IREN pushes back over $4 billion in revenue after Microsoft requests infrastructure upgrade

UPDATE - follow-up to Neocloud IREN says $4 billion in annualized revenue being delayed due to customer request: Neocloud company IREN has pushed out over $4 billion in annual recurring revenue from 2026 to at least January. The decision follows a 26% post-election plunge in the company's stock price and is tied to a customer request and supplier timing. The delay could extend payment collections into February.

Details

IREN co-CEO Daniel Roberts stated on an earnings call that Microsoft is the customer behind the change. Microsoft asked to reconfigure and upgrade network infrastructure to support 200 megawatts of capacity for the newest generation of frontier models. Despite this shift, IREN reported that quarterly revenue climbed 66% to $228 million, beating the $221 million average analyst estimate from LSEG. AI Cloud revenue more than doubled to $200 million, while the company's net loss narrowed from $684 million to $263 million.

Market Pressures

Investor scrutiny has intensified amid a wider market selloff, following a 55% drop in IREN shares over the past month and the Nasdaq experiencing its worst day since April 2025. Competitors have also faced steep declines, with CoreWeave dropping 60% and Nebius falling 48% in the same period. Roberts noted that capital markets have become more selective, shifting focus from contract size to delivery and financing viability. Even so, IREN stated its $4 billion annual recurring revenue target remains fully contracted and funded, with the total revenue backlog growing 22% to $20.3 billion.

Context

IREN plans to spend $15 billion in capital expenditures for the remainder of the fiscal year through a mix of cash, committed financing, and market-dependent funding. The company maintains contracts with Nvidia, Microsoft, and 13 other customers, and reports that compute prices continue to rise.