IREN Limited (IREN) shares shot up as much as 15% on Monday after the company announced a big jump in its annualized revenue forecast. The reason? New multi-year cloud services contracts worth $2.8 billion with some of the biggest names in AI, including Microsoft (Microsoft), NVIDIA, and Perplexity.

IREN now expects its AI Cloud annualized run-rate revenue to hit over $4 billion by year-end, up from a previous target of $3.7 billion. And here's the kicker: about 85% of that is already under contract. Demand, the company says, continues to outpace available and planned capacity, and IREN is already working on its 2026 and 2027 expansion pipeline.

The new contracts come with customer prepayments that cover roughly 45% of GPU capital costs, which lowers IREN's funding needs. The contracts also have a weighted average term of about four years, giving the company a nice, predictable revenue stream. This is a clear sign that hyperscalers and enterprises are hungry for AI cloud infrastructure, and IREN is positioning itself as a key player.

As of June 30, 2026, IREN had about $7.6 billion in cash and cash equivalents, so it's not exactly strapped for cash. But the prepayments help, too.

Technical Outlook: Momentum vs. Moving Averages

Despite the Monday surge, IREN's stock at $36.68 is still well below its 20-day simple moving average of $44.22 — that's a 16.9% gap. The MACD is also below its signal line, which suggests that upside momentum might be fading unless the stock can reclaim that moving average. For traders, that could be a key level to watch.

Earnings Preview: What to Expect

IREN is expected to report its next financial update on August 27, 2026. Analysts are estimating a loss of 38 cents per share (improving from a loss of 66 cents) and revenue of $165.16 million (down from $187.30 million).

The stock carries a Buy rating with an average price target of $79.11. Recent analyst moves include:

• Macquarie: Outperform, target maintained at $90.00 (July 15)
• Freedom Broker: Upgraded to Buy, target $58.00 (July 6)
• Jefferies: Initiated with Buy, target $79.00 (June 18)

Value and Momentum: A Mixed Picture

On the MarketDash Edge scorecard, IREN shows a mixed profile. Its Value score is weak at 29.94, meaning the stock trades at a steep premium compared to peers. Momentum is neutral at 46.79, indicating moderate performance. So while the revenue news is exciting, the valuation might give some investors pause.

Price Action: IREN shares were up 14.25% at $38.40 at the time of publication on Monday.