Megaport Limited (ASX:MP1) Sets Higher FY27 Ambitions After Major AI Infrastructure Contracts

Aditi Sarkar

11 November 2026 04:33 PM AEDT

Megaport Limited (ASX:MP1) Sets Higher FY27 Ambitions After Major AI Infrastructure Contracts

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Highlights

• Megaport announced three AI infrastructure contracts with a combined stated value of AUD 978.6 million.

• Customer prepayments associated with the agreements totalled approximately AUD 322.6 million in the announcement.

• The group lifted its FY27 Revenue guidance to AUD 720 million–810 million following the three major AI infrastructure agreements.

• Megaport’s FY26 revenue increased 37% to AUD 312.2 million, while group Recurring Revenue also expanded.

AI infrastructure has become a major expansion point for Megaport Limited (ASX:MP1). Three new contracts announced in September have lifted its stated FY27 outlook and brought significant Investment requirements alongside the company’s existing cloud connectivity operations.

Market Setting

Megaport shares were higher on Wednesday 11 November 2026, up about 4.25% to roughly AUD 19.24 around 2:40pm AEDT on Volume of about 590,000 shares. The ASX research data lists a 52-week range of AUD 6.40 to AUD 23.20, and the stock up roughly 14% over the past week. The company lodged no Business announcement on the day: its most recent filings were notices about substantial holders, the latest on 6 November. The rise therefore coincides with a stock that has been in focus since a large run of contract news.

The development driving attention

The most significant recent announcement came on 29 September 2026, when Megaport said it had secured three new AI infrastructure contracts. They span GPU and CPU compute, networking and storage for AI and inference workloads.

The company said the deals take total strategic contract value announced since April 2026 to about AUD 2.3 billion, and lifted group pro forma annual recurring revenue (ARR) to around AUD 1.1 billion once the contracts are deployed. It also raised FY27 guidance, to revenue of AUD 720 million to AUD 810 million (from AUD 620 million to AUD 730 million) and an EBITDA Margin of 42% to 44% (from 38% to 40%). Planned FY27 Capital Expenditure was lifted to AUD 1.78 billion to AUD 1.88 billion.

Megaport expects the contracts to begin billing progressively through FY27, reaching full run-rate ARR by the fourth quarter. Reports differ on the size of the accompanying capital raising, so readers should check the company’s announcement for the exact terms.

What Megaport does

Megaport, based in Fortitude Valley, Queensland, built its business on software-defined networking, letting customers connect to cloud providers and data centres on demand. It has since widened into compute, through the Acquisition of Latitude.sh, and into India through the Extreme IX internet exchange, according to its FY26 result coverage.

Financial Performance

In its FY26 result on 20 August 2026, Megaport reported revenue up 37% to AUD 312.2 million and EBITDA up 24% to AUD 77.1 million. It posted a net loss of AUD 39.0 million, compared with a loss of AUD 0.3 million a year earlier, and declared no dividend. Group ARR rose 62% to AUD 395.2 million, and year-end cash was AUD 435.4 million.

At 29 September, the company said network ARR was AUD 302.6 million, up 29% year on year in constant currency, and compute ARR was AUD 201.4 million. It reported pro forma Liquidity of about AUD 362.2 million.

puts the company’s Market Value at around AUD 4.6 billion, and the shares are up about 64% in 2026 to date.

Key Operating Considerations

The investment required is large. Planned FY27 capital expenditure of up to AUD 1.88 billion is a multiple of the company’s FY26 revenue, so delivery on schedule matters, as does the customers’ ability to keep honouring multi-year commitments. Concentration is another consideration: the contracts cover a small number of large AI customers. The AI infrastructure market is also competitive and subject to swings in Demand and in the availability and pricing of GPUs. Megaport remains loss-making at the net level, and a sharp share price rise leaves little room for disappointment on execution.

Next Business Milestones

Megaport has said it expects the new contracts to start billing progressively through FY27, and that it will bring its on-demand GPU pool to market. an Annual General Meeting notice lodged on 19 October. No date for the next Earnings release has been confirmed in the information available, though half-year results are normally reported in February.

FAQs

Q: What was the combined value of the new AI contracts?

A: AUD 978.6 million.

Q: What is Megaport’s revised FY27 revenue guidance?

A: AUD 720 million to AUD 810 million.

Q: How much was FY26 revenue?

A: AUD 312.2 million.

Q: When does the company expect new contract billing?

A: Progressively through FY27.

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