IREN Ltd (NASDAQ: IREN) shares surged 5.30% in pre-market trading on Friday, following the release of its exceptional first-quarter fiscal year 2026 financial results. The company, which has successfully pivoted from Bitcoin mining to AI cloud infrastructure, reported earnings that significantly surpassed analyst expectations.

For the quarter ended September 30, IREN reported a net income of $384.6 million, a remarkable turnaround from a $51.7 million loss in the same period last year. Revenue skyrocketed by 355% year-over-year to $240.3 million, beating the analyst consensus of $235.5 million. The company's earnings per share of $1.08 crushed estimates of $0.14, representing a staggering 682.61% beat.

IREN's success story is twofold. While its Bitcoin mining operations contributed significantly to the quarter's revenue, the company's strategic shift towards AI cloud services is gaining substantial traction. A recent $9.7 billion contract with Microsoft for GPU services at its Childress, Texas facility underscores this pivot. IREN has set ambitious targets, aiming to achieve $3.4 billion in AI Cloud Annual Recurring Revenue (ARR) by the end of 2026, with $1.9 billion expected from the Microsoft contract alone. The company's strong financial performance, coupled with its expanding presence in the rapidly growing AI infrastructure sector, has clearly resonated with investors, driving the pre-market surge.