IREN stock news: Wall Street remains split after earnings miss
Wall Street analysts are split on IREN stock following an earnings miss, tempered by progress in its AI infrastructure pivot.Summary
IREN reported weaker-than-expected revenue and earnings as its focus shifted from bitcoin mining to expanding its AI cloud infrastructure. Despite the soft fiscal second quarter, where revenue fell due to lower bitcoin mining activity, analysts noted encouraging signs regarding the AI transition. Key positive factors cited by analysts include securing $3.6 billion in GPU financing tied to a Microsoft contract and a $1.9 billion customer prepayment, which management claims covers about 95% of GPU-related capital expenditures. JPMorgan maintained an underweight rating, though noting cloud services revenue doubled sequentially and cost controls helped adjusted EBITDA beat their estimate. Conversely, B. Riley reiterated a buy rating with an increased price target, arguing the earnings miss is overshadowed by AI pivot progress. Compass Point also maintained a buy rating, emphasizing that the company is better positioned for future growth due to secure power and a clear funding plan, expecting revenue recognition from Microsoft to begin later in 2026.
(Source：CoinDesk)