IREN reported $200 million in AI-cloud revenue for the quarter ended September 30, 2026, up from $71 million in the previous quarter, as its shift away from Bitcoin mining accelerated. The New York-listed company’s November 5 fiscal first-quarter earnings release reported $228 million in total revenue, 66% higher sequentially, but a $263 million net loss. Its target of more than $4 billion in annualized operating revenue moved from year-end 2026 to January 2027, potentially late February, after design changes requested by a customer and supplier delays.

AI Cloud Services produced $135 million of revenue and AI Cloud Lease arrangements another $65 million, compared with $71 million combined in the June quarter. Bitcoin mining revenue fell from $67 million to $28 million. The figures measure revenue recognized during each quarter, not the run rate implied by GPU capacity contracts. An earlier shift from mining megawatts toward AI compute is now visible in IREN’s actual business mix.

IREN’s official August 19, 2026 video, “IREN Delivers Horizon 1 to Microsoft,” documents the earlier site-delivery milestone. Source: IREN’s YouTube channel. Footage predates the November earnings.

The Microsoft campus is operating, but expansion slipped

The company says Horizon 1 at Childress, Texas, was delivered to Microsoft and achieved NVIDIA Exemplar Cloud recognition for its GB300 NVL72 accelerated systems. The first building is one of four planned 50-megawatt IT-load phases under a five-year Microsoft cloud-services agreement. The earlier NVIDIA hardware-validation coverage helps distinguish benchmark qualification from the later delivery of customer-ready infrastructure.

IREN described Horizon 2 through Horizon 4 as late-stage construction at September’s end. Management said customer-requested design changes and supplier timing shifted the target for more than $4 billion of contracted operating ARR. The January date remains a goal, with commissioning, testing and customer acceptance required before substantial revenue recognition. A contracted customer does not make a GPU rack operational.

Operating margins are not corporate profits

The company cited an 86% AI-cloud segment gross margin, calculated before depreciation, amortization and site-level costs. Adjusted EBITDA increased from $19 million to $66 million, but the company still reported a GAAP net loss of $263 million, versus a $684 million loss in the preceding quarter. Earlier analysis of power-connected mining sites explains the value of grid access, but adjusted EBITDA and segment gross margin cannot be treated as cash profit after corporate overhead, depreciation or financing.

IREN’s reported backlog reached $20.3 billion, up 22% sequentially, with about two-thirds attributed to counterparties holding investment-grade credit ratings or guarantees. Backlog is committed future work subject to delivery and availability requirements, not cash already received or a guarantee against delays. The company also disclosed a roughly $22 million annual revenue-per-IT-megawatt five-year deal after the quarter ended, with customer prepayments covering 90% of associated GPU capital expenditure.

Power capacity and financing need careful labels

IREN reported more than 5 gigawatts of secured power, while its greater than 35-gigawatt development pipeline includes speculative sites lacking completed connection agreements. Neither figure describes a fully energized AI installation. Its proposed Sweetwater buildout is distinct from existing Texas capacity, as explored in our Texas data-center project ranking.

The company expects $15 billion of remaining fiscal-2027 capital expenditure. It identified $9 billion in cash, committed GPU financing and contractual prepayments, while another $6 billion depends on targeted financing or additional prepayments. Management considers the approximately 0.3-GW IT program supporting its $4 billion ARR goal funded, subject to financing conditions; broader expansion still carries funding risk.

IREN’s transition illustrates the appeal of power-connected land and liquid-cooled facilities, but investors face equipment depreciation, borrowing costs, utilization risk and delivery deadlines. Earlier coverage of volatility in mining-to-AI equities supplies useful market context. The next tests are completed Horizon phases, customer acceptance, quarterly recognized revenue and financing actually closed.

Editor’s Note. IREN’s November 5 filing supplied the reported quarterly figures and its forward revenue targets. AI Cloud gross margin and adjusted EBITDA are non-GAAP measures; contracted ARR differs from recognized revenue. The official IREN video was published in August 2026; the facility photograph is archival, and the featured cover is an editorial illustration. Video playback requires independent browser testing.

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