Highlights

  • FY26 group Revenue rose 37% to $312.2 million, with network revenue of $268.3 million and compute revenue of $43.9 million.
  • Network services reached 40,735 at 30 June 2026, while customer logos increased to 3,206.
  • FY27 guidance targets group revenue of $620 million to $730 million and compute revenue of $305 million to $405 million.
  • Planned FY27 Capital Expenditure of $1.28 billion to $1.38 billion reflects the scale of the GPU infrastructure build.
  • Execution, hardware timing, customer concentration and rising Debt are the main factors to monitor as the Business expands.

Megaport Ltd (ASX:MP1) is a cloud networking platform connecting customers across data centres, public clouds and digital infrastructure. In 2026, it broadened its model beyond connectivity by adding GPU-based computing and other infrastructure services. The shift increases capital requirements and makes FY27 increasingly dependent on deployment execution as well as demand.

FY26 Revenue Growth Across Network and Compute

FY26 group revenue was $312.2 million, up 37%. Network revenue contributed $268.3 million and compute revenue contributed $43.9 million. Gross Profit was $229.0 million, representing a 73% margin. EBITDA increased to $77.1 million from $62.3 million, although the EBITDA Margin eased to 25% from 27% as the lower-margin compute business became a larger part of the group. Operating Cash Flow rose to $82.1 million from $68.2 million.

Recurring Network Base Continues to Expand

The core network business remained the larger Earnings base. At 30 June 2026, Megaport reported 40,735 services, up 20%, and 3,206 customer logos, up 12%. Customers generating at least $100,000 a year in annualised revenue increased to 725, up 15%. Network annualised Recurring Revenue reached $289.6 million, while compute annualised recurring revenue was $105.6 million, bringing the combined figure to about $395.2 million.

AI Compute Contracts Drive the FY27 Build

The company reported strategic contracts with total contract value of US$1.3 billion, including about $435 million of annualised revenue and around $826 million of associated capital expenditure. Management targets GPU pool payback periods of 16 to 22 months. The contracts support expansion, but returns remain sensitive to deployment timing, hardware Supply and customer performance.

FY27 Guidance Requires Significant Funding

For FY27, Megaport guided to group revenue of $620 million to $730 million, including network revenue of $315 million to $325 million and compute revenue of $305 million to $405 million. EBITDA margin guidance is 38% to 40%, while capital expenditure is expected at $1.28 billion to $1.38 billion. The wide compute range reflects the importance of hardware delivery and commissioning schedules.

Funding has been raised through Equity and debt. The company reported capital raises of $218.2 million and $827.3 million, followed by a $308.5 million retail entitlement offer completed in July 2026. It also secured an $825 million debt facility. Cash at 30 June 2026 was $435.4 million and net cash was $406.9 million, but that position is expected to reduce as spending proceeds.

Key Risks and Watch Points

The main risks are operational execution, GPU supply constraints, foreign-exchange movements, customer concentration in AI workloads and competition from cloud and data-centre providers. Higher borrowing also adds financing exposure as the Investment programme expands. Contracted revenue provides visibility, but it does not remove delivery risk if equipment arrives late, customer ramps take longer than expected or deployment costs exceed assumptions.

Key Insights

Megaport entered FY27 with a larger recurring revenue base and a broader product set. The key test is whether capital deployment converts into revenue within the planned timeframe while margins improve toward guidance. FY27 therefore depends on disciplined delivery of the AI compute programme alongside continued network growth.