IREN earnings: first quarter of fiscal 2027

IREN, which rents out computing power for artificial intelligence from its own data centres, grew sales and its own measure of operating profit in the first quarter of its 2027 financial year. Its AI cloud business kept the same high gross margin as it grew. The company still made a net loss of $263 million, but that was smaller than the quarter before, mainly because a large write-down did not recur. Underneath, the quarter was about building: it spent far more on hardware and data centres than its operations brought in, and it moved from almost no debt after counting cash to a large net debt in three months. It also pushed back by one to two months its target for when more than $4 billion a year of contracted revenue should be running. ¹

Against what analysts expected

Analysts on average had expected IREN to report a loss per share for the quarter, according to Nasdaq's earnings calendar; the company reported a net loss of $263 million and gave no per-share figure. ¹²

The strong points

• The company's own measure of operating profit, before depreciation, interest, share-based pay and one-offs, more than tripled to $66 million. ¹
• In AI cloud, what is left of each dollar of sales after the direct cost of providing the service held at 86%. ¹

The weak points

• Net debt, borrowings less all cash, jumped in one quarter to $4,430 million from almost nothing. ¹
• The business brought in $529 million of cash from operations but spent $5,146 million on investing. ¹
• The target of more than $4 billion a year of contracted revenue running live has slipped from the end of 2026 to January 2027. ¹

What the company expects

• IREN now aims to have more than $4 billion of yearly revenue running by January 2027 instead of the end of 2026, and says it may slip to February 2027. ¹
• The company expects its cash running costs, excluding share-based pay, to rise again next quarter from $118 million, without saying by how much. ¹

Our verdict on the quarter

A strong report. The business itself grew, with operating returns improving and AI cloud margins holding, and the company gave no sales or profit forecast that moved, though the report is weighed down by a fast rise in debt and a one-to-two-month delay to its main revenue target.

The results as published

• The results release itself
• The filing it came with (SEC)
• The previous results, for what it forecast then

Notes

1. IREN's results release, 5 November 2026: sec.gov. ↩
2. Nasdaq's earnings calendar, 5 November 2026. ↩