TeraWulf (WULF) Stock Gains After Q1 Earnings Beat Driven by AI Revenue

TLDR

• TeraWulf reported a Q1 loss of $1.01 per share, significantly exceeding the 20-cent loss analysts had anticipated.
• AI lease revenue reached $21 million, surpassing Wall Street’s forecast of $18.6 million.
• Total Q1 revenue stood at $34 million, nearly unchanged compared to the prior year.
• The company has 60 MW of operational HPC capacity leased to Core42 at its Lake Mariner campus.
• WULF stock is up 109% year-to-date and nearly 700% over the past 12 months.

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(SeaPRwire) –   TeraWulf (WULF) shares rose approximately 0.5% in premarket trading on Thursday following the release of first-quarter 2026 results. The stock initially surged as much as 4% before the earnings data were made public.

TeraWulf Inc., WULF

For Q1, the company recorded a net loss of $1.01 per share, a significant increase from the 16-cent loss reported a year earlier and far worse than the 20-cent loss analysts expected.

Total revenue amounted to $34 million, almost flat when compared to $34.4 million in the same quarter last year.

$WULF Earnings are out!

Revenue: $34.0M vs $36.59M est
EPS: -1.01 vs -0.19 est

TeraWulf expects a tenant for their Kentucky data center in Q2 2026 https://t.co/dzAHTYgwld pic.twitter.com/lfdjrewL0c

— Blockspace (@blockspace) May 8, 2026

Despite missing on revenue expectations, investor reaction remained muted, largely due to strong progress in the AI business segment.

High-performance compute lease revenue totaled $21 million during the quarter, beating Wall Street’s estimate of $18.6 million. This figure was zero a year ago.

AI Pivot Takes Shape

TeraWulf is undergoing a strategic shift away from Bitcoin mining toward building AI-focused data center infrastructure. The company is collaborating with Alphabet’s Google and Fluidstack, an AI cloud platform, to develop a major data center campus in upstate New York.

Core42, an AI cloud provider based in the UAE, currently leases 60 megawatts of capacity at the Lake Mariner facility in New York.

The company also secured a $250 million revolving credit facility during the quarter to fund its expansion initiatives.

As of March 31, 2026, TeraWulf held approximately $3.1 billion in cash and restricted cash, providing ample liquidity for continued development.

CFO Patrick Fleury emphasized the focus on contracted revenue. “As we continue to scale, we expect the business to be increasingly driven by recurring, contracted revenue, reducing exposure to the volatility historically associated with bitcoin mining,” he stated.

Growth Pipeline

In addition to Lake Mariner, TeraWulf is advancing multiple other projects. Its Abernathy joint venture aims to deliver 168 MW under a 25-year leasing agreement.

The company also acquired a site in Hawesville, Kentucky during the quarter, expanding its footprint beyond existing facilities in New York and Maryland.

TeraWulf is converting legacy Bitcoin mining infrastructure to support higher-value HPC workloads—a strategy being adopted by several former miners.

IREN stock climbed 9.5% on the same day after announcing an infrastructure partnership with Nvidia, while Cipher Digital, another Fluidstack partner, gained 1.7%.

WULF stock is up 109% so far in 2026 and has surged nearly 700% over the past 12 months, reflecting strong investor interest in the company’s AI compute transformation.

The latest analyst rating for WULF is a Buy with a price target of $32.