IREN beat Wall Street's revenue estimate for its latest quarter but told investors that a key revenue milestone is running late. The company said in its Thursday earnings report that more than $4 billion in annual recurring revenue, originally projected for 2026, has been pushed out to at least January. According to CNBC, the delay came at a customer's request.
The stock had already fallen 55% over the past month, including a 26% post-election plunge, before rising in extended trading after the report.
Quarterly results
IREN reported revenue of $228 million for the quarter, up 66% from the prior quarter. That topped the $221 million average analyst estimate compiled by LSEG.
The quarter was IREN's first quarter of fiscal 2027, covering the period ending September 30, 2026. The company reported results on November 5, 2026.
AI cloud drove the growth, bringing in $200 million, a 182% jump from the previous quarter. Bitcoin mining contributed $28 million.
IREN also recorded a net loss of $263 million for the quarter.
Microsoft contract and backlog
The delayed revenue target is tied to IREN's largest customer relationship. The company holds a $9.7 billion, five-year contract with Microsoft. Phases of that deal at IREN's Childress, Texas site are expected to begin delivering by December 2026.
The stock fell 18-20% on November 5 on reported delays linked to Microsoft. The postponement of the more than $4 billion annualized run-rate target has also been tied to design changes and supply issues.
IREN's revenue backlog stands at $20.3 billion, up 22% from the prior quarter. Roughly two-thirds of that backlog comes from investment-grade clients.
Shift from mining to AI
IREN is one of several companies that began as a Bitcoin miner and then found that its real asset was power, land and data center capacity. AI cloud revenue now dwarfs mining income, and the Microsoft contract signals that hyperscalers are willing to rent capacity from former crypto operators.
What to watch
The core tension in the report is timing, not demand. IREN has a $20.3 billion backlog and a marquee Microsoft deal, yet the market punished it for a milestone sliding by a matter of months. The $263 million net loss adds pressure, as a company spending heavily on construction needs revenue to show up on time.
The detail that the delay came at a customer's request suggests the revenue has been postponed rather than lost, but it also highlights how much IREN's near-term trajectory depends on decisions made by a small number of very large clients.
The key dates to watch are December 2026, when Childress phases for Microsoft are expected to start delivering, and January, the new floor for the more than $4 billion annualized revenue target.
