Analysts Reiterate Buy on IREN Amid AI Revenue Growth
Analysts Reiterate Buy on IREN Amid AI Revenue Growth
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Key Points
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IREN reported Q4 EBITDA of $19.2 million, well below the Street consensus of $34.9 million.
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For fiscal 2027, IREN guided capex of $25 billion to $30 billion.
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IREN’s Q4 revenue was $137.2 million and the company posted a net loss of $684 million.
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GPU financing totaled $6.5 billion, aiming to fund more than 100% of GPU capex tied to the $4 billion ARR target, including about $2.8 billion for non-investment-grade deployments at single-digit rates.
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GuruFocus flags valuation concerns: GF Value is $15.93 versus a market price around $40.53, with a P/E of about 80.26x and a GF Score of 67/100 (growth/momentum strong but valuation weak).
Analysts are sticking with bullish calls on IREN despite a disappointing earnings report. HC Wainwright reiterated its Buy rating with a $90 price target after fiscal Q4 2026 results showed the company missed EBITDA estimates but posted $4 billion in annualized recurring revenue (ARR) driven by AI deals and customer growth. The stock trades near $40, well below analyst targets and the 52-week high.
IREN reported Q4 revenue of $137.2 million and a net loss of $684 million, with EBITDA coming in at $19.2 million versus the Street's consensus of $34.9 million. The company is planning massive capital spending, guiding $25 billion to $30 billion in capex for fiscal 2027 and securing $6.5 billion in GPU financing to support its infrastructure goals.
AI Lab Deal and ARR Growth Offset Earnings Miss
IREN's 2026 ARR of roughly $4 billion marks solid growth from customer renewals, expansions, and a new AI lab contract. HC Wainwright noted the company is excluding about $700 million in ARR from a NVIDIA partnership expected to ramp in 2027, indicating even stronger future revenue visibility. Leadership emphasized growth opportunities despite missing near-term earnings targets.
Massive GPU Financing Fuels Infrastructure Expansion
IREN has raised $6.5 billion in GPU financing to cover more than 100% of its GPU-related capex tied to the $4 billion ARR goal. The deal includes approximately $2.8 billion for non-investment-grade deployments at single-digit interest rates. Three-year pricing has jumped about 125% since November, underscoring strong demand for the company's compute capacity.
Valuation Concerns Amid Strong Analyst Confidence
GuruFocus flags significant valuation red flags: the GF Value stands at $15.93 while the stock trades around $40.53, with a P/E ratio of roughly 80x and a GF Score of 67/100. The score signals mixed strengths in growth and momentum but weak valuation metrics. BTIG and Cantor Fitzgerald also maintain Buy ratings at $80 and $99 targets respectively, though current price levels suggest investors are pricing in substantial future growth.
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