Iren shares jump 20% on $228 million quarterly revenue

Iren's fiscal 2027 first quarter, which ended on Sept. 30, showed a sharp acceleration in AI-related business. The neocloud operator, which builds data centers for AI model training and inference workloads, reported revenue of $228 million, up 66% sequentially, with AI cloud revenue climbing 182% to $200 million. The company has already secured over 30,000 acres of land and 5 gigawatts of power to support its 35GW project pipeline.

As demand for AI compute rises, Iren is commanding higher prices. The company said contracted pricing for 3-year and 5-year deals were up 11% and 12%, respectively. Its revenue backlog expanded 22% sequentially to $20.3 billion, and Iren projects capital expenditures of $15 billion in fiscal 2027 to satisfy that demand.

To address investor concerns about the reliability of this demand, Iren noted that two-thirds of its revenue backlog comes from investment-grade companies, including Nvidia and Microsoft. The company also said customers frequently agree to make upfront payments for AI chips. Co-CEO Daniel Roberts emphasized a deliberate approach to growth, citing contracts with customers who renew, returns that justify the capital, and financing attached to each deployment.