Megaport stock gets AUD 978.6 million AI contract boost

Published on 10/07/2026 at 06:28 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Megaport stock now carries three AI contracts worth AUD 978.6 million, Reuters reported on September 29, 2026. FY27 revenue guidance rose to AUD 720 million to AUD 810 million.

Megaport, AU000000MP15, Illustration mit AI erstellt.

Megaport (AU000000MP15) was trading at AUD 21.09 on the ASX on October 7, 2026 at 2:04 p.m. AEST, with a market capitalization of AUD 5.0 billion. The company added three AI infrastructure contracts worth AUD 978.6 million and raised its FY27 outlook, according to Reuters on September 29, 2026.

AI contracts reset the outlook

The agreements are expected to add AUD 232.4 million in annual recurring revenue once fully deployed. Reuters reported that the contracts lifted pro forma group ARR to AUD 1.1 billion and took the value of strategic AI infrastructure contracts announced since April to AUD 2.3 billion.

FY27 group revenue guidance increased to AUD 720 million to AUD 810 million from AUD 620 million to AUD 730 million. EBITDA margin guidance also rose to 42% to 44% from 38% to 40%, while planned FY27 capital expenditure increased to AUD 1.78 billion to AUD 1.88 billion.

Execution now matters more

The higher guidance comes with a larger investment requirement. The contracts are expected to begin contributing revenue as hardware becomes operational through FY27, with full run-rate ARR scheduled for the fourth quarter of FY27, according to SureStone Capital on September 29, 2026.

Reuters quoted MPC Markets founder Mark Gardner describing execution as the test, because contracted value must become revenue while Megaport earns an adequate return on a larger capital base. That distinction is central for investors: AUD 978.6 million of contract value is not AUD 978.6 million of current revenue.

Analysts see further upside

The consensus rating is Buy, based on 16 analysts, with 14 Buy ratings, 2 Holds and 0 Sells. The average 12-month price target is AUD 25.40, with a high of AUD 33.52 and a low of AUD 17.00, according to Investing.com. The average target lies 20.4 percent above the October 7 price.

Megaport's operating base also expanded in FY26. Its investor-relations page lists AUD 395.2 million of ARR, more than 37,000 services, more than 1,200 enabled data centers and more than 4,000 customers as of June 30, 2026, according to Megaport.

Megaport stock stays below its yearly high

Megaport stock was trading at AUD 21.09 on the ASX on October 7, 2026 at 2:04 p.m. AEST, up 0.40 percent for the session. The 52-week range was AUD 5.96 to AUD 23.20, and volume stood at 802,560 shares.