Australia-based cloud networking provider Megaport Ltd reported a 37% year-on-year increase in group revenue to AUD 312 million for the fiscal year ended June 2026, driven by expansion in compute services and international markets.
Network revenue, the company’s core segment, rose to AUD 268 million, while compute revenue—including contributions from the Latitude.sh acquisition—reached AUD 44 million. Annual recurring revenue (ARR) totaled AUD 395 million as of June 2026, with network ARR increasing 27% in constant currency and compute ARR up 72% since the Latitude.sh deal. EBITDA for the year was AUD 77 million, equating to a 25% margin, exceeding the top end of guidance.
Capital expenditure remained within guidance at AUD 98 million, excluding strategic contracts, while the company committed AUD 826 million in CapEx for contracts totaling AUD 1.3 billion in total contract value (TCV). Strategic contracts signed between April and August 2026 alone accounted for AUD 1.3 billion in TCV, including a AUD 506 million agreement announced on the day of the earnings call.
Megaport added 155 net new data centers in FY2026, bringing its global footprint to 1,100 facilities across 31 countries. The Extreme IX acquisition expanded its presence in India, while the Latitude.sh deal marked its entry into CPU and GPU-as-a-service platforms. Customer cohort performance showed a 55% increase in ARR compared with prior records.
For FY2027, Megaport guided revenue to AUD 620 million–AUD 730 million, implying growth of 100%–130% from FY2026. Network revenue is expected to reach AUD 315 million–AUD 325 million, while compute revenue is forecast at AUD 305 million–AUD 405 million. EBITDA margin guidance was set at 38%–40%, with total CapEx projected at AUD 1.3 billion to support strategic initiatives.
Shares of Megaport fell 6.1% in premarket trading to AUD 19.10, following a 73% year-to-date gain. The stock remains above its 52-week low of AUD 6.40 but below its 52-week high of AUD 22.98.
CEO Michael highlighted the company’s automated infrastructure model, stating it aims to become a global leader in automated infrastructure-as-a-service with sustainable 20%-plus growth by FY2030 and beyond. CFO Leticia Dorman emphasized reinvestment in product and engineering while maintaining profitability, noting that margins would not be sacrificed for short-term gains.
