IREN Limited Q1 2027 Earnings Recap

IREN’s shares rose 20.0% after results, with investors responding to AI Cloud revenue nearly tripling to $200 million and operating ARR doubling to $1 billion. The delivery timeline for more than $4 billion of targeted operating ARR has slipped: management now targets January, with a possible delay to the end of February depending on supplier deliveries.

Key Takeaways

• AI Cloud revenue nearly tripled quarter over quarter to $200 million; operating ARR doubled to $1 billion, and adjusted EBITDA margin increased from 14% to 29%.
• Revenue backlog exceeded $20 billion, with two-thirds tied to investment-grade customers. More than $4 billion of contracted, fully funded capacity is still ramping as commissioning proceeds.
• Management cited a customer-requested design change and supplier timing for the schedule slip; it said the data centers are practically complete and the remaining equipment is needed to finish commissioning.
• AI Cloud gross margin was 86%, in line with the prior quarter. GPU paybacks on three- and five-year contracts were around 18 months or lower depending on customer prepayments.
• Mackenzie customer prepayments and GPU financing cover more than 100% of associated GPU CapEx; financing raised since May totaled $6.5 billion, at rates of 6%–9.5%.