IREN Shares Jump 20% as AI Cloud Revenue Nearly Triples and Net Loss Narrows 61%

IREN shares closed at $21.64 on Nov. 6, up 20%, after the company reported results for its fiscal first quarter of 2027, the quarter ended Sept. 30. AI Cloud revenue rose 182% from the prior quarter to $200 million, lifting total revenue to $228 million from $137 million, while Bitcoin mining revenue fell to $28 million from $67 million.

The 61% figure in the headline is a sequential comparison. IREN's net loss narrowed to $263 million from $684 million in the quarter ended June 30. Against the year-earlier quarter the picture is weaker: IREN then reported net income of roughly $385 million, and total revenue is down about 5% from $240 million as mining revenue shrinks faster than AI Cloud revenue grows. Adjusted EBITDA was $66 million, a 29% margin versus 14% the prior quarter, and the company cited an 86% gross margin in its AI Cloud segment.

The report also carried a delay. IREN said its target of more than $4 billion in annualized recurring revenue, which it describes as fully contracted and fully funded, is now expected around January 31, 2027 and could slip to the end of February, citing a customer-requested design change and supplier timing. Operating annualized recurring revenue has reached about $1 billion, and Horizon 1 has gone into service for Microsoft. The rally followed a rough stretch: one summary noted the stock had fallen more than 40% in the prior month, and neocloud peers also rose on Nov. 6.

What to watch: how quickly the $4 billion target is reached, how much of the remaining capital plan is funded, and whether rising SG&A and interest costs keep outpacing recognized AI Cloud revenue. Net debt rose to about $4.4 billion from $216 million, and the company is financing a large build with debt and customer prepayments. This is not investment advice.