IREN Q1 FY2027: AI cloud revenue nearly triples to $200M, the $4B run rate slips to January

$IREN reported revenue of $228M for its first fiscal quarter, up 66% from the June quarter, as AI cloud revenue nearly tripled to $200M and bitcoin mining fell to $28M. The revenue backlog rose 22% to $20.3B. The date moved too: the more than $4B annual run rate (ARR) the company had targeted for the end of 2026 is now targeted for January 2027, and may extend to the end of February. This recap walks the print, the contracts, the timing, the cash, the read across the Datacenter Power bubble and what to watch next, against our /stocks/iren thesis.

The print

$IREN reported the quarter ended September 30, 2026, the first quarter of its fiscal 2027.

What moved the numbers:

• AI cloud. Horizon 1 went into service for Microsoft, with NVIDIA Exemplar Cloud status for its GB300 NVL72 systems, and $65M of lease revenue appeared for the first time.
• Mining. Bitcoin mining revenue fell to $28M from $67M as the fleet winds down.
• Year on year. Against $240.3M a year ago, when the company was still mostly a miner, total revenue is down about 5% (our arithmetic from the 10-Q of November 2025).
• The loss. Depreciation and amortization of $148M, stock compensation of $106M and $73M of finance expense keep the GAAP line deep in the red. A June quarter that included $450M of impairments makes the sequential comparison flattering.

The contracts and the timing

• Backlog of $20.3B, up 22% in a quarter, about two-thirds with investment-grade counterparties (company definition: remaining obligations, leases and other committed amounts).
• Pricing. Contracted revenue per megawatt rose 11% on three-year deals and 12% on five-year deals, by the company's estimate.
• After the quarter. An expanded contract with a leading frontier AI lab (not named), a five-year contract at about $22M of annual revenue per IT megawatt with 90% of the GPU capex prepaid by the customer, a short-term contract at $40M per IT megawatt, and H100 GPUs contracted at double the previous price.
• The delay. The more than $4B ARR target, previously year-end 2026, is now targeted for January 2027 and may extend to the end of February. The company says ARR is an operating metric, not revenue, and that recognized revenue may be materially lower.

Operating ARR doubled to about $1B in the quarter, per the co-CEO.

The cash

• Spending. $4.82B of capital spending in one quarter: $2.13B on property and equipment and $2.69B on computer hardware.
• Funding. $2.36B drawn from financing facilities and $498M of new shares; operating cash flow of $529M, helped by $645M of customer prepayments.
• The next bill. $15B of capex remains planned for fiscal 2027, of which $9B is covered by cash, committed GPU financing and prepayments, and $6B is still to be raised "subject to market conditions".

Datacenter Power read-through

The standing QA thesis on /stocks/iren is a miner turned GPU cloud that owns its land and power, with a large contracted book led by Microsoft, against customer concentration, timing and debt.

• The crossover. Confirmed and widened: AI cloud is $200M of $228M.
• Power as the asset. More than 5GW of secured power and the 2GW Sweetwater hub conditionally in ERCOT's Batch Zero process; the company stresses that it owns "the land, the power and the data centers".
• Concentration. Customers now include NVIDIA, Microsoft and 13 others, per the release.
• Timing and debt. Both bear points moved the wrong way this quarter: the run rate is later, and net debt rose by $4.2B.

Net read: the revenue mix and the pricing moved forward; the schedule and the balance sheet did not.

Peer reaction

$IREN's closest correlated names in the QA universe over 252 days are $CIFR (0.81), $CORZ (0.79), $APLD (0.77) and $WULF (0.76), the same move from mining to AI hosting. $WULF reports on November 6. The release came after the close, so the session reaction was not established when this recap was written.

What worked

• AI cloud revenue up 182% to $200M, at an 86% segment gross margin.
• Adjusted EBITDA of $66M, a 29% margin, from $19M.
• Backlog up 22% to $20.3B, two-thirds investment grade.
• New contracts priced higher, one with 90% of the GPU capex prepaid.

What broke

• The schedule. The $4B run rate moved from year-end to January, possibly February.
• The debt. Net debt of $4.43B, from $0.22B three months earlier, and $6B of fiscal 2027 funding still to find.
• The loss. A $263M net loss, with $106M of stock compensation.
• The tape. An $18.03 close on November 5 before the release, down 50% over a month, 53% over three months and 76% over a year in the data QA tracks.

What to watch

• The call and the 10-Q: what the customer-requested design change was, and which buildings it moves.
• January 31, 2027: the $4B ARR target against the new date.
• Funding of the remaining $6B of fiscal 2027 capex, and its cost.
• Mining revenue on the way to zero, and AI cloud revenue per quarter as Horizon 2 to 4 come in.
• Levels. The curated key level on IREN sits at $43, above the November 5 close.

The level map, the peer table and the standing thesis live on /stocks/iren, where our IREN teardown video is embedded, with the company primer in IREN explained. The full $IREN dossier collects the filings and the numbers. To follow the power and data center names as a group, see the Datacenter Power bubble.

---

Educational research on structural market dynamics. Not investment advice. QuantAbundance positions may change without notice.