IREN reported $228 million in revenue for its fiscal first quarter ended 30 September, above analysts’ $221.28 million average estimate, but delayed some AI infrastructure deliveries for Microsoft after the customer requested network design changes, Reuters reported on 5 November 2026. The results, released on 5 November, put a later date on part of the data centre firm’s plan to bring contracted AI capacity into operation.
Key points
- IREN’s AI cloud revenue reached $200 million, up from $71 million in the preceding quarter.
- Part of its more than $4 billion annualised run-rate revenue target has moved from year-end 2026 to January 2027, potentially extending to the end of February.
- IREN said it would face no financial penalties for delays caused by Microsoft’s requested network changes.
- The company’s shares closed down about 17% amid a broader decline in AI infrastructure and data centre stocks.
AI cloud revenue reaches $200 million
IREN is shifting from bitcoin mining towards AI cloud infrastructure, using data centres to host computing capacity for companies developing and running AI models. Its AI cloud revenue rose to $200 million in the September quarter from $71 million in the preceding three months. Total revenue increased 66% from $137 million, The Energy Mag reported.
Of the AI cloud total, approximately $135 million came from GPU cloud services and $65 million from AI cloud leasing. Bitcoin mining brought in $28 million, down from $67 million in the previous quarter. The change in the revenue mix places more of IREN’s reported sales in the business for which it is expanding its data centre capacity.
IREN reported a $263 million net loss for the quarter, compared with a $684 million loss in the preceding quarter. Adjusted EBITDA rose to $66 million from $19 million. The Energy Mag reported an AI cloud segment gross margin of approximately 86%, a measure that excludes depreciation and certain site-level costs.
The quarterly result comes ahead of the capacity that IREN has set out to bring into operation under existing contracts. The company said its assets and revenue were supported by agreements with Microsoft, Nvidia and 13 other customers. Roughly two-thirds of its revenue backlog was tied to investment-grade counterparties, Reuters reported.
Microsoft changes shift IREN’s $4 billion timetable
Microsoft requested changes to the network design for some of the infrastructure IREN is due to deliver. IREN said the resulting delays would carry no financial penalties for the company. They have nevertheless moved part of the timetable for making its more than $4 billion annualised run-rate revenue target operational from year-end 2026 to January 2027. IREN said the timing could extend to the end of February.
IREN described the more than $4 billion target as contracted annualised revenue, with the associated capacity fully funded. The revised date concerns when that capacity becomes operational. The Energy Mag put IREN’s revenue backlog at $20.3 billion.
The Microsoft relationship includes an agreement for the software company to spend $9.7 billion over five years renting Nvidia-powered servers at IREN’s Childress, Texas, data centre, Stocktwits reported on 4 November. It reported that IREN had planned to bring the servers online in stages through 2026.
Microsoft has also been tightening oversight of projects run by cloud infrastructure providers including IREN, Nebius and Nscale amid delays and rising costs, Bloomberg News reported. An earlier AI Affairs report on Microsoft’s neocloud oversight covered its decision to decline an Nscale expansion in Texas.
Microsoft spending and IREN’s quarterly costs
Microsoft spent about $5 billion less on capital expenditure than planned in its preceding quarter because some capacity it expected to rent was late, Stocktwits reported. Microsoft finance chief Amy Hood put capital expenditure at $45.2 billion and cited delays to third-party capacity expected during the quarter. The Information reported that IREN was among the providers involved, although its contribution to the spending shortfall was unclear, according to Stocktwits.
IREN’s shares closed down about 17% on 5 November amid a broader selloff in AI infrastructure and data centre-related stocks. In volatile trading after the close, they rose more than 4%.
IREN’s September-quarter expenses included $148 million in depreciation and amortisation and $106 million in share-based compensation. The company also recorded $73 million in finance expenses.
