IREN Ltd (IREN) · Nov 5, 2026 · Earnings

IREN earnings: AI Cloud surges, $4B ARR slips to January

In line — Q1 revenue $228M vs ~$227.7M consensus

IREN earnings show a sharp AI Cloud ramp and improving EBITDA, but the company pushed its more than $4 billion ARR target from year-end into January or February.

IREN is moving from bitcoin mining toward a vertically integrated AI Cloud platform, built around secured power, data centers and NVIDIA GPUs. The prior story already included a more than $4 billion contracted ARR target and a major Microsoft deployment, with Horizon 1 delivered and the remaining Horizon facilities expected to ramp during late 2026.

The quarter itself was essentially in line, not a surprise beat. Revenue of $228 million landed almost exactly against the published consensus of roughly $227.7 million, while the mix changed dramatically: AI Cloud revenue rose to $200 million from $71 million, offsetting bitcoin-mining revenue falling to $28 million from $67 million. AI Cloud segment gross margin held at 86%, matching the prior quarter. (Financial Highlights)

Q1 FY27Q4 FY26Consensus
AI Cloud revenue (Financial Highlights)$200M (+181.7%)$71M
Bitcoin Mining revenue (Income Statement)$28M (-58.2%)$67M
Total revenue (Financial Highlights)$228M (+66.4%)$137M$227.7M
Adjusted EBITDA (Adjusted EBITDA reconciliation)$66M (+247%)$19M
Net loss (Income Statement)$(263)M$(684)M
Net debt (Net Debt reconciliation)$4.43B$216M

The operational proof point is meaningful, but the timing slipped. Horizon 1 went into service for Microsoft, AI Cloud operating ARR doubled to $1 billion, and backlog reached $20.3 billion. However, the more than $4 billion ARR target previously expected by year-end 2026 is now targeted for January 2027 and may extend to the end of February after a customer-requested design change and supplier timing. That is not a loss of contracted demand, but it pushes the key conversion milestone beyond the timetable investors had been tracking. (Business Highlights)

The new contracts improve the economics and funding profile, but do not eliminate execution risk. After quarter-end, IREN disclosed a five-year contract at approximately $22 million per IT megawatt with 90% of associated GPU capex prepaid, plus a short-term contract at $40 million per IT megawatt. Those terms are better than simply adding unfinanced capacity, but the company still expects $6 billion of its remaining $15 billion FY27 capex to come from financing and other sources subject to market conditions. (Demand and contracting; Balance sheet and funding)

The financial improvement is real at the operating level, while leverage has risen sharply. Adjusted EBITDA increased to $66 million and total segment gross profit to $182 million as AI Cloud scaled. But cash and restricted cash fell to $5.78 billion from $7.62 billion while net debt rose to $4.43 billion from $216 million, reflecting the capital intensity of the buildout. (Cash Flow statement; Net Debt reconciliation)

Bottom line: IREN is demonstrating that the AI Cloud transition is producing revenue and operating profit, but the headline milestone has moved rather than arrived early. The quarter is in line financially and modestly advances the business story, with execution and financing still carrying the next leg.

What to watch next

$4B ARR commissioning target, January–February 2027

Original filing on SEC EDGAR

More IREN Ltd news

IREN earnings: AI Cloud surges, $4B ARR slips to January | IREN Stock News
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