IREN Stock Results Show AI Customers Paying Double for Older Nvidia Chips on New Deals
IREN, which rents out AI computing power, said on November 5, 2026 that buyers pay more, with older Nvidia H100 chips renting at double their old price on new deals and one customer agreeing to prepay 90% of that customer's chip cost. IREN still lost $263 million, and its goal of a $4 billion yearly revenue pace slipped into 2027.
The short answer. IREN reported on November 5, 2026, after AI stocks fell hard on worries that the AI building boom will slow. Its new deals show buyers of AI computing paying higher prices and agreeing to pay sooner. One customer agreed to prepay 90% of what IREN spends on that customer's chips, against about a third on Microsoft's 2025 deal. That matters beyond IREN's owners. On the day investors feared AI spending would slow, one company's own contracts show buyers still paying up for computing power. IREN's own trouble is in construction. It is late switching on new computers for Microsoft, and total revenue was 5% below a year earlier as bitcoin mining shrank.
IREN's quarter in three numbers
Show the data
| Category | Value |
|---|---|
| Microsoft, 2025 | 33% |
| July 2026 deals | 45% |
| Newest deal | 90% |
On this page
Every company reporting the same week, with its date and time, is in StockTitan's Earnings Calendar for the Week of November 2, 2026.
What is IREN stock, and is IREN a neocloud?
Yes. A neocloud is a younger company that fills its own data centers with AI chips and rents them out, the way Amazon and Microsoft rent computers in their clouds. IREN used to mine bitcoin, and AI rentals are now 88% of its sales.
IREN's quarterly report says it owns all three layers of its business: the data centers with their land and power, the chips inside them, and the software that runs them. Its customers include Microsoft, Nvidia and AI startups such as Perplexity and Figure AI, which IREN named in a July 20, 2026 release. Rivals of the same kind include CoreWeave and Nebius, whose borrowing StockTitan looked at in CoreWeave Debt: $10.6 Billion Due Through 2027.
The switch from bitcoin is well along. In the quarter that ended September 30, 2026, AI cloud revenue rose 182% from the previous quarter to $200 million. IREN began recording revenue from Microsoft's first building after Microsoft accepted it in August. Over the year, bitcoin mining shrank faster than AI grew, so total revenue was 5% below a year earlier. IREN aims to substantially complete the move away from mining by December 31, 2026.
Show the data
| Category | AI cloud | Bitcoin mining |
|---|---|---|
| Sep 2025 | $7M | $233M |
| Dec 2025 | $17M | $167M |
| Mar 2026 | $34M | $111M |
| Jun 2026 | $71M | $67M |
| Sep 2026 | $200M | $28M |
Are IREN's AI customers paying more for computing power?
IREN says yes. Prices on its recent contracts are up 11% to 12%, and an older Nvidia chip now rents at double its earlier price on a new deal. The customer on its newest five-year contract also agreed to cover most of the chip cost in advance.
The release gives two signs. First, IREN says its contract prices keep rising. Its three-year deals signed from April to September 2026 bring in 11% more a year than the earlier deals it compares them with, and its five-year deals 12% more. IREN measures that per megawatt, the amount of power a block of chips uses.
Second, an older chip got more expensive. After the quarter ended, IREN signed new contracts for Nvidia's H100 chips at double the price of its earlier H100 contract at Prince George, its site in British Columbia, Canada. IREN first earned AI money from H100s in early 2024, its May 2024 results show. Today it installs Nvidia's newer GB300 systems for Microsoft. IREN's own quarterly report warns that new chip designs can lower the rental price of older ones. This time the older chip's price went up.
Short deals also pay well. A short-term deal signed after the quarter will bring in about $40 million a year per megawatt. That is about 1.8 times the five-year deal signed at the same time.
The prepayments add to the picture. When Microsoft signed its $9.7 billion contract in November 2025, its prepayment covered about a third of what IREN agreed to pay Dell for the chips and their equipment. In July 2026, IREN said its recent contracts carried prepayments of about 45% of the chip cost. The five-year contract signed after this quarter covers 90%. That customer agreed to cover almost the whole chip bill before its service starts.
IREN's results presentation works through an example five-year deal, which it says is not a forecast. In it, a prepayment that size cuts the time IREN needs to earn back its chip spending from 2.4 years to 0.4 years.
| Contract | What IREN reported |
|---|---|
| Microsoft, signed November 2025 | $9.7 billion over five years, 20% of the contract value prepaid; chips and equipment bought from Dell for about $5.8 billion |
| Recent contracts, July 2026 release | Prepayments about 45% of the chip cost |
| Recent contracts, August 2026 release | Prepayments 45% to 55% of the chip cost; three-year deals above $20 million a year per megawatt |
| Five-year contract, signed after September 30, 2026 | About $22 million a year per megawatt; prepayment terms covering 90% of the chip cost |
| Short-term contract, signed after September 30, 2026 | $40 million a year per megawatt |
| H100 contracts, signed after September 30, 2026 | Double the price of the earlier H100 contract at Prince George |
Source: IREN releases of November 3, 2025, July 20, 2026, August 27, 2026 and November 5, 2026. Revenue per megawatt is IREN's estimate of yearly revenue; prepayments are amounts customers agreed to pay before service starts.
The signed work keeps piling up. IREN's backlog rose 22% in the quarter to $20.3 billion of revenue signed but not yet earned. About two thirds of it is with customers that have investment-grade credit ratings, the grades that mark a borrower as safe, IREN says.
Why did IREN delay its $4 billion revenue pace target?
Because the buildings for Microsoft are running late. Microsoft asked for a change to the network design, and suppliers were slow. IREN now expects its signed contracts to be fully running in January 2027, possibly February, instead of by December 31.
The target is a yearly revenue pace of more than $4 billion from chips that are switched on and under contract, a measure IREN calls annualized run-rate revenue. IREN warns that the revenue it actually books may be much lower. The goal grew over the past year, and each time its date was the end of 2026.
| Release | Yearly revenue pace target | Date set |
|---|---|---|
| February 5, 2026 | $3.4 billion | End of 2026 |
| May 7, 2026 | $3.7 billion | End of 2026 |
| July 20, 2026 | More than $4 billion | End of 2026 |
| November 5, 2026 | More than $4 billion | January 31, 2027, may extend to the end of February |
Source: IREN results and contract releases. Annualized run-rate revenue is IREN's operating measure, not revenue under accounting rules.
The November 5 release blames "a customer-requested change and supplier timing". The quarterly report names the customer. "At Microsoft's request, we are implementing a network design change across the Horizon deployments," it says, referring to the four buildings IREN is finishing for Microsoft in Childress, Texas. For delays caused by a change Microsoft requested, the report says, the contract extends delivery dates without delay credits, the discounts owed for lateness. The report adds that talks on delivery dates, fees, credits and cost refunds are going on at the same time.
Bloomberg told a different side the same morning. It reported at 11 a.m. ET on November 5, citing people familiar with the matter, that Microsoft is tightening oversight of some data center projects from IREN, Nebius and Nscale. Bloomberg said some of the recent problems involved cabling at IREN's Texas site. It added that the two companies met the week before and negotiated a revised timeline that may push completion back by weeks or months. A Microsoft spokesperson told Bloomberg that adjusting plans when circumstances change is normal practice. IREN declined to comment to Bloomberg.
The gap to close is large. Co-chief executive Daniel Roberts said in the release that the pace from chips already running "doubled to a billion" in the quarter. That is about a quarter of the $4 billion goal.
IREN says the goal is fully funded. That counts loans already arranged but not yet taken, and prepayments not yet received, subject to its lenders' conditions. IREN plans $15 billion of remaining spending in its fiscal year to June 2027. It says $9 billion is covered by cash, committed loans and prepayments, and $6 billion depends on new financing for later capacity.
Is IREN profitable?
No. IREN lost $263 million in the quarter. Renting out chips earns much more than it costs to run them. So far, other costs are bigger still, mainly the wear on new chips and buildings, pay in shares and interest.
IREN puts its AI cloud gross margin at 86%, meaning 86% of that revenue is left after the direct costs of running the chips. Its measure leaves out site costs and depreciation, the cost of chips and buildings wearing out. Across both businesses, revenue minus direct costs was $182 million. That gross profit also leaves out depreciation. The chart shows where it went.
Show the data
| Step | Value |
|---|---|
| Gross profit | $182M |
| Staff, offices and other running costs | -$118M |
| Pay in shares | -$106M |
| Depreciation and amortization | -$148M |
| Finance expense less interest income | -$22M |
| Other items | -$51M |
| Net loss | -$263M |
The biggest single cost is depreciation. Pay in shares, mostly to staff and directors, was another large cost. A year earlier IREN showed a $385 million profit, but it came from a $665 million paper gain on financial contracts.
Much of IREN's cash comes from customers paying early. Operations brought in $529 million of cash, helped by a $645 million rise in deferred revenue, cash customers paid before IREN earned it. Without that rise, operations would have used about $116 million.
For owners, three more facts matter. IREN pays no dividend, its quarterly report says. It is selling new shares to pay for the build, and the 17.4 million it sold after September 30 went for about $36 each. It also owes $10.04 billion, most of it in bonds that can turn into shares.
| Owner question | What IREN reported |
|---|---|
| Dividend | None declared in the quarter or a year earlier |
| Shares outstanding | 380.7 million on June 30, 2026; 406.9 million on September 30; 424.4 million on October 30 |
| Shares sold after September 30 | 17.4 million for about $630 million before costs |
| Debt owed | $10.04 billion, including $6.75 billion of convertible bonds due from 2029 to 2033 |
| Cash | $3.52 billion, plus $2.26 billion held under loan terms |
| Investing cash used in the quarter | $5.15 billion, including $4.82 billion for hardware, buildings and other equipment |
| Buybacks | None reported |
Source: IREN Form 10-Q for the quarter ended September 30, 2026, Notes 1, 19, 20 and 25, Item 2 and the cash flow statement.
Could Texas data center limits affect IREN?
Much of IREN's building is in Texas, where the day's fear is centered: its Childress campus for Microsoft and its planned Sweetwater campus of 2 gigawatts, or 2,000 megawatts. Its other sites are in Canada, Oklahoma, Spain and Australia.
IREN's results came at 4:01 p.m. ET on November 5, at the end of a bad day for AI stocks. Investors sold them on worries that new Democratic majorities and governors will make data centers harder to build, as StockTitan explained in Why AI Stocks Are Down Today. IREN stock closed at $18.03, down 17% on the day, StockTitan real-time Nasdaq data shows. That was its lowest close of 2026, StockTitan's daily price history shows. After the release, the real-time data shows it at $18.86 at 5:15 p.m. ET.
On August 3, 2026, Governor Greg Abbott ordered a review of all data centers seeking a grid connection. On September 21, he told the state's environment agency to halt data center permits until that review ends. CNBC reported on November 4 that Gina Hinojosa won the race to succeed him, and that she had pledged an immediate moratorium, a pause, on data centers in Texas.
IREN's own list of risks in the release names the review ordered by the Governor of Texas. The 750 megawatt Childress campus holds the four Microsoft buildings, and one of them is already in service. In September 2026, IREN said Sweetwater had a conditional place in the Texas grid operator's first batch of large new connections. Its first 300 megawatts there are due in late 2027. No source says whether any of the state's orders applies to IREN's Texas projects.
What to watch
- Whether the signed contracts are fully running by January 31, 2027, or slip into February: IREN's next quarterly report, for the quarter ending December 31, 2026.
- The outcome of IREN's talks with Microsoft on dates, fees and credits: the same report.
- Whether Texas grid or permit decisions touch Childress or Sweetwater: the outcome of the grid review the governor ordered.
Our numbers
These figures are our calculations from the sources linked in this article. The prepayment shares come from different contracts on slightly different cost bases, and the short and five-year deals may differ in more than their length.
- Microsoft's prepayment, about a third of the chip cost: 20% of the $9.7 billion contract against the $5.8 billion Dell purchase of chips and equipment.
- About 1.8 times the yearly revenue per megawatt: $40 million on the short deal against about $22 million on the five-year deal.
- AI rentals at 88% of sales: $200 million of $228 million.
- Total revenue down 5% from a year earlier: $228 million against $240 million.
- About a quarter of the goal: the $1 billion pace Roberts gave against more than $4 billion.
- About $116 million of operating cash used, leaving out the rise in deferred revenue: $529 million less $645 million.
- About $36 a share: $630 million for 17.4 million shares.
- The loss explained: $182 million of gross profit, less $118 million of running costs, $106 million of pay in shares, $148 million of depreciation, $22 million of finance expense net of interest income and $51 million of other items.
Frequently asked questions
Is IREN stock profitable?
No. IREN lost $263 million, or 66 cents a share, in the quarter that ended September 30, 2026. Its adjusted EBITDA was $66 million, a company measure that leaves out depreciation, pay in shares, interest and some one-time items.
Is IREN a neocloud?
Yes. IREN owns data centers full of AI chips and rents that computing power to companies such as Microsoft and Nvidia, which is what neoclouds like CoreWeave and Nebius do. It still mines some bitcoin and plans to substantially complete that switch by the end of 2026.
Why is IREN stock down today?
IREN stock fell 17% in regular trading on November 5, 2026, closing at $18.03, on a day AI stocks fell broadly, StockTitan real-time Nasdaq data shows. After its results at 4:01 p.m. ET, it traded at $18.86 at 5:15 p.m. ET, about 5% above that close, the same data shows.
Does IREN pay a dividend?
No. IREN declared no dividends in the quarter or a year earlier, its quarterly report says, and it is raising money by selling new shares.
Who are IREN's biggest customers?
IREN names Microsoft and Nvidia among 15 customers. Its three biggest customers made up 28%, 24% and 18% of revenue in the quarter, its quarterly report says, without naming them. Its results presentation puts $9.6 billion of its signed future revenue with Microsoft and $3.4 billion with Nvidia.
Sources
- IREN Reports Q1 FY27 Results, November 5, 2026
- IREN Reports FY26 Results, August 27, 2026
- IREN Signs $2.8bn in New Customer Contracts, July 20, 2026
- IREN Business Update and Q3 FY26 Results, May 7, 2026
- IREN Reports Q2 FY26 Results, February 5, 2026
- IREN Secures $9.7bn AI Cloud Contract with Microsoft, November 3, 2025
- IREN's 2GW Sweetwater Hub Included in ERCOT Batch Zero, September 8, 2026
- IREN Reports Third Quarter FY24 Results, May 15, 2024
- IREN Q1 FY27 Results Presentation, November 5, 2026
- IREN Form 10-Q for the quarter ended September 30, 2026
- Office of the Texas Governor, data center audit directive, August 3, 2026
- Office of the Texas Governor, data center permit directive, September 21, 2026
The information provided in this article is for educational and informational purposes only. It does not constitute financial advice, investment recommendation, or an endorsement of any particular investment strategy. Past performance does not guarantee future results. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.