IREN reported $228 million in revenue for the first quarter of fiscal 2027, as its AI Cloud business expanded rapidly and became the company’s main source of quarterly sales.
The quarter ended September 30, 2026, and the results were released Thursday, November 5, after the U.S. market close.
IREN posted a net loss of $263 million for the period.
Adjusted EBITDA was $66 million, compared with $19 million in the previous quarter.
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AI Cloud revenue reaches $200 million
IREN’s AI Cloud Services revenue rose to approximately $200 million in the quarter, nearly tripling from $70.5 million in the fourth quarter of fiscal 2026.
The company’s AI Cloud gross margin was approximately 86%, broadly in line with the previous quarter, according to the reported results.
The increase reflects the initial contribution from expanded GPU capacity, including the first Microsoft-linked Horizon deployment at IREN’s Childress, Texas, campus.
IREN has been repositioning itself from a Bitcoin mining operator into an artificial-intelligence infrastructure provider that rents computing capacity to hyperscalers, AI developers and enterprise customers.
Bitcoin mining revenue continues to fall
Bitcoin Mining revenue declined to about $28 million from $66.7 million in the previous quarter.
The decline is part of IREN’s planned transition away from mining operations as the company converts power, data-centre space and equipment capacity for AI Cloud use.
That transition has produced a sharp change in IREN’s revenue mix.
In fiscal 2026, Bitcoin mining still generated most of the company’s annual revenue, while AI Cloud sales were growing from a much smaller base.
IREN has said it intends to substantially complete the transition of its remaining Bitcoin mining operations by the end of calendar 2026.
IREN’s contracted AI expansion
The earnings report comes as IREN continues a major expansion of its GPU infrastructure and data-centre footprint.
The company previously reported more than $4 billion in contracted annualized run-rate revenue for 2026 capacity, with approximately $1 billion of operating ARR at the end of fiscal 2026.
Annualized run-rate revenue is a forward-looking measure based on contracted and commissioned capacity.
It is not the same as revenue recognized under generally accepted accounting principles.
IREN’s customer base includes Microsoft, NVIDIA, Perplexity, Figure AI, Cohere and other AI developers.
The company’s five-year Microsoft arrangement covers GPU services at its Horizon facilities in Childress.
IREN delivered Horizon 1 to Microsoft earlier in 2026 and has been working on additional Horizon deployments.
The company has said its 2026 AI Cloud capacity was largely sold out and that further capacity was being developed for 2027 and beyond.
Capital needs remain a key issue
The rapid expansion requires substantial spending on GPUs, electrical infrastructure, cooling systems, data centres and financing.
IREN has arranged billions of dollars in GPU financing, including investment-grade financing tied to its Microsoft deployment and additional facilities supporting other customers.
The company’s filings also warn that its AI Cloud strategy depends on securing capital, completing construction and commissioning projects on schedule, maintaining customer contracts and managing exposure to a relatively concentrated customer base.
Those factors will remain important for investors as IREN attempts to turn contracted capacity into recurring revenue and cash flow.
What comes next for IREN
The next reporting periods are expected to show whether the company can continue converting newly installed GPU capacity into recognized revenue.
Management’s near-term priorities include commissioning more Horizon facilities, expanding AI Cloud capacity at existing sites and completing the planned wind-down of Bitcoin mining operations.
The results also place greater attention on the timing of customer acceptance, the pace of GPU deployment and the cost of financing the company’s expansion.
IREN’s first-quarter figures show that AI Cloud has quickly become the company’s dominant quarterly revenue stream, but the scale of its planned buildout means execution and funding will remain central to the business outlook.
Frequently Asked Questions
What were IREN’s Q1 FY27 results?
IREN reported $228 million in revenue, a $263 million net loss and $66 million in adjusted EBITDA for the quarter ended September 30, 2026.
How much AI Cloud revenue did IREN generate?
AI Cloud Services revenue was approximately $200 million, nearly triple the $70.5 million reported in the previous quarter.
What happened to IREN’s Bitcoin mining revenue?
Bitcoin Mining revenue fell to approximately $28 million from $66.7 million in the previous quarter as IREN continued shifting capacity to AI Cloud services.
What is IREN’s Microsoft connection?
IREN is developing Horizon data-centre facilities in Childress, Texas, to provide GPU services under a multiyear agreement with Microsoft.
What is the main risk facing IREN after the earnings report?
The main risks include financing the company’s large GPU buildout, completing projects on time, converting contracted capacity into recognized revenue and managing customer concentration.
Fact-Checked: Key figures and company background were checked against IREN’s investor materials, earnings information and SEC filings, with the quarter identified as the period ended September 30, 2026.
Disclaimer: This article is for general news and information purposes only and is not investment advice.