IREN revenue beats estimates as Microsoft project delays push back target

IREN reported quarterly revenue of $228 million on November 5, exceeding expectations as its AI cloud business expanded. The data center company also disclosed delays to some Microsoft infrastructure, pushing back part of the timetable associated with its revenue target.

Revenue for the quarter ended September 30 surpassed the $221.28 million average analyst forecast compiled by LSEG. AI cloud revenue increased to $200 million from $71 million over the preceding three months.

IREN said Microsoft had asked for network design changes, requiring later delivery of some infrastructure. The company said delays resulting from those changes would carry no financial penalties. Part of the schedule for bringing capacity supporting its annualized run-rate revenue target of more than $4 billion into operation shifted from year-end to January, with timing potentially stretching to the end of February.

Shares gained more than 4% during volatile extended trading. They had finished the regular session about 17% lower amid a wider selloff affecting AI infrastructure and data center stocks.

IREN said contracts with Nvidia, Microsoft and 13 other counterparties supported its assets and revenue. Roughly two-thirds of its revenue backlog was linked to investment-grade counterparties.

A media report said Microsoft was increasing scrutiny of projects operated by providers including IREN, Nebius and Nscale amid delays and higher costs. Microsoft was withdrawing from projects it viewed as risky and considering whether to enter new agreements with such providers, according to the report.