Yes, the IS is finished in Iraq because they have retaken Mosul from the IS. This is a big victory because it is a large city in Iraq. This will spread to other places and IS will realize that they cannot coordinate efforts enough to keep terrorizing people in the country.
The battle to retake Mosul from Islamic State militants has been long and arduous. Most recently, Iraqi troops retook the eastern part of the city, a major step forward in removing militants from this key battle site and from Iraq. Yet while this offensive was successful, reclaiming the western side of the city may not go according to plan. The Islamic State is slowly draining out of Iraq and the region, but ISIS' power in the Middle East and abroad - for instance, in surprise terrorist attacks in Turkey, France, and even the US - remains strong and is growing.
Unfortunately, the Islamic State is far from finished. The recent battles in Iraq have yielded some successes; however, it will take much more to defeat the Islamic State. ISIS has influence in many countries and can continue to launch terrorists attacks without support in Iraq. The global community will need to put together a major coalition to defeat ISIS.
Even if IS is driven out of Mosul, the group will still control areas of northern and eastern Iraq. Many are expected to be caught in the fighting. There are fears that residents could be used as human shields by IS. As many as a million people could be forced to flee their homes.