating a robust upward trajectory. Additionally, IREN's EBITDA saw immense growth at $91.5 million, reflecting a 36-fold increase compared to the previous year, underscoring the company’s strong performance in the Bitcoin mining and AI Cloud Services sectors.

IREN Ltd is facing significant financial challenges due to an increase in depreciation, which has negatively impacted its earnings per share (EPS), leading to a downgrade from a previous buy rating. The potential failure to renew crucial contracts could elevate power costs, threatening the profitability of IREN’s mining operations and overall economic viability. Additionally, disruptions in the global supply chain and dependence on major companies such as Microsoft pose risks to IREN's ability to sustain its operations and the anticipated returns from its AI cloud business model, highlighting vulnerabilities in its growth strategy.