IREN shares surge 20% as AI cloud revenue triples

IREN Limited reported a significant shift in its business model during its fiscal first-quarter 2027 results, as AI cloud revenue surged 182% to $200 million. This growth comes as the company continues to pivot away from its origins in Bitcoin mining, which saw a 58% decline in revenue to $28 million during the same period.

Total quarterly revenue reached $228 million, a 66% increase from the previous quarter. Despite the revenue beat, the company reported a net loss of $263 million, which was wider than analyst expectations. IREN also announced a delay in its target to reach $4 billion in annual recurring revenue (ARR), pushing the milestone from late 2026 to early 2027 due to equipment delays and design changes requested by Microsoft at its Childress, Texas facility.

The company maintains a massive revenue backlog of $20.3 billion, with two-thirds attributed to investment-grade counterparties, including Microsoft and Nvidia. IREN is currently managing a large-scale transition toward AI infrastructure, supported by a five-year cloud services contract with Microsoft and the deployment of NVIDIA systems at its Texas data centers.