IREN Shares Jump on $2.8 Billion in AI Contracts, Raised Revenue Target

Shares of IREN Limited (NASDAQ:IREN) rose 7% on Monday after the company announced it has secured $2.8 billion in new multi-year cloud services contracts with artificial intelligence developers. The announcement highlights sustained, high-level demand for AI computing infrastructure.

Upgraded Financial Outlook

In response to the new agreements, IREN raised its year-end 2026 AI Cloud annualized run-rate revenue (ARR) target to over $4 billion, an increase from its previous forecast of $3.7 billion. The company stated that approximately 85% of this revised ARR target is now under contract, providing significant revenue visibility for investors.

The deals also include favorable terms that reduce the company's capital burden. According to the announcement, recent contracts feature customer prepayments that cover approximately 45% of the associated GPU capital expenditure, lowering IREN's net funding requirement for the hardware deployments.

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Expanding Customer Base and Capacity

IREN's customer portfolio now includes major technology firms and AI leaders such as Microsoft, NVIDIA, Perplexity, Figure AI, and an unnamed AI developer. The company noted its customer contracts have a weighted average term of approximately 4 years, securing long-term revenue streams.

Co-Founder and Co-CEO Daniel Roberts said the company has rapidly scaled from approximately 3MW of self-built AI Cloud capacity to 480MW being delivered this year, with a target of 1.2GW for 2027. IREN also reported that as of June 30, 2026, it held approximately $7.6 billion in cash and cash equivalents.