IREN has lifted its year-end AI cloud revenue target to more than $4 billion, the company said Wednesday, after signing $2.8 billion in new contracts with AI developers. The announcement pushed the company's stock up 16% in after-hours trading.
The new contracts
The $2.8 billion in fresh agreements bring IREN's total contracted AI cloud revenue to a level that now supports the higher target. The company did not disclose the names of the AI developers it signed with, but described them as "leading AI developers" — a group that typically includes firms building large language models and other generative AI products. The contracts cover multi-year commitments for cloud computing capacity, including GPUs and related infrastructure.
Why the target was raised
IREN originally set its AI cloud revenue target at $1.5 billion for the year. The new $4 billion-plus goal reflects the rapid pace of deal-making in the AI infrastructure space, where demand for computing power continues to outstrip supply. The company said the additional contracts were signed over the past several months, and that it expects to begin recognizing revenue from them in the current quarter.
Market reaction
Investors cheered the news. IREN's stock, which trades on the Nasdaq under the ticker IREN, jumped 16% in extended trading Wednesday. The rally adds to a strong year for the stock, which has more than doubled since January as AI companies race to secure cloud capacity for training and inference workloads.
IREN now faces the challenge of delivering on the expanded backlog. The company said it is accelerating its data center buildout and expects to have the necessary capacity online by the end of the fiscal year. Analysts will be watching the next quarterly report for signs of execution risk — and for any further contract announcements that could push the target even higher.
