IREN Shares Rise in Pre-Market Trading on Earnings Report, AI Growth Outlook
Sydney-based IREN posted record fiscal first-quarter results, boosted by its growing AI ambitions and the landmark $9.7 billion AI cloud deal with Microsoft. For the quarter ended September 30, the company reported revenue of $240.3 million and net income soaring to $384.6 million, reflecting sharp growth across its core operations.
The strong performance was driven by surging bitcoin mining revenue and rapid acceleration in AI cloud bookings. IREN said its partnership with Microsoft positions it as a key player in the expanding AI infrastructure market, aligning its high-performance data centers with next-generation computing demand.
Earnings and Revenue Snapshot
Revenue
$240.3M (+355% YoY)
Net income
$384.6M (vs. $51.7M loss a year earlier)
Bitcoin mining revenue
$232.9M (≈50× YoY)
These figures reflect continued hash-rate expansion and higher monetization, alongside early AI cloud contributions.
What the IREN Microsoft $9.7 billion AI cloud deal means
Microsoft agreed to a five-year, $9.7B contract for AI compute hosted by IREN, supported by a ~20% prepayment. IREN will source Nvidia GPUs and related gear via a separate ~$5.8B agreement with Dell, with deployments centered on the 750MW Childress, Texas campus and new liquid-cooled data centers (≈200MW IT capacity). The arrangement helps Microsoft bridge AI capacity gaps into 2026 while accelerating IREN’s AI cloud flywheel. Reuters+1
Timeline for the IREN Microsoft $9.7 billion AI cloud deal
Nov. 3, 2025
Deal announced.
2025–2026
Phased GPU deployments at Childress; prepayment supports capex.
Through 2026
Milestone-based delivery; capacity ramps as substations and liquid-cooling come online.
AI Cloud Growth Outlook
IREN is targeting $3.4B in AI Cloud ARR by end-2026 alongside a planned expansion to roughly 140,000 GPUs. Recent multi-year contracts with Together AI, Fluidstack, and Fireworks AI add demand visibility and customer diversification beyond Microsoft.
Infrastructure and Power Roadmap
Childress, TX (750MW)
Ramping liquid-cooled “Horizon” data centers; ~200MW IT capacity planned in near-term phases.
British Columbia (160MW)
Transitioning from ASICs to GPUs by end-2026.
Sweetwater Hub (≈2GW)
Key substations slated for energization over the next two years.
Market Reaction
IREN shares fell more than 12% on Thursday but rose about 2% in Friday pre-market trading, reflecting digestion of the earnings print and AI ramp timeline.
Context & Analysis
Bitcoin miners’ move into AI compute leverages power access and data-center know-how. IREN’s long-dated, prepaid anchor tenant (Microsoft) reduces demand risk, but execution hinges on timely GPU procurement, power delivery, and construction milestones. Multi-tenant wins (Together AI, Fluidstack, Fireworks AI) broaden mix, yet capital intensity and supply chain timing remain key variables.
Conclusion
IREN’s record-breaking quarter and its landmark Microsoft partnership signal a major growth phase ahead, supported by a rapidly expanding AI customer base. The company is poised for a significant scale-up through 2026 as it deepens its presence in high-performance computing and AI infrastructure.
Investors should monitor key indicators such as quarterly ARR growth, GPU deployment, and the pace of new power-site energization. These metrics will be critical in assessing whether IREN’s AI-driven expansion plan stays on course and continues to deliver the momentum seen in its recent results.
FAQs
Q : What did IREN report for the latest quarter?
A : Record revenue of $240.3M and net income of $384.6M for the quarter ended Sept. 30.
Q : What is the scope of the IREN Microsoft $9.7 billion AI cloud deal?
A : A five-year contract with a ~20% prepayment for Nvidia GPU-powered AI capacity, primarily at Childress, Texas.
Q : What ARR is IREN targeting from AI cloud?
A : About $3.4B by end-2026, supported by Microsoft and new multi-year customers.
Q : Which new AI customers did IREN add?
A : Together AI, Fluidstack, and Fireworks AI.
Q : How many GPUs does IREN plan to deploy?
A : Roughly 140,000 GPUs by end-2026, with phased rollouts.
Q : How did the stock trade around the news?
A : Down >12% Thursday; up ~2% in Friday pre-market.
Q : What infrastructure steps are next?
A : Liquid-cooled data centers at Childress, transition of BC sites to GPUs, and Sweetwater substation energizations.
Facts
Event
IREN posts record Q1 results; secures five-year Microsoft AI cloud contract; outlines $3.4B AI Cloud ARR targetDate/Time
2025-11-07T15:00:00+05:00Entities
IREN (formerly Iris Energy); Microsoft; Dell Technologies; Together AI; Fluidstack; Fireworks AIFigures
Revenue $240.3M (+355% YoY); Net income $384.6M; Bitcoin mining revenue $232.9M; Contract value $9.7B; Target 140k GPUs; Target AI Cloud ARR $3.4B (by end-2026)Quotes
“IREN continues to execute with discipline, delivering record results and meaningful progress in our AI Cloud expansion.” — Daniel Roberts, Co-founder & Co-CEO (statement) CoinDeskSources
CoinDesk (earnings recap) CoinDesk; Reuters (deal details) — Reuters