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Megaport
(Sydney:MP1)
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Rating:56Neutral
Price Target:
AU$19.00
â–˛(8.51% Upside)
Action:Reiterated
Date:10/16/26
The score is driven primarily by mixed financial performance: strong top-line momentum and low leverage are offset by volatile profitability and a sharp FY2026 free-cash-flow draw. The latest earnings call meaningfully improves the outlook with aggressive FY27 guidance backed by large contract wins, but technicals remain weak (below key moving averages with soft momentum) and valuation is challenged by losses and no dividend yield support in the provided data.
Positive Factors
Strong Revenue and ARR Growth
Rapid revenue and ARR expansion indicates strong demand for Megaport’s connectivity and infrastructure services. Sustained growth at this scale can improve operating leverage, increase customer network density, and provide a durable base for further expansion across enterprise, cloud, and compute markets.
Negative Factors
Unstable Profitability
Revenue growth has not yet translated into stable earnings, as Megaport moved back to a sizable loss and reported weak gross and operating margins in FY26. Persistent cost pressure below EBITDA could limit self-funded expansion and make future performance more sensitive to execution and scale benefits.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue and ARR Growth
Rapid revenue and ARR expansion indicates strong demand for Megaport’s connectivity and infrastructure services. Sustained growth at this scale can improve operating leverage, increase customer network density, and provide a durable base for further expansion across enterprise, cloud, and compute markets.
Read all positive factors
Megaport (MP1) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$4.17B
Dividend YieldN/A
Average Volume (3M)2.29M
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth37.49%
EPS Growth-11816.67%
CountryAU
Employees663
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.21
Shares Outstanding237,965,440
10 Day Avg. Volume3,370,721
30 Day Avg. Volume2,293,815
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)3.85
Price to Sales (P/S)12.36
P/FCF Ratio-16.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$27.58Price Target Upside57.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)0.14
Revenue Forecast (FY)AU$760.74M
Megaport Business Overview & Revenue Model
Company Description
Megaport Limited provides on-demand interconnection services in Australia, New Zealand, Hong Kong, Singapore, Japan, the United States of America, Canada, Mexico, and Brazil, and Europe. It operates a Software Defined Network platform that enables...
How the Company Makes Money
Megaport primarily makes money by selling recurring connectivity services delivered over its software-defined network. The core revenue stream is customer subscriptions/recurring charges for network ports and virtual connections provisioned throug...
Megaport Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call conveyed strong operational execution and a series of high-impact commercial wins (large TCV, ARR acceleration, product launches, successful acquisitions and clear FY'27 upside guidance). These positives are tempered by execution and timing risks: supply chain/pricing volatility, equipment procurement/installation lead times, integration and higher operating costs, and the need to manage funding as scale increases. On balance, the momentum in revenue, ARR, product capability and capital raises outweigh the risks, though timing and deployment execution remain key near-term watchpoints.Positive Updates
Significant Total Contract Value (TCV) Wins
Announced approximately $1.3 billion of TCV since April 27 (notable deals: $35M on Apr 27, $254M on May 14, $458.9M on Jun 3, $506M announced today). These deals are expected to add $435M of ARR once fully deployed.
Negative Updates
Timing and Procurement Risks
Revenue recognition and ARR additions are sensitive to equipment delivery and deployment timing (procurement/delivery windows typically 6–9 months; GPU pool ramp 3–6 months post-deployment). Management warned that small delays materially affect quarterly/annual reported revenue and contributed to guidance ranges.
Read all updates
Q4-2026 Updates
Positive
Negative
Significant Total Contract Value (TCV) Wins
Announced approximately $1.3 billion of TCV since April 27 (notable deals: $35M on Apr 27, $254M on May 14, $458.9M on Jun 3, $506M announced today). These deals are expected to add $435M of ARR once fully deployed.
Read all positive updates
Company Guidance
Management guided FY27 group revenue of $620–$730 million (roughly 100–130% YoY growth versus FY26 revenue of $312m), split to about $315–$325m of network revenue and $305–$405m of compute revenue, with EBITDA margin targeted at 38–40%; this outlook is driven by recently announced strategic deals totaling $1.3 billion of TCV that are expected to add ~ $435m of ARR once deployed and are supported by approximately $826m of CapEx, alongside an ~$825m new debt facility and an ~$827m entitlement raise to fund growth. For context, FY26 finished with $395m of ARR (network ARR $289.6m, compute ARR $105m), group revenue $312m (+37% YoY), network net revenue retention of 114%, 155 net new data centers added (up 35%), and $62.3m of net ARR incremental additions in FY26.Megaport Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
68
Positive
Cash Flow
41
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 312.19M | 227.06M | 195.27M | 153.08M | 109.73M |
| Gross Profit | 9.59M | 188.56M | 158.86M | 6.10M | -20.42M |
| EBITDA | 43.03M | 43.92M | 40.39M | 28.00M | -7.13M |
| Net Income | -39.00M | -292.00K | 9.61M | -9.77M | -48.49M |
Balance Sheet | |||||
| Total Assets | 1.46B | 260.20M | 214.70M | 202.23M | 220.38M |
| Cash, Cash Equivalents and Short-Term Investments | 435.44M | 102.07M | 72.43M | 48.45M | 82.55M |
| Total Debt | 100.34M | 28.30M | 15.79M | 19.96M | 27.27M |
| Total Liabilities | 462.65M | 81.52M | 60.62M | 74.30M | 78.14M |
| Stockholders Equity | 1.00B | 178.69M | 154.08M | 127.93M | 142.25M |
Cash Flow | |||||
| Free Cash Flow | -236.58M | 33.95M | 30.32M | -24.57M | -49.71M |
| Operating Cash Flow | 75.56M | 68.25M | 50.17M | 8.23M | -9.83M |
| Investing Cash Flow | -445.62M | -34.29M | -19.85M | -32.73M | -50.26M |
| Financing Cash Flow | 699.37M | -6.03M | -7.43M | -10.40M | 5.87M |
Megaport Technical Analysis
Positive
17.51
Price Trends
18.11
Negative
18.86
Negative
14.37
Positive
Market Momentum
-0.73
Positive
49.01
Neutral
47.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MP1, the sentiment is Positive. The current price of 17.51 is below the 20-day moving average (MA) of 18.33, below the 50-day MA of 18.11, and above the 200-day MA of 14.37, indicating a neutral trend. The MACD of -0.73 indicates Positive momentum. The RSI at 49.01 is Neutral, neither overbought nor oversold. The STOCH value of 47.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MP1.
Megaport Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | AU$48.36M | -50.25 | -6.86% | ― | 33.71% | -277.88% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | AU$35.97M | 83.40 | 1.06% | 15.29% | 4.73% | ― | |
56 Neutral | AU$4.17B | -87.21 | -5.20% | ― | 37.49% | -11816.67% | |
49 Neutral | AU$13.67M | -2.27 | -21.70% | ― | -4.17% | 80.49% | |
48 Neutral | AU$12.20M | -1.69 | -162.05% | ― | -11.66% | 89.02% | |
48 Neutral | AU$6.07M | 29.00 | -11.62% | ― | 37.65% | ― |
* Technology Sector Average
AU:MP1
Megaport
18.48
3.30
21.71%
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Megaport Corporate Events
Megaport Sets Date and Details for 2026 Annual General Meeting
Oct 19, 2026
Megaport Limited has scheduled its 2026 Annual General Meeting for 20 November 2026 at 11:00am AEST, confirming key corporate governance arrangements for shareholders. The company has released the formal Notice of Meeting and a sample voting form,...
Megaport Reports Lapse and Cessation of Restricted Stock Units
Oct 8, 2026
Megaport Limited has notified the market of the cessation of 46,890 restricted stock units, identified under the ASX code MP1AE, following the lapse of conditional rights to these securities. The RSUs expired on 30 September 2026 because the perfo...
Megaport Director Jon Gidney Acquires First Indirect Stake in Company
Oct 1, 2026
Megaport has disclosed a change in director Jon Gidney’s interests, reporting that an entity associated with him acquired 4,971 fully paid ordinary shares in the company. The purchase, executed via an on-market trade for a total consideratio...
Megaport CEO Sells Shares to Meet Tax Obligations While Maintaining Significant Equity Exposure
Sep 30, 2026
Megaport has disclosed that Chief Executive Officer and Managing Director Michael Reid sold 335,341 Megaport shares to partially fund personal tax obligations arising from equity awards under the company’s Employee Share Plan, with the sale ...
Megaport Lands Nearly A$1B in New AI Deals and Lifts FY27 Guidance
Sep 28, 2026
Megaport has secured three new AI infrastructure contracts with a combined total contract value of about A$978.6 million, lifting the total strategic contract value announced since April to roughly A$2.3 billion. The agreements, largely focused on...
Megaport Updates Director Michael Reid’s Equity Incentive Holdings
Sep 7, 2026
Megaport has disclosed changes in the equity-linked compensation held indirectly by director Michael Reid, reflecting movements in performance restricted stock units granted under the company’s short- and long-term incentive plans. Reid̵...
Megaport Seeks ASX Quotation for 1.9 Million New Shares
Sep 2, 2026
Megaport Limited has lodged a new application with the ASX for quotation of additional ordinary fully paid shares. The filing relates to the issuance of 1,900,602 MP1 securities, which are scheduled to be quoted on September 3, 2026.The new share ...
Megaport Issues 520,501 Unquoted Restricted Stock Units Under Incentive Plan
Sep 1, 2026
Megaport Limited has issued 520,501 unquoted restricted stock units under its employee incentive scheme, effective 1 September 2026. The move underscores the company’s ongoing use of equity-based compensation to retain and motivate staff, po...
Megaport Tightens Governance Framework in FY26 Statement
Aug 19, 2026
Megaport Limited has released its FY26 Corporate Governance Statement, outlining an updated framework designed to reinforce board effectiveness and enhance oversight of management and strategic decision-making. The document details the skills and ...
Megaport Files Updated ASX Corporate Governance Statement and Appendix 4G
Aug 19, 2026
Megaport Limited has lodged its updated corporate governance statement for the financial year ended 30 June 2026, making it available via its investor website in line with ASX Listing Rule requirements. The statement, current as of 20 August 2026 ...
Megaport Secures $506m in New AI Infrastructure Contracts and Boosts Strategic Deal Value
Aug 19, 2026
Megaport has secured a new portfolio of three major infrastructure contracts via its Latitude.sh subsidiary, with a combined total contract value of about USD$359.4 million and annualised recurring revenue of roughly USD$91.7 million once fully de...
Megaport posts record FY26 growth and taps investors to fund AI infrastructure push
Aug 19, 2026
Megaport reported record FY26 results, fuelled by strong growth in its core network business and the integration of two acquisitions that broadened its platform across compute, network and storage. The purchase of Latitude.sh added dedicated CPU, ...
Megaport Director Lisa Hennessy Steps Down With No Securities Interests
Jul 31, 2026
Megaport Limited has disclosed that director Lisa Hennessy ceased to be a member of the board effective 31 July 2026, as recorded in a final director’s interest notice lodged with the ASX. The filing confirms that Hennessy held no relevant i...
Megaport Reshapes Remuneration & Nomination Committee After Director Resignation
Jul 31, 2026
Megaport has announced the immediate resignation of Non-Executive Director Lisa Hennessy, who also chaired the Remuneration Nomination Committee. The board has begun the process of appointing a new committee chair, underscoring ongoing attention ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.