IREN Stock Drops 8% After Report Flags Power Outages at Key Sites

TLDR

• IREN shares dropped 7.7% to $35.71 on Thursday, extending a multi-day slide.
• Research firm SemiAnalysis flagged reliability issues at IREN’s British Columbia data centers, including multi-day power outages.
• The company’s fiscal Q4 2026 revenue fell 27% year-over-year to $137.23 million, with an adjusted net loss of $0.41 per share.
• Wall Street remains mostly bullish, with a Moderate Buy consensus and an average price target of $79.13, implying over 100% upside.
• IREN’s long-term growth story still hinges on its AI-cloud pivot, including Microsoft-related deployments and the planned Sweetwater hub.

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IREN shares fell 7.7% on Thursday, closing out the session at $35.71 after trading as low as $35.24. That’s a steep drop from Wednesday’s close of $38.69, and it follows a 6.27% slide the day before.

IREN Limited, IREN

The selling pressure traces back to a series of posts from research firm SemiAnalysis. On Wednesday, the firm flagged reliability problems at two of IREN’s data centers in Prince George and Mackenzie, British Columbia.

Customers reportedly experienced power outages lasting several days. SemiAnalysis also pointed to network upgrade issues at the same sites.

The firm went further, asking IREN to stop claiming it offers “managed cloud services.” That claim appeared in a recent U.S. securities filing where IREN said it owns and operates every layer of its stack.

Trading volume spiked as the news spread. More than 54 million shares changed hands, a 28% jump over the average session volume of roughly 42 million shares.

IREN’s Earnings Picture

The reliability concerns landed just weeks after IREN posted a rough quarter. Fiscal Q4 2026 revenue came in at $137.23 million, down 27% from $187.3 million a year earlier.

The company also swung to a loss. IREN posted an adjusted net loss of $0.41 per share, compared to an adjusted profit of $0.08 per share in the same quarter last year.

Despite the weak print, the company’s AI-cloud ambitions remain intact on paper. IREN has pointed to Microsoft-related deployments and its planned Sweetwater hub, which could eventually offer up to 2 gigawatts of capacity using liquid-cooled systems.

What Analysts Are Saying

Wall Street hasn’t abandoned the stock despite the rough week. The consensus rating sits at Moderate Buy, built from one Strong Buy, sixteen Buy ratings, four Holds and a single Sell.

The average price target of $79.13 would mark a massive move higher from current levels. That’s the kind of gap that tends to raise eyebrows, and it’s worth watching whether targets get trimmed in the coming weeks.

Not every analyst is on board, though. Jones Trading’s Kevin Dede has a Hold rating on the stock, citing a broad but lower-quality customer base.

BTIG’s Gregory Lewis takes the opposite view. He’s stuck with his Buy rating, pointing to IREN’s 5 gigawatts of potential power capacity and its four-year customer GPU contracts as reasons for optimism.

Institutional buyers have also been active. Situational Awareness LP grew its stake by 34.5% in the first quarter, while Bank of America increased its position by 58.4% over the same period.

IREN’s fifty-day moving average sits at $41.97, while its two-hundred-day average is $45.76. The stock carries a market cap of $14.07 billion and a debt-to-equity ratio of 1.80.

For now, the SemiAnalysis report has overshadowed the longer-term AI buildout story. IREN has not issued a public response to the specific outage claims as of Thursday afternoon.