The Zhitong Finance App learned that IREN Ltd (IREN.US) released the results for the first quarter of the 2027 fiscal year ending September 30, 2026 after the market on November 5. The company achieved revenue of US$228 million for the quarter, up 66% month-on-month, better than market expectations of US$221 million; net loss of US$263 million, a sharp narrowing from the previous quarter's US$684 million; adjusted EBITDA of US$66 million, a sharp increase of 247% month-on-month, and an adjusted EBITDA margin of 29%; loss per share was 66 cents, and the market expects a loss of 48 cents per share.
AI cloud business: revenue nearly tripled month-on-month, gross profit margin 86%
The AI cloud business is the absolute protagonist of this quarter. AI cloud revenue for the quarter reached US$200 million, up 182% month-on-month (US$71 million in the previous quarter), of which AI cloud service revenue was US$135 million and AI cloud rental revenue was US$65 million; the AI cloud division's gross margin reached 86%, the same as the previous quarter.
The core driver of the revenue jump was the delivery of the Horizon 1 data center. The company's operating IT capacity (IT-MW) increased 127% month-on-month, from 41 megawatts to 93 megawatts (about 0.1 GW).
The forward-looking indicators are equally strong:
Operating ARR (annualized operating revenue) reached US$1 billion, doubling month-on-month (US$500 million at the end of June);
Revenue backlog (backlog) reached $20 billion, up 22% month-on-month, including Microsoft $9.6 billion (47%), Nvidia $3.4 billion (17%), and AI developers/frontier labs/channel partners $7.2 billion (36%); about two-thirds ($13 billion) came from investment-level counterparties;
The weighted average remaining period of new contracts signed in the first quarter of this fiscal year was over 4 years. The price of the 5-year contract was $22-40 million per megawatt (IT) (the short-term pricing for new contracts reached 40 million US dollars/megawatt after the quarter).
It should be pointed out that the company delayed reaching the target of 4 billion US dollars of ARR from the end of 2026 to January 2027. The company explained that it was due to changes in customer requirements and the pace of supplier delivery, and suggested that it may be delayed until the end of February 2027 at the latest.
The quarterly report also revealed that after the quarter ended, the company reached a capacity expansion cooperation with a cutting-edge AI laboratory, and the price of signing the new H100 contract was 100% higher than the previous Prince George contract.
Data center and electricity: 0.8 GW under construction, 5 GW electricity, 35 GW development pipeline locked
The company emphasizes its three-tier vertical integration model of “AI cloud - data center - land and electricity”: data center assets are about 6.6 billion US dollars, design life span is more than 20 years, cash investment and no collateral; more than 30,000 acres of land have been locked in.
The capacity under construction is 0.8 GW, spanning multiple parks such as Prince George, Mackenzie, Childress, Sweetwater 1, Canal Flats, etc., of which the initial 0.3 GW has already entered the final construction stage;
More than 5 GW of electricity has been locked in, and a development pipeline of more than 35 GW (as of November 5, 2026, at various stages before the signing of the grid-connected agreement; this is a speculative project);
Leading the industry in execution speed: Horizon 1 takes only 14 months from groundbreaking to commissioning the GB300 cluster (construction started in June 2025 and completed in November 2026), and the industry benchmark (construction without GPU deployment) is 18 months;
The company has ordered GPUs for an additional 0.3 GW of AI cloud capacity, and the production expansion plan has been fully funded at this stage.
In addition, the company's net debt rose to US$4.43 billion in cash and restricted cash at the end of the quarter; of the remaining US$15 billion in FY27 capital expenditure of US$15 billion, there is still US$6 billion to be funded. Bitcoin mining revenue fell to 28 million US dollars, and mining machines continued to be decommissioned.
By Thursday's close, IREN closed 17% lower. After the earnings report was released, the stock rose more than 6% after the market.