Neither Applied Digital nor IREN can be called the better buy from the available operating figures alone. Applied Digital has much larger disclosed long-term data-center lease commitments, but much of that capacity still has to be built and delivered. IREN already earns AI Cloud revenue and operates AI capacity, while Bitcoin mining remained its largest FY2026 revenue source. Without current, comparable valuations and per-share assumptions, the better choice depends on execution, revenue quality, funding needs and the price an investor pays.
What the two companies reported for FY2026
The latest fiscal years are not aligned: Applied Digital’s year ended May 31, 2026, while IREN’s ended June 30, 2026. The figures below are company-reported results, not a synchronized snapshot of their current market values. Applied Digital also reports company-defined non-GAAP measures; those should not be read as interchangeable with GAAP results or with IREN’s measures.
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| Measure | Applied Digital | IREN |
|---|---|---|
| FY2026 revenue | $611.3 million reported revenue; $539.7 million adjusted revenue, a company-defined non-GAAP measure | $707.0 million total revenue |
| Revenue mix | Reported revenue included $270.6 million of tenant fit-out services; fit-out work is not recurring lease rent | $578.2 million Bitcoin mining revenue and $128.8 million AI Cloud Services revenue |
| FY2026 profitability | $249.2 million GAAP net loss attributable to common stockholders; $107.2 million adjusted EBITDA, a company-defined non-GAAP measure | $702.6 million GAAP net loss; $245.7 million adjusted EBITDA |
| AI data-center footprint | About 1,410 MW of contracted critical IT load across five campuses; 175 MW live at Polaris Forge 1 by June 30, 2026 | About 40 MW of operating AI Cloud Services capacity at June 30, 2026 |
How much of the AI opportunity is operating today?
Applied Digital: large commitments, substantial delivery work ahead
Applied Digital disclosed approximately $36 billion of base-term contracted lease revenue across five campuses, associated with about 1,410 MW of contracted critical IT load. These are multi-year contract totals, not annual revenue or cash already earned. A lease’s value depends on construction, delivery, ready-for-service milestones and the customer’s lease commencement. Some recently signed leases were expected to begin initial operations in 2027 or 2028.
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The company said the total could reach about $86 billion if all renewal options are exercised. That is a conditional maximum, not the base-term amount and not guaranteed revenue. The operational comparison is more modest: 175 MW was live at Polaris Forge 1 by June 30, 2026, while other projects were at different stages of development.
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IREN: AI revenue and operating capacity, alongside a mining business
IREN reported $128.8 million of AI Cloud Services revenue in FY2026 and about 40 MW of operating AI Cloud Services capacity at June 30, 2026. That gives investors reported AI revenue and an operating footprint to assess, but AI was still the smaller annual revenue stream: Bitcoin mining generated $578.2 million of the company’s $707.0 million total.
IREN’s cumulative IT delivery targets of 0.3 GW in 2026 and 0.8 GW in 2027, and its pipeline exceeding 5 GW, describe plans and potential—not capacity already operating. Investors should track actual deliveries and customer use against those targets rather than treating the pipeline as installed infrastructure.
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What the earnings figures do—and do not—say
Applied Digital’s fit-out revenue is different from recurring rent
Tenant fit-out services accounted for $270.6 million of Applied Digital’s FY2026 reported revenue and came with related service costs. That work can make reported revenue rise without an equivalent increase in recurring rent. The company’s $539.7 million adjusted revenue and $107.2 million adjusted EBITDA are non-GAAP measures, and the company’s adjusted figures exclude ChronoScale. Compare them with the GAAP results and the company’s definitions, not as a direct substitute for recurring lease economics.
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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsIREN’s loss reflects impairments and financial-instrument accounting
IREN’s FY2026 GAAP net loss was $702.6 million, including $638.8 million of asset impairment charges, primarily connected to its strategic transition and asset displacement. Financial-instrument fair-value movements also affected reported results, including sizable unrealized gains. Adjusted EBITDA of $245.7 million is a different, company-defined measure; it does not erase the GAAP loss or the cash and execution implications of the transition.
Rank #3
Funding, dilution and execution risk
Applied Digital
At May 31, 2026, Applied Digital reported $4.2 billion in cash, cash equivalents and restricted cash, alongside $5.0 billion in debt. Its plans depend on delivering large construction projects and maintaining access to funding. The disclosed cash figure includes restricted cash, so it should not be treated as entirely available for general use.
IREN
At June 30, 2026, IREN reported $5.896 billion in cash and cash equivalents and separately reported $1.724 billion in restricted cash. It also reported $14 billion of committed GPU financing and prepayments. That financing and prepayment figure is not cash on hand; GPU spending and the build-out still create substantial capital demands.
Rank #4
These balance-sheet figures are from different dates and use different cash classifications, so they do not support a simple claim that one company has more freely available funding. For both businesses, debt costs and maturities, construction spending, GPU commitments, restricted cash and potential future share issuance matter. Funding needs can change the value of each share even when a project or revenue target is met.
Customer and business concentration
Applied Digital describes multiple campuses and customers, but several recent large leases involve the same high-investment-grade hyperscaler. Contracted megawatts alone do not reveal how dependent the company is on particular tenants, nor do they capture lease protections, termination terms or customer performance.
Best Value
IREN’s FY2026 revenue mix shows meaningful exposure to Bitcoin economics during its shift toward AI Cloud. Its AI plans add a different operating challenge: delivering data-center capacity, deploying GPUs and converting plans into cloud services customers actually use. Investors should distinguish this transition risk from the impairments already recognized in FY2026.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Which stock is the better buy? Start with valuation
The operating evidence supports two different theses, but it does not establish which stock offers the better expected return at the October 7, 2026 market price. A defensible buy comparison needs synchronized share prices, diluted share counts, market capitalizations and enterprise values, plus explicit assumptions for forward rent, cloud revenue, EBITDA and free cash flow. Those inputs are not established here, so there is no reliable basis for saying one equity is cheaper or assigning a price target.
- Applied Digital may suit an investor prioritizing contracted scale who believes the company can finance and deliver its campuses, meet tenant start dates and turn commitments into recurring lease income. The key tests are construction progress, live capacity, lease commencement and customer concentration.
- IREN may suit an investor prioritizing operating AI exposure who accepts that Bitcoin mining still materially contributes to revenue and believes the company can expand AI Cloud capacity while managing GPU and infrastructure spending. The key tests are actual capacity deliveries, AI revenue growth, mining exposure and funding terms.
At the next results, compare delivered megawatts with contracted or targeted megawatts; recurring lease or AI Cloud revenue with fit-out or mining revenue; and cash generation with the capital required to keep building. Then compare those expectations with each stock’s valuation and dilution risk. Without the valuation step, choosing between the businesses is not the same as identifying the better buy.
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