Iren pushes $4 billion of 2026 revenue to early 2027 after Microsoft requests delay

Iren said a $4 billion chunk of revenue it expected to receive in 2026 will now be delayed until at least January, possibly February, after Microsoft asked for a network upgrade.

What Happened

The delay stems from a customer‑requested change and supplier timing, with Microsoft needing a re‑configuration to support 200 MW of capacity for new frontier AI models. Co‑CEO Daniel Roberts confirmed the request on the earnings call.

Financials

Quarterly revenue rose 66% to $228 million, beating the $221 million consensus. AI‑cloud sales more than doubled to $200 million, while the balance came from Bitcoin mining, Iren’s legacy business. Net loss narrowed to $263 million from $684 million a quarter earlier. Revenue backlog grew 22% to $20.3 billion, about two‑thirds with investment‑grade counterparties, and the $4 billion ARR target remains fully contracted and funded.

Market Reaction

Shares recovered in after‑hours trading after a 55% drop over the past month and a 26% post‑election plunge. Analysts noted that capital markets are now asking whether contracts can be delivered profitably. Roberts said there is a disconnect between public‑market sentiment and customer‑level activity. Comparable AI providers CoreWeave and Nebius have also seen steep share declines.

Context

The AI‑cloud market is seeing tighter financing as interest rates rise, putting pressure on companies that rely heavily on debt. Delays like Iren’s highlight how large customers can reshape revenue timing, affecting investor confidence in the sector.