TLDR
- IREN stock closed at $18.03 on Nov. 5, down 17% from $21.71.
- Bitcoin mining revenue fell 58% to $28 million as the company winds down mining.
- AI cloud revenue rose 182% to $200 million, and total revenue hit $228 million.
- A Microsoft design change pushed the $4 billion ARR target to January 2027.
- IREN expects about $15 billion in capital spending in fiscal 2027.
IREN (IREN) stock closed at $18.03 on Thursday, down nearly 17% from the prior close of $21.71. The drop came after the company’s earnings release and a broader sell-off in AI and tech names.
The stock did claw back some ground in extended trading. That came after the report hit the tape.
The company said bitcoin mining revenue fell 58% to $28 million in the three months ended Sept. 30. That compares with $67 million in the June quarter and $233 million a year earlier.
New multi-year contracts. Disciplined capital allocation. Flexibility to set our own pace of growth. Value at every layer of the platform.
Last quarter, AI Cloud revenue nearly tripled to $200 million.
Other highlights from our Q1 FY27 results:
– Total quarterly revenue… pic.twitter.com/DPDkvgMhX4— IREN (@IREN_Ltd) November 5, 2026
Mining output tells the same story. IREN mined 402 BTC, down from 2,039 BTC a year ago.
Average hashrate dropped to 8.8 EH/s from 45.3 EH/s. The company pulled mining gear to make room for AI hardware.
IREN held no bitcoin at the end of September. It sells what it mines every day.
AI Cloud Takes the Lead
AI cloud revenue climbed 182% to $200 million, up from $71 million in the prior quarter. That made up nearly 88% of total sales, versus about 52% in June.
Total revenue rose 66% to $228 million from $137 million. Of the AI cloud figure, $135 million came from cloud services and $65 million from leasing.
The leasing income followed Microsoft’s acceptance of the first Horizon data center deployment in August. IREN posted a net loss of $263 million, narrower than the $684 million loss last quarter.
Adjusted EBITDA rose to $66 million from $19 million. The AI cloud segment kept an 86% gross margin, flat from the prior quarter.
Co-CEO Daniel Roberts said Horizon 1 went into service for Microsoft with NVIDIA Exemplar status. He added that operating ARR doubled to $1 billion.
Revenue backlog reached $20.3 billion, up 22%. About two-thirds is tied to investment-grade customers.
Microsoft Request Moves the Timeline
The bigger shock was the schedule change. IREN had aimed to hit more than $4 billion in contracted ARR by December 2026.
That target now sits in January 2027, with a possible slip into February. Roberts cited a customer-requested design change and supplier timing.
He named Microsoft as the customer asking for network changes at its 200-megawatt deployment. Roberts said the $4 billion is funded.
Cost is the other piece. IREN expects roughly $15 billion in remaining capital spending in fiscal 2027.
Management said $9 billion would come from cash, committed financing and customer prepayments. The other $6 billion depends on targeted financing, including more GPU and data center funding.
IREN holds $20.6 billion in total assets, with $6 billion in data center assets. Contracts with Nvidia, Microsoft and 13 other customers back those assets and revenue.
After the quarter, IREN expanded a deal with an AI research company. The five-year contract carries about $22 million in annual revenue per megawatt, and the customer agreed to prepay 90% of the related GPU spending.
IREN also signed a shorter deal worth $40 million in annual revenue per megawatt. At Sept. 30, it ran about 93 megawatts of AI cloud capacity.
Horizon 2 through Horizon 4 have reached late-stage construction. IREN says it aims to substantially complete its mining exit by Dec. 31, 2026, with immaterial mining continuing through 2027.
