Key highlights

  • Megaport secured three AI infrastructure contracts with a combined total contract value of about $978.6 million and prepayments of about $322.6 million.
  • FY27 Revenue guidance rose to $720–810 million and EBITDA Margin guidance to 42–44%, while capex guidance rose to $1.78–1.88 billion.
  • Network ARR reached A$302.6 million, and Compute ARR was $201.4 million as at 22 September 2026.

Megaport Ltd (ASX:MP1) shares were up 6.17% at $16.36 during the Trading session on 21 October 2026. The S&P/ASX 200 Info Tech [XIJ] index stood at 1,614.00, down 3.38% (56.50 points), while the S&P/ASX 200 [XJO] was at 8,811.10, down 0.066% (5.80 points), as at 3:12 pm GMT+11. Overseas on Tuesday, the Dow Jones Industrial Average gained 1.02% to 52,495.88 and the S&P 500 rose 0.28% to 7,712.57, while the Nasdaq Composite slipped about 0.02% to 26,424.82, with several large technology shares lower as investors reassessed valuations and upcoming earnings. Megaport is an Australian-listed provider of an automated global network infrastructure platform that has expanded into compute through its Latitude.sh subsidiary.

What Megaport does

Megaport Limited operates a global automated infrastructure platform that lets customers connect networks and cloud services on demand. Through its wholly owned Subsidiary Latitude.sh, it also provides compute, including GPU and CPU infrastructure for AI workloads. The company reports Network and Compute segments, and the release states that more than 85% of its pro forma ARR comes from North America.

New AI infrastructure contracts

In an announcement dated 29 September 2026, Megaport said Latitude.sh secured three further infrastructure contracts, two with new customers, with a combined total contract value of about US$685.0 million (A$978.6 million). They cover GPU and CPU compute, network and storage for AI applications and inference workloads, and are expected to contribute about US$162.7 million (A$232.4 million) in ARR.

Prepayments from the contracts total about A$322.6 million, including a prepayment of about A$281.5 million from one new customer ahead of service delivery. Megaport said it has secured power and space for the new contracts and that, since April 2026, announced strategic contracts total about A$2.3 billion in value.

GPU pool and funding

Megaport allocated GPUs already ordered for its GPU pool to the new contracts and has begun procuring equipment to replenish the pool, which is estimated to require US$252.0 million (A$360.0 million) of Capital Expenditure during FY27. It said it is fully funded for the contracts and the pool, with pro forma Liquidity of about A$362.2 million.

Trading update

Megaport reported that Group ARR is currently billing over A$500 million, and pro forma Group ARR is about A$1.1 billion with the new contracts. Network ARR in August 2026 was A$302.6 million, up 29% in constant currency, with network net revenue retention of 116%, up six percentage points. Compute ARR was A$201.4 million at 22 September 2026, up 90% since 30 June 2026 and 227% since acquisition.

Upgraded FY27 guidance

FY27 revenue guidance rose to $720–810 million from $620–730 million, and EBITDA margin guidance rose to 42–44% from 38–40%. Capital expenditure guidance increased to $1.78–1.88 billion from $1.28–1.38 billion to reflect the new contracts.

Sector context

Technology shares are being assessed against Earnings and valuations. During the session, the S&P/ASX 200 Info Tech index was at 1,614.00, down 3.38%, and the broader S&P/ASX 200 was at 8,811.10. In the United States, the Nasdaq is described as sensitive to corporate earnings and forward guidance and to artificial intelligence infrastructure spending. AI infrastructure spending is one of the topics the Nasdaq is sensitive to, and Megaport’s update links its contracts and guidance to GPU compute demand.

Risks and uncertainties

Capital expenditure guidance rose by about $500 million, and delivery depends on procurement, power and space, and customer acceptance of deployed clusters. Contract value is not the same as revenue, with recognition spread over contract terms. Concentration among a small number of large customers, GPU Supply and pricing, replenishment of the GPU pool, currency movements and the pace of AI Demand can affect results.

Catalysts to watch

Items to watch include delivery and billing of the new contracts, the GPU pool replenishment, Compute and Network ARR in later updates, the company’s next Quarterly Report and progress against the upgraded FY27 guidance.

Wrapping up

Megaport’s 29 September 2026 announcement combined new contracts, prepayments and a larger capital program with higher guidance for revenue and margin. Later reports will track delivery and cash flow.