IREN Limited shares have dropped 23.1% over the past three months, significantly underperforming the Zacks Finance sector’s decline of 7.6%. In the same period, Applied Digital has seen a 20.9% decrease, while TeraWulf shares rose by 21.5%. For the second quarter of fiscal 2026, IREN reported a 23% fall in total revenues, primarily due to a 28.2% sequential drop in Bitcoin mining revenues.
The Zacks Consensus Estimate for IREN’s Bitcoin mining revenues for the third quarter of fiscal 2026 is forecasted at $139.6 million, indicating a further sequential decline of 16.6%. Meanwhile, IREN is transitioning towards AI cloud services, aiming for over $3.7 billion in annualized run-rate revenues by the end of 2026, backed by a GPU fleet expansion to 150,000 units. The company has secured $9.3 billion in funding over the past eight months, positioning itself for increased AI cloud service capacity.
Despite the shift, IREN currently trades at a forward price-to-sales ratio of 4.68, compared to the industry average of 2.59, suggestive of overvaluation. The company has also signaled bearish trends with its stock dipping below key moving averages, as competition intensifies from established players like Applied Digital and TeraWulf.
