IREN Delays $4 Billion-Plus Revenue Target to January 2027
Key Facts
IREN postponed the start of its target for an annualized revenue run rate exceeding $4 billion from the end of 2026 to January 2027, with the timeline potentially extending to the end of February, Reuters reported, citing the company in a report published after its results on November 5. The change reflects a delay in carrying out an expansion plan aimed at converting computing capacity into operating revenue. The company said the network design change was requested by Microsoft and that supplier timing also contributed to the delivery delay. Reuters reported that the delay in infrastructure dedicated to Microsoft would not result in financial penalties because the customer requested the design change. This explanation places the cause of the delay in the preparation and delivery process, while the operating target remained in place with a revised timeline.
The announcement coincided with quarterly AI Cloud revenue rising to $200 million in the quarter ended September 30, 2026, from $71 million in the previous three months, according to Reuters. The company’s total revenue reached $228 million for the quarter, highlighting the weight cloud computing has gained in its results. That growth describes revenue generated during the period, while the annualized revenue target remains a separate operating metric. Accordingly, higher quarterly revenue does not mean the annual target has already been achieved. The infrastructure’s scheduled activation and delivery remain part of the path to that target.
The expansion plan requires substantial capital spending; the company estimated that about $15 billion in capital expenditure remained for fiscal 2027, according to Reuters. The disclosure showed capital commitments of $18.95 billion at the end of September, compared with $13.81 billion three months earlier. The increase in commitments during the quarter points to a larger scale of financial obligations tied to the company’s projects. At the same time, the expected spending puts execution of the plan under pressure to secure financing while completing infrastructure work. The company linked the delay in its comments to design changes and supplier timing, while the commitments and spending provide the financial backdrop to the ongoing expansion.
The results and delay announcement affected trading on November 5, when IREN shares closed down about 17% amid a broader sell-off involving chip companies and specialized cloud infrastructure providers, according to Reuters. The stock rose 4% in extended trading after the results, following its closing decline. IREN shares closed at $18.03 that day, according to EL7 data. They then closed at $21.64 on November 6, marking a recovery in the next session. The move places the market reaction in sequence, from a decline on results day to a higher close the following day.
The expansion plans come as demand for electricity from large-load projects in Texas increases. ERCOT said on June 18 that it was tracking requests exceeding 438,000 megawatts, with data centers accounting for about 89% of them. These figures provide context for demand for data center-related infrastructure, the area in which IREN is expanding through AI Cloud. The new operating timeline reported by Reuters sets January 2027 as the company’s target, with execution potentially extending to the end of February. Under the company’s explanation for the delay, reaching the target depends on completing design changes and receiving supplier equipment.