IREN Limited (NASDAQ:IREN) shares are trading higher Friday after the company reported better-than-expected first-quarter fiscal 2027 revenue Thursday after the market closed.

The move may also reflect a recovery after losses Thursday, when shares of crypto-linked companies traded lower amid a drop in Bitcoin as investors weighed the post-midterm election results. Crypto-skeptic Sherrod Brown will return to the Senate, defeating crypto PACs that spent over $60 million to counter his campaign.

• IREN stock is surging to new heights today. Why are IREN shares rallying?

IREN Beats on Revenue as AI Cloud Revenue Jumps 182% QoQ

IREN reported a first-quarter loss of 66 cents per share, wider than the consensus estimate of a loss of 48 cents. The company also reported revenue of $228.0 million, up 66% from the prior quarter, beating the consensus estimate of $221.281 million. AI Cloud revenue rose 182% from the prior quarter to $200 million, with a segment gross margin of 86%, in line with the prior quarter.

Revenue backlog rose 22% from the prior quarter to $20.3 billion, with about two-thirds tied to investment-grade customers. IREN said Horizon 1 went into service for Microsoft Corporation (NASDAQ:MSFT) with NVIDIA Corporation (NASDAQ:NVDA) Exemplar status, and that it expanded its contract with a leading frontier AI lab after the quarter ended.

"This quarter Horizon 1 went into service for Microsoft with NVIDIA Exemplar status, AI Cloud revenue nearly tripled to $200 million, and operating ARR doubled to a billion," said Daniel Roberts, IREN’s co-founder and co-CEO.

IREN Signs New Contracts, Advances $4 Billion ARR Target to January

After the quarter ended, IREN signed a five-year contract at about $22 million per megawatt, with the customer prepaying 90% of the GPU capital expenditures, and a short-term contract at $40 million per megawatt. The company also contracted H100 GPUs at double the previous pricing, and said contracted pricing is up 11% on three-year deals and 12% on five-year deals.

IREN said its target of more than $4 billion in annual recurring revenue is fully contracted and funded, but it is now targeted for January 2027, from year-end 2026, after a customer-requested design change and supplier timing, and it may extend to February.

IREN expects $15 billion of remaining planned fiscal 2027 capital spending, with $9 billion covered by cash and committed GPU financing and prepayments, and $6 billion from targeted financing and other sources subject to market conditions.

IREN Shares Power Higher

IREN Price Action: At the time of publication. IREN shares are trading 16.35% higher at $20.98, according to data from Benzinga Pro.

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