IREN financial performance and revenue targets

IREN shares experienced a 12.2% decline during a broader sector sell-off following US inflation data that raised concerns about high interest rates. This macroeconomic pressure affected multiple highly leveraged AI infrastructure companies.

By November, IREN reported quarterly revenue of $228 million, exceeding analyst estimates, though the company recorded a net loss of $263 million. The company announced it has delayed its target of more than $4 billion in annual recurring revenue until at least January. This delay is reportedly due to a customer request and affects the timing of revenue from its AI cloud segment. Much of the company's growth is linked to a $9.7 billion, five-year contract with Microsoft, with deliveries at its Texas site expected to begin in December 2026.

Recent reporting indicates a strategic pivot toward AI computing infrastructure, with IREN planning a full exit from Bitcoin mining activities by the end of 2026. While AI Cloud division sales rose 182% to $200 million, Bitcoin mining revenue declined 58% to $28 million. However, the company reported a first-quarter loss of 66 cents per share, which was wider than the 48-cent loss expected by analysts. The $4 billion annual recurring revenue target has been pushed from late 2026 to early 2027, cited as being due to network upgrade requirements at its Texas data center related to a Microsoft project.

In its fiscal first-quarter 2027 results, IREN reported total quarterly revenue of $228 million, representing a 66% increase from the previous quarter. The company maintains a revenue backlog of $20.3 billion, with two-thirds of that figure attributed to investment-grade counterparties, including Microsoft and Nvidia. The delay in reaching the $4 billion annual recurring revenue milestone is specifically linked to equipment delays and design changes requested by Microsoft at the Childress, Texas facility.