IREN AI Cloud Revenue Reaches $200 Million as ARR Target Moves to 2027

IREN Limited generated $200 million from AI Cloud in the first quarter of fiscal 2027, putting the business at the center of its revenue mix as Bitcoin (BTC) mining income fell.

For the three months ended Sept. 30, 2026, IREN recorded $228 million in total revenue, 66% above the $137 million in the quarter ended June 30. AI Cloud brought in $200 million, including $135 million from services and $65 million from leases. In the June quarter, the segment generated $71 million. Bitcoin mining revenue dropped to $28 million from $67 million.

IREN's net loss for the September quarter was $263 million, compared with $684 million in the June quarter. Adjusted EBITDA, a non-GAAP measure, rose to $66 million from $19 million.

The company now aims to have more than $4 billion in annualized run-rate revenue operational by Jan. 31, 2027. Its prior target was the end of 2026, and the timeline may extend through the end of February 2027. IREN attributed the timing change to a design revision requested by a customer and supplier timing.

IREN defines ARR as an operating metric that annualizes GPU-hour pricing for commissioned GPUs under contract, then adds annualized revenue from storage and ancillary services. The measure is not GAAP revenue, and recognized revenue may be materially lower.

The company’s revenue backlog stood at $20.3 billion on Sept. 30, a 22% increase from the previous quarter. About two-thirds was tied to counterparties or guarantors with investment-grade ratings. IREN's backlog estimate covers amounts that may be recognized from committed contracts, subject to delivery and service-availability requirements.

After quarter-end, IREN expanded an agreement with a customer described as a leading frontier AI lab. It also signed a five-year contract estimated to generate about $22 million in annual revenue per IT megawatt, with customer prepayments covering 90% of associated GPU capital spending. A short-term contract was priced at $40 million per IT megawatt. The company did not disclose customer names or capacity volumes.

The AI buildout follows IREN's earlier $363 million AI computing equipment financing deal. The updated operational target is Jan. 31, 2027, with completion potentially extending to the end of February.