Investing.com -- Needham lowered its financial estimates for Iris Energy for fiscal years 2026 and 2027, citing a delayed ramp-up of AI cloud revenue through calendar year 2026. The firm said most revenue recognition from major contracts will now shift to fiscal third and fourth quarters.

The investment firm also reduced its bitcoin contribution projections as mining operations scale down and bitcoin prices have fallen.

Needham expects Iris Energy to reach an annualized AI cloud revenue run rate of approximately $3.7 billion by the first quarter of calendar year 2027. Mining revenues are projected to approach zero by year-end as mining capacity gets replaced with graphics processing units for AI-dedicated workloads.

Iris Energy announced it signed a transmission connection agreement for an 800-megawatt data center campus in Bundey, South Australia. This site marks the company's first planned Australian AI data center. Management targets initial energization from 2028, with early works and procurement starting after regulatory approvals.