IREN delays $4B in annual revenue after Microsoft requests network upgrade

Neocloud provider IREN reported that more than $4 billion in annual recurring revenue slated for 2026 is being delayed until at least January. The shift may push payments into February. On an earnings call, co-CEO Daniel Roberts said the delay stems from a request by Microsoft alongside supplier schedules.

Roberts explained that Microsoft asked to alter and upgrade network systems. The changes are intended to prepare 200 megawatts of power capacity to run advanced frontier artificial intelligence models. While IREN stock rebounded slightly in extended trading, the shares had fallen 55% over the prior month.

Revenue jumps despite broader market pressure

Quarterly revenue rose 66% from the prior period to $228 million, topping average analyst projections of $221 million. Revenue from AI cloud operations more than doubled to reach $200 million. The company generates the remainder of its sales from bitcoin mining, which served as its original business prior to expanding into AI infrastructure.

The company reported a net loss of $263 million, down from a $684 million loss in the previous quarter. At the same time, its total contracted backlog grew 22% to $20.3 billion. IREN stated that about two-thirds of that backlog involves investment-grade clients, and the delayed $4 billion target remains fully contracted and financed.

Heavy spending plans and financing limits

The earnings come amid broader stock market declines for specialized AI infrastructure firms. Over the past month, CoreWeave dropped 60% and Nebius fell 48%. Public markets have raised doubts about whether heavily indebted, cash-burning cloud firms can maintain their buildouts as financing costs rise.

IREN outlined plans for $15 billion in capital expenditures through the rest of the fiscal year. This includes $9 billion in cash and secured loans, plus $6 billion in target funding that depends on market conditions. To manage exposure, the company noted it has held off on buying all the graphics processing units it will need next year. Roberts also noted that one customer agreed to fund 90% of the equipment costs upfront for a deployment.