IREN Limited (IREN) shares climbed as high as 21% on Monday afternoon after the AI cloud firm lifted its 2026 target for its annualized run-rate revenue (ARR) to over $4 billion. Reacting, Goldman Sachs (GS) refused to move its Hold rating on IREN, citing expected expenses in fiscal 2027.
Goldman Shares View of IREN’s New Revenue Target
On Monday, IREN announced that it now expects to achieve over $4 billion in ARR, up from its earlier $3.7 billion target. The Sydney-based company said it has secured new multi-year deals with several AI developers, including Perplexity and Figure AI.
In addition, IREN pointed out that 85% of its ARR target is already tied to signed contracts. It added that it now has about $2.8 billion in total contract value.
Goldman Sachs analyst Michael Ng is generally bullish on the move. He noted that it shows that AI computing supply remains tight and gives companies more pricing power.
What’s more, Ng said the announcement shows IREN is diversifying its customer base. He believes that the update will be well received by investors.
Why Goldman Sachs Remains Cautious of IREN Stock
Despite the bullish comments, Ng chose to maintain his Hold rating on IREN stock. He set a price target of $50, predicting about 49% upside.
Ng noted he and his team updated their earnings estimate for IREN. He noted that the estimate considers that IREN’s mining costs are falling. This is because the AI cloud firm is winding down operations through the end of this year.
Nonetheless, Ng sees these savings largely canceled out in fiscal 2027. This is due to IREN’s “recently announced marketing campaigns.” Notably, IREN recently acquired a Spanish data center operator. It also recently took over Mirantis, a private cloud infrastructure company, in a $625 million deal.
Is IREN Stock a Good Buy?
On Wall Street, IREN’s shares remain a Moderate Buy based on analysts’ consensus rating. This breaks down into eight Buys, two Holds, and one Sell rating issued over the past three months.
However, the average IREN price target of $77.20 suggests about 89% upside in the months ahead (see IREN stock forecast here).
