IREN tops quarterly revenue estimates, delays some Microsoft AI infrastructure deliveries
FILE PHOTO: The words "AI Artificial Intelligence" and a keyboard in this illustration taken October 19, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
Nov 5 : AI data center firm IREN beat quarterly revenue estimates on strong growth in its AI cloud business and pushed back delivery dates for some Microsoft infrastructure following network-design changes requested by the software giant.
Shares of the company rose 4 per cent in extended trading on Thursday. The stock closed down about 17 per cent on a broader selloff in AI infrastructure and data center-related stocks as Democrats' sweeping victory in the US midterms fanned fears of tougher regulation of the technology.
The delay to the delivery for Microsoft will not lead to financial penalties, the company said.
However, IREN pushed the timeline for making operational its more than $4 billion annualized run-rate revenue target to January from year-end. The company said the timing could extend to the end of February.
The Windows maker is tightening oversight of data center projects run by the so-called "neocloud" firms including IREN, Nebius and Nscale amid delays and rising costs, Bloomberg News reported earlier in the day.
Microsoft is stepping away from projects it considers risky and weighing whether to sign new deals with such providers as it focuses more heavily on expanding its own data centers, according to the report.
Companies such as IREN are building energy-intensive data centers they ​can eventually rent out to firms developing and running AI models.
IREN's AI cloud revenue in the first quarter rose to $200 million, from $71 million in the prior three months.
The company said its assets and revenue were supported by contracts with Nvidia, Microsoft and 13 others, with roughly two-thirds of its revenue backlog tied to investment-grade counterparties.
IREN executives said on a post-earnings call that the company exited September with $1 billion in annualized run-rate revenue and expects roughly one-quarter of that amount to be recognized in the December quarter.
The company estimated about $15 billion in capital expenditure over the rest of the fiscal year, as it paces data center and GPU investments.
Total revenue rose to $228 million in the quarter ended September 30, compared with analysts' average estimate of $221.28 million, according to data compiled by LSEG.
