Key Highlights

• Megaport secured three new AI infrastructure contracts with a combined total contract value of approximately A$978.6 million, lifting cumulative strategic contracts since April 2026 to approximately $2.3 billion.

• The company upgraded FY27 Revenue guidance to $720 million–$810 million, with EBITDA margins expected at 42%–44%.

• Group pro forma ARR reached approximately A$1.1 billion, with over 85% of ARR generated from North America.

Megaport Ltd(ASX:MP1), the global automated infrastructure platform provider, saw its shares trading at AU$17.72 during the Trading session on 05 November 2026, up 7.59%. The S&P/ASX 200 index (XJO) gained 2.61%, adding 230.60 points to reach 9,065.10, while the S&P/ASX 200 Information Technology index (XIJ) surged 10.09%, climbing 164.80 points to 1,797.60. The technology sector rally was supported by overnight Wall Street gains after the Democrats posted a decisive victory in the U.S. midterm elections, providing a tailwind for global Equity markets.

New AI Infrastructure Contracts

On 29 September 2026, Megaport announced it had secured three further infrastructure contracts through its wholly owned subsidiary, Latitude.sh. The three agreements, two of which are with new customers, carry a combined total contract value (TCV) of approximately US$685.0 million (A$978.6 million) and encompass GPU and CPU compute, network, and storage for AI applications and inference workloads. These contracts are expected to contribute approximately US$162.7 million (A$232.4 million) in annualised Recurring Revenue (ARR).

The new agreements lift the combined total contract value of strategic contracts announced since April 2026 to approximately $2.3 billion. One new customer is making a prepayment of approximately A$281.5 million prior to delivery of the service to gain rapid access to GPUs already ordered for the company's GPU pool. Megaport CEO Michael Reid noted that the company is broadening its customer base, replenishing its GPU pool, and expanding its AI inference platform.

Upgraded FY27 Guidance and Trading Update

Alongside the contract announcement, Megaport upgraded its FY27 guidance. Group revenue is now expected at $720 million–$810 million, up from the previous range of $620 million–$730 million. The EBITDA Margin target was increased to 42%–44% from the prior 38%–40%. Capital Expenditure is forecast at $1.78 billion–$1.88 billion, up from $1.28 billion–$1.38 billion, reflecting the new contracts.

Megaport's Group ARR is currently billing over $500 million. Network net revenue retention stood at 116% as of August 2026, up 6 percentage points versus the prior comparable period. Network ARR reached A$302.6 million in August 2026, up 29% on a constant currency basis. Compute ARR stood at $201.4 million as at 22 September 2026, up 90% since 30 June 2026.

Funding and Liquidity

The company executed documentation for an upsized Debt Facility with total capacity of A$845 million, provided by a syndicate of leading domestic and international banks. Megaport stated it is fully funded for all capital expenditure in the updated FY27 guidance, including both the strategic contracts and the replenishment of the GPU pool, with approximately A$362.2 million of Liquidity on a pro forma basis. Once all strategic contracts have begun billing, the company expects an annualised EBITDA run rate of over A$650 million.

About the Company

Megaport is a global automated infrastructure platform headquartered in Brisbane, Australia. The company provides network-as-a-service, cloud connectivity, and through its Latitude.sh subsidiary, GPU compute infrastructure for AI workloads. Megaport connects enterprises to cloud providers, data centres, and AI infrastructure across multiple regions, with a growing focus on North American markets.

Sector Context

The ASX technology sector posted substantial gains on 05 November 2026, with the XIJ index advancing 10.09%. The broader S&P/ASX 200 gained 2.61%. Global sentiment was lifted by the U.S. midterm election outcome, driving renewed interest in growth-oriented technology stocks across the Australian market.

Risks

Key risks include the concentration of revenue from a limited number of large strategic contracts, with customer identities not publicly disclosed. The capital-intensive nature of GPU procurement and data centre expansion could strain liquidity if deployment timelines extend or customer Demand shifts. Additionally, demand from AI workloads remains subject to the pace of enterprise AI adoption, and the weighted average contract term of just over four years introduces renewal risk.

Catalysts on Watch

The deployment timeline for the new contracts through Q3 and Q4 FY27 will be a key indicator of execution. The replenishment of the GPU pool, requiring an estimated A$360 million in capital expenditure, is expected to be deployed by Q4 FY27 with revenue ramp in H1 FY28. Continued growth in Network ARR and the Diversification of the customer base beyond initial strategic logos are additional catalysts.

Looking Ahead

Megaport's latest contract announcements and guidance upgrade reflect the company's expanding role in AI infrastructure. With approximately $2.3 billion in cumulative strategic contract value and a pro forma Group ARR approaching $1.1 billion, execution on deployment timelines and capital management will be central to delivering on the upgraded outlook.