IREN Signs $2.8B AI Contracts, Boosts Revenue Target

IREN signed $2.8 billion in new multi-year AI cloud contracts with customers including Microsoft, Nvidia, Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, Fal AI, and Hume AI, and used the deals to raise its 2026 AI Cloud annualized run-rate revenue (ARR) target from $3.7 billion to more than $4 billion, with about 85% of that target now under signed contract.

The announcement matters because IREN has been racing peers such as Applied Digital, TeraWulf, and Core Scientific to convert Bitcoin-mining-era power capacity into AI compute contracts with hyperscalers and AI labs. Landing this volume of multi-year, largely prepaid demand signals that GPU cloud capacity remains scarce even outside the largest hyperscalers.

IREN has scaled its self-built AI cloud footprint from roughly 3 megawatts a year ago to 480 megawatts scheduled for delivery in 2026, with a target of 1.2 gigawatts by 2027. New contracts include customer prepayments equal to about 45% of the associated GPU capital expenditure, and the company held approximately $7.6 billion in cash as of June 30, 2026. Shares of IREN jumped roughly 17% to around $39 following the news, rebounding after a recent pullback tied to investor concern over a $700 million stock award granted to the company's two co-CEOs.

Investors could watch execution against the 1.2-gigawatt 2027 capacity target, how quickly the remaining 15% of the ARR target gets converted to signed contracts, and whether dilution or compensation overhang continues to weigh on sentiment even as the growth story strengthens. Wall Street coverage of the stock currently skews toward Buy ratings, though any consensus price target should be treated as illustrative, not a guarantee of future performance.

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