IREN Stock Rebounds 23% From 52-Week Low as AI Cloud Revenue Nearly Triples and Microsoft Project Goes Live

Shares of IREN Ltd. rebounded nearly 23% on Friday after the AI cloud provider reported surging revenue, recovering part of a steep selloff triggered by concerns about its relationship with Microsoft.

IREN shares rose $4.09, or 22.71%, to $22.13 in Friday trading, with about 24.6 million shares traded, lifting the company's market value to about $8.8 billion.

The rebound followed a fresh 52-week low of $17.155 on Thursday, when shares were hammered after a Bloomberg report that Microsoft was tightening oversight of data center projects involving IREN, Nebius and Nscale.

Revenue surge

IREN reported a first-quarter loss of 66 cents a share, wider than the 48-cent loss expected, but revenue of $228.0 million, up 66% from the prior quarter, beat the $221.281 million estimate.

AI Cloud revenue nearly tripled to $200 million from $71 million, while Bitcoin mining revenue declined to $28 million from $67 million.

Co-CEO Daniel Roberts highlighted the milestones. He said Horizon 1 went into service for Microsoft with Nvidia Exemplar status, and "AI Cloud revenue nearly tripled to $200 million, and operating ARR doubled to a billion."

Backlog and losses

Revenue backlog rose 22% from the prior quarter to $20.3 billion, about two-thirds with investment-grade counterparties. The net loss narrowed to $263 million from $684 million in the prior quarter.

Target delayed

There was one concern. IREN said its $4 billion-plus annual recurring revenue target has been pushed from year-end 2026 to January 2027, potentially into February, due to a customer-requested network upgrade at its Texas data center tied to Microsoft's requirements.

Spending is heavy. The company spent about $5 billion in capital expenditures in the quarter.

The stock remains far below its highs after a bruising stretch for AI infrastructure companies.