Key Highlights:

  • Net Revenue rose 16% to AUD 405mn.
  • Underlying EBITDA increased 15% to AUD 248.8mn.
  • Contracted utilisation surged to 740.1MW.
  • Hyperscale and AI workloads account for around 95% of contracted megawatts.

NEXTDC has become the ASX's purest listed play on the artificial-intelligence infrastructure boom, building and operating the data centres that house the computing power behind AI and cloud workloads. Its results for the year to 30 June 2026 put that thesis firmly at centre stage: record revenue, a return to statutory profit, and a contracted order book that ballooned as hyperscalers locked in capacity. Chief executive Craig Scroggie framed the year ahead as 'a record growth year' — but with an enormous Capital programme now committed, the market is weighing breakneck growth against an equally striking valuation.

Latest Developments

NEXTDC reported net revenue of AUD 405 mn, up 16 %, and underlying EBITDA of AUD 248.8 mn, up 15 % and ahead of its guidance range. The group swung to a statutory net profit of AUD 82.1 mn, from a AUD 60.5 mn loss the prior year, aided by a fair-value gain on its Investment properties.

The operational metrics were the headline. Contracted utilisation surged to 740.1MW, more than tripling on a pro forma basis, while the forward order book reached 565.1MW of binding, fully contracted Demand to be converted progressively over coming years. Management noted that hyperscale and AI workloads now account for around 95 % of contracted megawatts.

FY2026 Numbers at a Glance

The gap between contracted capacity and reported Earnings is the crux of the NEXTDC story. The company is booking demand years in advance, but that capacity converts to revenue only as facilities are built and energised, so today's profit understates the scale of what has been committed.

That timing dynamic helps explain why the shares have at times fallen even on strong operational news: when the company held near-term guidance steady despite an expanding order book, some investors read it as growth deferred rather than delivered. The order book points to substantial revenue in FY2027 and FY2028 as contracted megawatts come online.

What Could Drive NEXTDC Limited Next?

For FY2027, NEXTDC guided to net revenue of AUD 615 to AUD 640 mn, implying 52 to 58 % growth, and underlying EBITDA of AUD 385 to AUD 410 mn, up 55 to 65 % — a dramatic acceleration as new capacity is commissioned.

Continued hyperscaler and AI contract wins, timely delivery of new capacity, and evidence that the group can hit its targeted development yields would all support the growth case. The scale of demand for AI-ready, liquid-cooled facilities remains the central tailwind.

Key Risks to Watch

The defining risk is the balance sheet. NEXTDC flagged Capital Expenditure of roughly AUD 5.3 to AUD 5.8 bn, an immense sum that will require ongoing funding and heightens sensitivity to interest rates, construction timelines and any future Equity raisings that could dilute holders.

Execution is unforgiving at this scale — power availability, cooling technology and build schedules all have to align. And the valuation leaves little Margin for error: the stock trades on expectations of years of rapid growth, so any delay in converting the order book, or a cooling in AI demand, could weigh heavily.

Investor Takeaway

NEXTDC's FY2026 result validated the AI-infrastructure thesis, with a record year operationally and an order book that underwrites a steep earnings ramp ahead. The tension is between that visible growth and the capital intensity and premium valuation required to fund it. Whether the shares reward holders from here depends on flawless execution of one of the largest build-outs on the ASX — and on AI demand staying as strong as the contracts imply.