IREN rose about 9 percent today, snapping a brief losing streak and leaving it just a few dollars below its recent high. We think this is mostly about the company securing billions in new contracts to build the specialized data centers needed for AI.
Our view
IREN has secured the power and land that the biggest tech companies need to run AI, which puts it in a very strong position. If you have been thinking about buying it, the current price is a reasonable one to pay for a company with this much contracted revenue.
Acquisition of Mirantis to bolster AI cloud software
The company has finished buying Mirantis, a move aimed at improving the software layer of its data centers. While the company is known for its physical power and land, it also needs the software tools to manage how AI chips work together for its customers.
This deal helps the company offer a more complete service to AI developers. By owning the software that runs its cloud platform, it can better control how its systems perform and potentially keep more of the profit from each contract.
H.C. Wainwright set a price target of $90 for the stock. This is a significant vote of confidence, as it suggests the stock could more than double from its current level of about $39.
The firm kept its buy rating, likely focusing on the company's ability to turn its massive power access into steady revenue from AI customers. While analyst targets are just estimates, this high figure highlights the gap between the company's current market value and its potential if it finishes building its planned data centers.
New $2.8 billion in contracts lifts revenue target
The company signed $2.8 billion in new contracts with AI developers, a major step in proving it can turn its data center space into actual cash. Because of these deals, it raised its 2026 target for annual recurring revenue, which is the steady income it expects to collect each year, from $3.7 billion to over $4 billion.
About 85 percent of that goal is now backed by signed contracts. This is a critical milestone because it reduces the risk that the company will build expensive data centers and have no one to use them. It shows that the largest AI companies are willing to commit billions to secure the power and space the company owns.
Eric Hammersley has joined as the new Chief Information Security Officer. This follows other recent hires for the product and development teams as the company grows its AI cloud business. While these are routine hires, they show the company is maturing from a smaller mining operation into a professional infrastructure provider. Having dedicated leaders for security and product development is necessary as it begins to handle sensitive data for large corporate AI clients.
Freedom Broker upgraded the stock to a buy rating. This change suggests the firm sees a better path for the company to succeed in its pivot toward AI data centers.
Upgrades like this often happen when analysts gain more confidence that a company can fund its growth without running out of cash. For this company, the main challenge is spending billions on construction before the new revenue starts flowing in, and this upgrade indicates the firm believes that risk is manageable.
Iris Energy analyst price targets
Analysts have consistently maintained their positive ratings throughout the summer despite recent stock price volatility. Most analysts, 10 out of 14, rate the stock a buy, and the average price target suggests a potential 102% gain from today.
Average target$83.29+102%vs $41.23 today
TodayAvg price
Low $50High $99
Strong Buy14 analysts
1Bearish
3Neutral
10Bullish
FirmRatingPrice TargetDate
H.C. Wainwright
—
$90
7/22/2026
Jefferies
—
$79
6/18/2026
Bernstein
—
$96
6/4/2026
Macquarie
Outperform
$90
6/3/2026
Canaccord Genuity
Buy
$79
6/3/2026
Cantor Fitzgerald
Overweight
$77→$99
5/28/2026
Goldman Sachs
—
$50
5/27/2026
Goldman Sachs
—
$39→$44
5/8/2026
Cantor Fitzgerald
Overweight
$82→$61
4/9/2026
Macquarie
Outperform
$95→$70
2/6/2026
Cantor Fitzgerald
Overweight
$136→$82
2/6/2026
H.C. Wainwright
Buy
$80
1/13/2026
Iris Energy earnings
The company has a history of reporting larger losses than analysts expect. This suggests the business is spending heavily on growth and is currently difficult for Wall Street to forecast accurately.
Earnings history
EstimateBeatMiss
Iris Energy past earnings results
Expected
Actual
Surprise
EPS
$-0.22
$-0.74
-238.8%
Revenue
$220M
$145M
-34.1%
Key highlights
Revenue mix shifting: Total revenue fell to $144.8 million from $184.7 million the previous quarter, as the company intentionally shut down older Bitcoin mining hardware to make room for more profitable AI cloud chips.
Massive AI cloud contract: IREN signed a new 5-year, $3.4 billion contract with NVIDIA for Blackwell chips, which are high-performance processors used for training AI models. This adds to an existing $9.7 billion contract with Microsoft as the company pivots away from digital currency mining.
Annual recurring revenue target: The company has $3.1 billion in annual recurring revenue under contract and is on track to reach its goal of $3.7 billion by the end of 2026. This target relies on deploying roughly 74,000 chips across sites in Canada and Texas.
Significant non-cash losses: The company reported a net loss of $247.8 million, which was worsened by $140.4 million in charges for decommissioning its older Bitcoin mining equipment. This highlights the high cost of switching the business focus entirely to AI infrastructure.
Power capacity growth: IREN secured a 5-gigawatt global partnership with NVIDIA to support its data center pipeline through 2028 and beyond. This power capacity is the critical raw material for running large scale AI clusters and now includes new sites in Spain and Australia.
Future capacity goals: Management expects to expand its data center capacity to 1,210 megawatts during 2027, more than doubling the 480 megawatts planned for the end of 2026. This growth will be funded by $2.6 billion in cash and new financing initiatives for its chip clusters.
Our take: A messy quarter that looks worse than it is due to the costs of a massive pivot. While the revenue miss and equipment write-downs hurt, the $3.4 billion NVIDIA contract and the path to $3.7 billion in recurring revenue by year-end prove the transition to an AI-first company is working. It strengthens the case for IREN as a major AI infrastructure player.
Iris Energy’s next earnings date
Q4 2026
AUG
27
Expectation
EPS
$-0.53
Revenue
$136M
Metrics we are tracking
Metric
Expectations
Status
ARR Growth
Reaching $3.7 billion in annual recurring revenue by end of 2026
$3.1B under contract as of May 2026
GPU Deployment
Reaching 150,000 operational GPUs by the end of calendar 2026
74k GPUs planned for 2026 target in Q3 2026
Power Capacity
Scaling secured power toward the 5 gigawatt global portfolio target
5GW secured power portfolio as of Q3 FY2026
Free Cash Flow
Moving toward a self-funding model as AI revenue ramps up
