IREN shares rose approximately 20.02% on Friday, November 6, 2026, closing at about $21.64, after the former Bitcoin miner reported fiscal first-quarter 2027 results that showed its AI business accelerating faster than shareholders seemed to expect.
AI cloud revenue nearly triples
AI cloud revenue hit $200 million for the quarter, up 182% from $71 million in fiscal Q4 2026, meaning the segment nearly tripled in three months. Total revenue reached $228 million, a 66% quarter-over-quarter gain that beat analyst expectations.
The company reported an 86% gross margin in its AI cloud segment. IREN credited expanded contracts with major customers, including a frontier AI lab and a new five-year prepaid GPU agreement.
Backlog and ARR growth
IREN's revenue backlog now stands at $20.3 billion, up 22% from the previous quarter. Operating annual recurring revenue doubled to $1 billion.
Net loss and delayed target
Not every line item was celebratory. IREN posted a net loss of $263 million, wider than analysts had projected. The company also pushed back its target of more than $4 billion in ARR to early 2027.
The delay stems from a design change requested by Microsoft, along with related equipment delays at IREN's Childress, Texas facility. IREN stressed that the $4 billion-plus target remains fully contracted and funded, indicating the delay is about timing rather than demand.
Childress also delivered a milestone this quarter: the first Microsoft data hall at the site came online running NVIDIA GB300 systems. That facility anchors IREN's $9.7 billion five-year cloud services contract with Microsoft.
Mining revenue declines as pivot continues
Bitcoin mining revenue fell to $28 million, down from $67 million the previous quarter. The decline is deliberate, as IREN has been shifting power and capacity away from mining and toward AI workloads.
In fiscal Q4 2026, mining revenue of $67 million sat close to AI cloud revenue of $71 million, a near even split. One quarter later, AI out-earns mining roughly seven to one.
What to watch
Friday's move suggests the market is rewarding IREN's pivot rather than punishing the near-term costs, with investors looking past the $263 million loss and delayed target to focus on revenue growth and the $20.3 billion backlog.
Risks remain. Customer concentration is notable given how much of IREN's growth story runs through Microsoft and a small group of large clients. The Childress delay shows how a single customer request can shift timelines by months, and any further equipment or construction setbacks would push the $4 billion-plus ARR goal further out.
Key items to watch next include progress on additional Childress data halls, updates on the early 2027 ARR timeline, and whether Bitcoin mining revenue keeps shrinking as capacity shifts.
