Shares of IREN Limited (IREN) are climbing in Tuesday's premarket session after the company dropped a big update on Monday: it's now expecting its AI Cloud business to generate over $4 billion in annualized run-rate revenue by year-end. That's up from a previous forecast of $3.7 billion, and about 85% of that is already under contract.
The upgraded guidance comes on the heels of $2.8 billion in new multi-year cloud services contracts with some of the biggest names in AI: Microsoft (MSFT), NVIDIA (NVDA), and Perplexity. These deals underscore the red-hot demand for AI cloud infrastructure, and they come with a nice bonus for IREN: customer prepayments covering roughly 45% of GPU capital costs. That could lower the company's funding needs and strengthen its balance sheet.
Technical Picture: Below Key Averages
Despite the good news, the stock is still trading below some important technical levels. It's about 2.6% below its 20-day simple moving average of $43.24, and a more concerning 19.5% below its 50-day SMA of $52.30. The moving average convergence divergence (MACD) is also below its signal line, suggesting that the recent upside momentum is fading unless the stock can reclaim that baseline. Traders will want to keep an eye on whether the stock can break through these levels.
Earnings and Analyst Outlook
IREN is expected to report its next quarterly results on August 27, 2026. Here's what Wall Street is looking for:
- EPS Estimate: Loss of 38 cents (improving from a loss of 66 cents)
- Revenue Estimate: $165.16 million (down from $187.30 million)
- Valuation: P/E of 52.2x — a premium valuation by any measure
Analysts are broadly bullish. The stock carries a Buy consensus with an average price target of $79.11. Recent moves include:
- Macquarie: Outperform, target raised to $90.00 (July 15)
- Freedom Broker: Upgraded to Buy, target $58.00 (July 6)
- Jefferies: Initiated with Buy, target $79.00 (June 18)
Momentum vs. Value: A Mixed Signal
Looking at IREN's market data, the picture is a bit of a split personality. On momentum, the stock scores a bullish 85.12 out of 100, meaning it's outperforming the broader market. But on value, it scores a weak 18.99, reflecting that steep premium valuation. The verdict? IREN has strong momentum but is priced for perfection, which could mean a cautious approach is warranted for investors.
Price Action: IREN shares were up 3.46% at $41.59 in premarket trading on Tuesday.
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