IREN Moves $4 Billion Annualized Revenue Run-Rate Target to January 2027
Key Facts
IREN has pushed back its target to bring more than $4 billion in annualized run-rate revenue online to January 2027, from the end of 2026, according to its fiscal 2027 first-quarter results statement. The date could extend to the end of February, based on the explanation accompanying the revised schedule. The company attributed the shift to a customer-requested design change, along with supplier timing. The target concerns bringing revenue-generating capacity online, not recording $4 billion in realized revenue at the start of next year. The move puts the execution schedule for the company's AI cloud computing expansion to the test, despite growth in the segment's revenue in the latest quarter.
In the quarter ended September 30, 2026, quarterly AI Cloud revenue was $200 million, compared with $71 million in the previous quarter, according to Reuters via Investing.com. Total company revenue rose to $228 million, up 66% from $137 million in the previous quarter. By contrast, bitcoin mining revenue fell to $28 million from $67 million in the prior period. The figures reflect a growing shift in the revenue mix toward cloud operations, while mining continued to contribute at a lower level during the quarter. AI Cloud's gross margin was 86%, in line with the previous quarter.
Revenue growth did not translate into net income during the quarter; IREN reported a net loss of $263 million in the first quarter of fiscal 2027. Adjusted earnings before interest, taxes, depreciation and amortization were $66 million, up from $19 million in the previous quarter. The contrast between the net loss and improvement in the adjusted operating metric highlights the different measures captured by the indicators, as the company remains in an expansion phase for its cloud business. AI Cloud's gross margin holding at 86% also provides an indication of the segment's performance during the quarter, but does not change the company's reported net result for the period. This coincided with a decline in bitcoin mining income compared with the previous quarter, making growth in cloud operations a key driver of the increase in total revenue.
The contracted revenue backlog rose 22% quarter on quarter to $20.3 billion, with about two-thirds tied to investment-grade counterparties, according to Reuters via Investing.com. The backlog offers a view of the contractual commitments underpinning expansion plans, but is not equal to revenue actually generated during the quarter. In July, the company had raised its year-end 2026 ARR target from $3.7 billion to more than $4 billion, saying then that about 85% of the target was contracted after new agreements worth a total of $2.8 billion. The company's definition says ARR is calculated by multiplying the price of GPU hours placed in service and under contract by 8,760 hours per year, plus storage and additional services revenue. The company says this is an operational metric, not a GAAP measure, and recognized revenue may be significantly lower.
After the quarter ended, IREN announced a five-year contract priced at about $22 million per megawatt, with the customer paying 90% of GPU capital expenditures upfront. The company also signed a short-term contract priced at $40 million per megawatt. These agreements add detail on contract terms and GPU financing as part of the cloud expansion, while bringing capacity online on schedule also remains tied to the design change and supplier timing cited by the company. In the market, IREN shares closed down 16.95% on Thursday, November 5, 2026, before rising 1.5% in post-results trading. The stock's movements during the session and after the close offer two different snapshots of investor reaction on results day.