Update: 2-IREN’s quarterly revenue exceeds expectations, delays delivery of some Microsoft AI infrastructure

Details from the document have been added throughout the article.

Reuters, November 5 - IREN (IREN.O) exceeded market expectations for quarterly revenue on Thursday, driven by strong growth in its artificial intelligence cloud business, with its share price rising more than 4% in volatile after-hours trading.

This artificial intelligence data center company said it would delay the delivery date of some infrastructure due to a request from software giant Microsoft MSFT.O (link) to change network design. However, IREN stated that the delays resulting from these changes would not result in financial penalties.

The delays have forced IREN to push back part of its timeline for reaching its annualized revenue target of over $4 billion from the end of the year to January. The company noted this timing could extend to the end of February.

As reported by Bloomberg earlier in the day, the disclosure comes as the Windows maker has strengthened oversight of data center projects operated by so-called "new cloud" firms, including IREN, Nebius NBIS.O and Nscale, amid project delays and rising costs.

It is reported that Microsoft is gradually pulling out of projects it deems higher risk and weighing whether to sign new contracts with these providers, while focusing more on expanding its own data centers.

Due to market concerns over tighter regulation of the technology industry following the Democratic Party’s gain of control in the US Congress, stocks related to artificial intelligence infrastructure and data centers faced broad sell-offs, with IREN shares closing down roughly 17%.

Companies like IREN are building high-energy-consuming data centers, which can eventually be leased to companies developing and operating AI models.

IREN’s artificial intelligence cloud business revenue grew from $71 million in the previous three months to $200 million in the first quarter.

The company stated that its assets and revenue have benefited from contracts with Nvidia, Microsoft, and 13 other companies, with about two-thirds of its outstanding revenue coming from investment-grade counterparties.

According to data compiled by London Stock Exchange Group (LSEG), total quarterly revenue for the period ended September 30 rose to $228 million, above analysts' average estimate of $221.28 million.

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