Highlights

• Megaport signed three AI infrastructure contracts worth about AU$978.6M (US$685.0M), with roughly AU$322.6M in customer prepayments.
• FY27 Group Revenue guidance is raised to AU$720M–AU$810M, and the EBITDA margin target rises to 42–44%.
• Shares closed at $21.990, up $3.140 (16.657%), after the announcement.

Megaport Adds Nearly AU$1 Billion in New AI Contracts

Megaport Limited (ASX: MP1) announced on 29 September 2026 that it has secured three new AI infrastructure agreements through its wholly owned subsidiary, Latitude.sh. The contracts have a combined total contract value (TCV) of about US$685.0M, or AU$978.6M. They cover GPU and CPU compute, networking and storage for AI applications and inference workloads.

Two of the three agreements are with new customers. Two are with US-based technology providers backed by institutional shareholders. The third is with a publicly listed enterprise that runs its own AI workloads. The contracts have a weighted average term of just over four years. They are expected to add about AU$232.4M in annual recurring revenue (ARR) once they reach full run-rate by Q4 FY27.

With this deal, the total value of strategic contracts Megaport has announced since April 2026 rises to approximately AU$2.3 billion. Pro forma Group ARR now stands at around AU$1.1 billion, and more than 85% of it comes from North America.

Strong Prepayments and a Fully Funded Position

Customers will prepay roughly AU$322.6M. Of that, about AU$281.5M comes from a single new customer seeking fast access to GPUs. To speed up delivery, Megaport is reassigning GPUs it had already ordered for its on-demand GPU pool. It has also started buying replacement equipment worth about AU$360.0M, which it expects to deploy by Q4 FY27.

The company recently finalised its debt facility and increased it to AU$845M. Megaport says it is fully funded for its FY27 capital spending, with pro forma liquidity of about AU$362.2M.

Trading Update Shows Rapid Compute Growth

Compute ARR reached AU$201.4M as at 22 September 2026. That is up 90% since 30 June 2026 and 227% since Latitude.sh was acquired. Management said the growth came mainly from infrastructure for earlier strategic contracts arriving and being deployed sooner than expected.

The core Network business also performed well. Network ARR rose to AU$302.6M in August 2026, a 29% increase on a constant currency basis. Net Revenue Retention (NRR) improved by 6 percentage points to 116%.

FY27 Guidance Upgraded

Megaport has raised its FY27 outlook across the board:

• Group Revenue: AU$720M–AU$810M (previously AU$620M–AU$730M)
• EBITDA margin: 42–44% (previously 38–40%)
• Capex: AU$1.78B–AU$1.88B (previously AU$1.28B–AU$1.38B), reflecting the new contracts

Once all its strategic contracts are billing, the company expects an annualised EBITDA run rate above AU$650M.

CEO Michael Reid said the new contracts broaden Megaport's customer base and support its expansion as an AI inference platform. He added that the company remains focused on delivery and disciplined investment.

Market Reaction

Investors responded strongly. Megaport shares last traded at $21.990, up $3.140, or 16.657%, on the day of the announcement.

Note- All data presented is based on information available at the time of writing.

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