IREN raised its 2026 annualized run-rate revenue target to more than $4 billion on Monday after signing new multi-year cloud services contracts worth $2.8 billion in total contract value. The company announced that about 85% of its year-end ARR target is now under contract, with customers including Microsoft, Nvidia, Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, and Hume AI. The announcement came after IREN shares lost more than 22% during a seven-session sell-off from July 9 to July 17, and slumped more than 43% over the past month.
IREN shares surged 9% in premarket trading on Monday, putting the stock on track to end the seven-session losing streak. The stock has shed around 22% of its value so far this year.
IREN Raises 2026 ARR Target to Over $4 Billion With New Cloud Contracts
IREN raised its 2026 ARR estimates to more than $4 billion, up from $3.7 billion, after signing new multi-year cloud services contracts with leading AI developers. The new agreements, worth $2.8 billion in total contract value, mean about 85% of IREN's year-end ARR target is now under contract, according to the company.
The company's customer roster includes Microsoft, Nvidia, Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, and Hume AI, among others. The company said its recent contracts include customer prepayments that cover about 45% of GPU capital expenditures, reducing funding needs.
Daniel Roberts, Co-Founder and Co-CEO, stated: "In the past 12 months, we have expanded from approximately 3MW of self-built AI Cloud capacity to 480MW being delivered this year, with 1.2GW targeted for 2027, broadening our customer base across hyperscalers, enterprises and AI developers."
Freedom Capital Upgrades IREN to Buy With $58 Price Target
Earlier this month, Freedom Capital upgraded IREN stock to 'Buy' from 'Hold' while maintaining its $58 price target, according to The Fly. This represents a near 57% upside potential from current levels. The brokerage said the stock's pullback, alongside that of other AI cloud peers, had created a more attractive entry point, leaving "enough upside" to justify the upgrade.
Freedom Capital expects IREN's revenue to surge from $717 million this year to $3.1 billion in fiscal 2027 and $8.5 billion in fiscal 2028 as it expands capacity.
Retail Sentiment on Stocktwits Remains Extremely Bullish
Retail sentiment on Stocktwits remained 'extremely bullish' over the past 24 hours, amid 'high' message volumes. IREN was also among the top trending tickers at the time of writing. One user expects a "huge revaluation" of the stock after the news.
FAQ
What did IREN announce on Monday regarding its 2026 revenue target?
IREN raised its 2026 annualized run-rate revenue target to more than $4 billion, up from $3.7 billion, after signing new multi-year cloud services contracts worth $2.8 billion in total contract value.
Why did IREN stock surge in premarket trading on Monday?
IREN shares surged 9% in premarket trading on Monday after the company announced new multi-year cloud services contracts worth $2.8 billion and raised its 2026 ARR target to over $4 billion, with about 85% of its year-end ARR target now under contract.
What price target did Freedom Capital set for IREN stock?
Earlier this month, Freedom Capital upgraded IREN stock to 'Buy' from 'Hold' and maintained a $58 price target, representing a near 57% upside potential from current levels, according to The Fly.
