Iren NASDAQ:IREN shares surged about 15% on Monday after the AI cloud infrastructure provider signed $2.8 billion in new cloud services contracts and raised its 2026 annualized AI Cloud revenue target to more than $4 billion.
Iren said it now expects year-end 2026 annualized AI Cloud revenue to exceed $4 billion, up from its previous target of $3.7 billion. The company added that about 85% of the revised target is already backed by signed multi-year agreements with AI developers representing roughly $2.8 billion in total contract value.
Iren said its customer base includes Microsoft NASDAQ:MSFT, Nvidia NASDAQ:NVDA, Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, Fal AI, Hume AI and another unnamed AI developer. The company added that demand from hyperscalers, enterprises and frontier AI labs continues to outpace both its available and planned computing capacity as it advances its 2026 and 2027 expansion plans.
Iren also said recent customer agreements include prepayments covering about 45% of the associated GPU infrastructure spending, reducing its funding needs for those deployments. The company expects AI cloud capacity to expand from about three megawatts a year ago to 480 megawatts this year, with a target of 1.2 gigawatts by 2027. As of June 30, Iren reported about $7.6 billion in cash and cash equivalents.