Key highlights

  • Megaport Ltd (ASX:MP1) closed at $15.41 on 20 October 2026, down 3.26%.
  • The shares are up approximately 10.18% over the past year.
  • Megaport said on 29 September 2026 that it had secured three AI infrastructure contracts worth about $978.6 million and upgraded FY27 guidance.

Shares in Megaport Ltd (ASX:MP1) closed at $15.41 on 20 October 2026, fell 3.26% on the day from a previous close of about $15.9293.

Over the past 12 months the stock gained approximately 10.18%. Working back from the closing price, a 12-month change of approximately +10.18% implies a share price of about $13.99 a year earlier. The annual gain is much larger than the move in a single session, which is a reminder of how far a stock can travel over a year.

In dollar terms, the 12-month move amounts to about $1.42 per share, from roughly $13.99 to $15.41, while the move during the 20 October session was about 51.9 cents per share. The two figures measure different time frames and are reported here on their own terms.

About Megaport

Megaport Limited is a Brisbane-based global automated infrastructure platform. It provides network services and, through its Wholly Owned Subsidiary Latitude.sh, compute infrastructure including GPU capacity. More than 85% of its pro forma annual Recurring Revenue comes from North America.

Latest development

The share price information above stands apart from the company’s announcement. On 29 September 2026 Megaport announced three new AI infrastructure contracts through Latitude.sh, covering GPU and CPU compute, network and storage for AI applications and inference workloads. Combined total contract value is about $978.6 million (US$685.0 million), including prepayments of about $322.6 million, and the contracts are expected to add about $232.4 million of annual recurring revenue. Two of the three contracts are with new customers.

One new customer is prepaying about $281.5 million before service delivery, covering most of the cash Capital Expenditure for its contract. Megaport allocated GPUs already ordered for its GPU pool to the contracts and has started buying equipment to replenish the pool, at an estimated $360.0 million in FY27 capital expenditure. Combined strategic contracts announced since April 2026 now total about $2.3 billion, and pro forma group ARR is about $1.1 billion, with pro forma Liquidity of about $362.2 million.

Megaport also gave a trading update: group ARR is billing over $500 million, network net revenue retention was 116% in August 2026, network ARR was $302.6 million, up 29% in constant currency, and compute ARR was $201.4 million, up 90% since 30 June. FY27 guidance was upgraded to revenue of $720 million to $810 million (previously $620 million to $730 million), an EBITDA Margin of 42% to 44% (previously 38% to 40%) and capital expenditure of $1.78 billion to $1.88 billion (previously $1.28 billion to $1.38 billion).

Sector context

Demand for GPU and compute capacity for AI workloads has led infrastructure providers to sign large multi-year contracts with prepayments, which can fund the equipment needed to deliver them. Network services that connect data centres and clouds also benefit from increased data traffic.

Delivering that capacity depends on securing power, space and equipment, which Megaport said it has done for these contracts.

Risks

Capital expenditure guidance rose by $500 million, so delivery of equipment and customer acceptance matter to returns. Customer concentration remains a consideration even though two of the new contracts are with new customers.

More than 85% of ARR is from North America, which concentrates regional exposure. The company’s share price fell 3.26% on 20 October 2026.

Share price movements add a separate layer of uncertainty. The stock’s one-day move of -3.26% on 20 October 2026 and its 12-month change of approximately +10.18% show how far the share price can move, and past movements do not indicate future direction.

Catalysts to watch

Items to watch include provisioning and billing of the new GPU clusters, the replenishment of the GPU pool, further contracts, network ARR and net revenue retention, and delivery against the upgraded FY27 guidance.