IREN Raises AI Cloud Revenue Target as Contracts Expand
The company signed $2.8 billion of new multi-year cloud-services contracts with AI developers.
IREN (IREN), the AI cloud provider, raised its year-end 2026 annual recurring revenue target to more than $4 billion as it added customers and expanded contracted capacity.
The increase extended a series of upward revisions, from $3.4 billion in November 2025 to more than $3.7 billion in March. About 85% of the latest target was under contract, while IREN had described the March target as not fully contracted.
The update shifted the focus from quarterly earnings to the scale and funding of IREN’s AI expansion. The company omitted the revenue, net income, EBITDA and adjusted EBITDA figures included in its November results release, centering instead on contracted revenue, capacity and financing.
IREN added another leading AI developer to a customer roster that included Microsoft, NVIDIA, Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, Fal AI and Hume AI. Its contracts had a weighted-average term of about four years, compared with the five-year average term previously highlighted for Microsoft.
AI Cloud capacity grew from about 3 megawatts to 480 megawatts being delivered in 2026 over the past 12 months. IREN now targets 1.2 gigawatts of capacity in 2027 and contracted pricing continues to strengthen as demand exceeds available and planned capacity.
Contracts executed since June 1 included customer prepayments equal to about 45% of the associated GPU capital expenditure. The structure reduced the company’s net funding requirement for those deployments.
Cash and cash equivalents reached about $7.6 billion at June 30, up $5.8 billion from October, though the latest balance included $1.7 billion of restricted cash tied to financing GPUs for the Microsoft contract. Customer prepayments and the larger cash position gave IREN additional funding for its capacity buildout as it pursued the higher 2026 target.