IREN said AI Cloud supplied most of its $228 million in revenue in fiscal 2027’s first quarter, as the company redirected computing capacity and recorded a narrower quarterly net loss.
The company’s contracted revenue backlog reached $20.3 billion, 22% higher than in the preceding quarter. Operating annual recurring revenue (ARR) doubled to $1 billion, IREN said.
IREN is aiming to exceed $4 billion in ARR by January 2027. It said a customer-requested design revision and supplier scheduling may push the timing into February, while the goal remains backed by contracts and funding. The schedule change was detailed in an earlier report on IREN’s revenue target.
For the quarter ended Sept. 30, AI Cloud revenue was $200 million, compared with $71 million in fiscal fourth-quarter 2026, a sequential increase of 182%. The segment’s gross margin was 86%. IREN recorded total revenue of $228 million, 66% above the prior quarter.
Bitcoin (BTC) mining generated $28 million, down from $67 million in the previous quarter. IREN linked the decline to its shift of capacity toward AI workloads. The company’s net loss was $263 million, compared with $684 million a quarter earlier.
IREN also said its first Microsoft data hall began operating during the quarter with NVIDIA GB300 systems. The facility is part of a five-year, $9.7 billion cloud-services contract.
