TLDR
- IREN stock fell 4.9% to $39.81 on Monday, with trading volume down 27% from average
- The company reports full-year FY26 earnings after market close on Thursday, August 27
- IREN signed $2.8B in new AI cloud deals in July, raising its 2026 annual revenue target above $4B
- New contracts require customers to pay 45% of chip equipment costs upfront
- Wall Street holds a Moderate Buy consensus with an average price target of $77.89
IREN stock dropped 4.9% to $39.81 on Monday, closing the prior session at $41.88. Trading volume came in at around 31.2 million, about 27% below the daily average. The move comes just days before the company’s full-year FY26 earnings release, due after market close on Thursday, August 27.
The company has a market cap of $14.23 billion and a beta of 4.29, meaning it tends to swing hard in both directions.
$2.8B in AI Cloud Deals Push Revenue Target Past $4B
In July, IREN signed $2.8 billion worth of multi-year AI cloud contracts. That news prompted management to raise its 2026 annual revenue target to more than $4 billion. The new deals also require customers to pay roughly 45% of chip equipment costs upfront, giving IREN a cash boost to fund ongoing site expansion.
On August 13, IREN delivered its Horizon 1 data center to Microsoft. The company also earned Nvidia Exemplar Cloud status for its GB300 NVL72 system. IREN closed its acquisition of cloud software firm Mirantis on August 4, adding more tools to its AI hosting business.
Earlier, IREN secured a $9.7 billion contract with Microsoft and a $3.4 billion deal with Nvidia, cementing its position as a major AI infrastructure partner.
In June, IREN bought Nostrum Group to push its AI cloud footprint into Europe. It was also added to the Russell 1000 Index in late June, drawing more attention from institutional buyers.
What Wall Street Expects From Earnings
For the final quarter of FY26, analysts expect quarterly revenue near $132 million. They also project a loss of $0.55 per share, largely due to heavy spending on new site builds and chip purchases. In the previous quarter, IREN posted a loss of $0.33 per share.
Investors will be watching cash flow timing from the Microsoft project, future chip buying plans, and how fast those recent big deals start converting into steady revenue.
On the analyst front, HC Wainwright raised its price target from $85 to $90 and kept a Buy rating. Goldman Sachs held its Neutral stance. Weiss Ratings downgraded the stock from Hold to Sell. Compass Point and JPMorgan also weighed in, with JPMorgan lifting its target from $39 to $46 while keeping an Underweight rating.
The current consensus across 21 analysts sits at Moderate Buy, with an average price target of $77.89. That implies roughly 96% upside from current price levels.
Institutional ownership stands at 41.08%. California State Teachers’ Retirement System grew its position by 6,197.8% in Q2, adding over 22.5 million shares worth around $1.05 billion.
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