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Nextdc Limited
(Sydney:NXT)
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Rating:49Neutral
Price Target:
AU$13.50
▼(-2.17% Downside)
Action:Reiterated
Date:08/28/26
The score is held back primarily by weak cash flow (persistently large negative free cash flow) and recent operating profitability pressure (negative EBIT), alongside bearish-to-neutral technicals. These are partially offset by a constructive earnings-call outlook with strong FY-27 growth guidance and a large contracted order book, but execution and funding requirements remain key swing factors.
Positive Factors
Recurring colocation model
Contract-based recurring colocation, power and connectivity revenues provide visibility and can compound as customers expand capacity. The facility ecosystem also supports interconnection demand, creating potential switching and network-density benefits.
Negative Factors
Heavy capital intensity
Persistently negative free cash flow reflects substantial data-centre construction and expansion requirements. Continued investment may require external funding, leaving the company more exposed to financing conditions and execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring colocation model
Contract-based recurring colocation, power and connectivity revenues provide visibility and can compound as customers expand capacity. The facility ecosystem also supports interconnection demand, creating potential switching and network-density benefits.
Read all positive factors
Nextdc Limited (NXT) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$10.48B
Dividend YieldN/A
Average Volume (3M)2.19M
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue Growth16.22%
EPS GrowthN/A
CountryAU
Employees310
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.13
Shares Outstanding760,416,300
10 Day Avg. Volume2,336,687
30 Day Avg. Volume2,187,833
Financial Highlights & Ratios
PEG Ratio-0.54
Price to Book (P/B)1.58
Price to Sales (P/S)19.35
P/FCF Ratio-4.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$19.43Price Target Upside40.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.39
Revenue Forecast (FY)AU$729.82M
Nextdc Limited Business Overview & Revenue Model
Company Description
NEXTDC Limited is an Australian technology enterprise that delivers comprehensive data center solutions, encompassing outsourcing services, diverse connectivity options, and specialized infrastructure management software. The company facilitates e...
How the Company Makes Money
NextDC primarily makes money by selling colocation and related data-centre services under customer contracts. Its key revenue streams are: (1) Colocation services: recurring fees for dedicated space (e.g., racks/cages/suites) in its data centres, ...
Nextdc Limited Earnings Call Summary
Earnings Call Date:Aug 27, 2026
(Q4-2026)
| Next Earnings Date:Mar 02, 2027
Earnings Call Sentiment Positive
The call presented a strong operational and financial momentum: record contracting (495 MW), a large binding forward order book (565 MW), double-digit net revenue and EBITDA growth (16% and 15%), substantial liquidity ($8.7B) and aggressive FY'27 revenue/EBITDA guidance (>50% net revenue growth and underlying EBITDA $385M–$410M). These positives were balanced against significant near-term capital expenditure needs ($5.25B–$5.75B), higher facility and corporate costs (each +17%), remaining billing activation risk (175 MW billing vs 740 MW contracted), and regulatory/power allocation uncertainty for future sites. On balance, the call emphasised execution and funding readiness to convert a large contracted pipeline into revenue, while acknowledging near-term execution and policy risks.Positive Updates
Record Contracting Year and Forward Order Book
Contracted utilization tripled (up 202%) to 740 MW pro forma; company contracted 495 MW in FY'26 and the forward order book reached 565 MW (all binding customer contracts) which underwrites a billing ramp to 740 MW by FY'30.
Negative Updates
High Near-Term Capital Expenditure Requirement
FY'27 total capital expenditure guidance of $5.25B–$5.75B (including ~$500M reimbursable customer fit-out) represents a large near-term cash outflow and acceleration of investment following FY'26 contracting of 495 MW.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Contracting Year and Forward Order Book
Contracted utilization tripled (up 202%) to 740 MW pro forma; company contracted 495 MW in FY'26 and the forward order book reached 565 MW (all binding customer contracts) which underwrites a billing ramp to 740 MW by FY'30.
Read all positive updates
Company Guidance
NEXTDC guided to strong FY‑27 growth, forecasting net revenue of $615–640m ( >50% YoY) and underlying EBITDA of $385–410m as the 565 MW forward order book accelerates billing (197 MW to convert in FY‑27 and a further 221 MW in FY‑28); total capital expenditure is expected to be $5.25–5.75bn (including ~$500m of reimbursable customer fit‑out) while 537 MW of built capacity is in progress and >130 MW planned against a total planned portfolio capacity of >3 GW; this sits on a balance sheet with $10.2bn of assets (PP&E $5.8bn, investment properties $3.2bn), net assets of ~ $6.1bn, $8.7bn available liquidity and $9.75bn raised in FY‑26, supporting delivery of contracted utilization of 740 MW (billing utilization was 175 MW in FY‑26 after 58% growth and FY‑26 contracted wins of 495 MW).Nextdc Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 496.49M | 427.21M | 404.34M | 362.37M | 291.04M |
| Gross Profit | 7.12M | 350.20M | 307.90M | 75.92M | 79.37M |
| EBITDA | 226.36M | 227.71M | 217.77M | 185.61M | 161.58M |
| Net Income | 82.06M | -60.54M | -44.15M | -25.64M | 9.14M |
Balance Sheet | |||||
| Total Assets | 10.24B | 5.69B | 5.22B | 3.85B | 2.98B |
| Cash, Cash Equivalents and Short-Term Investments | 875.98M | 243.69M | 1.24B | 765.84M | 456.56M |
| Total Debt | 3.36B | 1.21B | 1.46B | 1.44B | 1.14B |
| Total Liabilities | 4.14B | 1.54B | 1.65B | 1.57B | 1.28B |
| Stockholders Equity | 6.09B | 4.15B | 3.57B | 2.28B | 1.70B |
Cash Flow | |||||
| Free Cash Flow | -1.98B | -1.37B | -809.66M | -579.21M | -459.80M |
| Operating Cash Flow | 99.89M | 222.64M | 128.79M | 126.79M | 122.04M |
| Investing Cash Flow | -3.06B | -1.59B | -950.91M | -710.02M | -599.93M |
| Financing Cash Flow | 3.60B | 372.08M | 1.29B | 893.06M | 286.98M |
Nextdc Limited Technical Analysis
Negative
13.80
Price Trends
13.96
Negative
14.25
Negative
13.62
Negative
Market Momentum
-0.07
Positive
43.91
Neutral
34.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NXT, the sentiment is Negative. The current price of 13.8 is below the 20-day moving average (MA) of 14.09, below the 50-day MA of 13.96, and above the 200-day MA of 13.62, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 43.91 is Neutral, neither overbought nor oversold. The STOCH value of 34.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NXT.
Nextdc Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | AU$2.34B | 29.90 | 33.69% | 3.67% | 12.60% | 8.55% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | AU$4.12B | -79.68 | -5.99% | ― | 37.49% | -11816.67% | |
58 Neutral | AU$1.56B | 50.72 | 5.01% | ― | 5.50% | -7.85% | |
49 Neutral | AU$10.48B | -157.33 | -1.38% | ― | 16.22% | ― | |
46 Neutral | AU$182.49M | -9.74 | -24.33% | ― | -49.13% | 0.65% | |
34 Underperform | AU$8.56M | -0.35 | -346.49% | ― | 6.70% | 33.88% |
* Technology Sector Average
AU:NXT
Nextdc Limited
13.58
-0.25
-1.80%
AU:MP1
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17.06
1.37
8.76%
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43.31%
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Nextdc Limited Corporate Events
NEXTDC Sets Out FY26 Corporate Governance Framework to Support Digital Growth
Aug 27, 2026
NEXTDC Limited has released its FY26 Corporate Governance Statement, outlining the structures and practices guiding its management and oversight from 1 July 2025 to 30 June 2026. The document details how the company’s governance underpins it...
NEXTDC Sets Out Broad ESG Agenda in FY26 Sustainability Report
Aug 27, 2026
NEXTDC has released its FY26 Environmental, Social and Governance Report, outlining its approach to responsible governance, environmental management and social sustainability across its nationwide data centre portfolio. The report details how the ...
NEXTDC Outlines FY26 Results and FY27 Outlook
Aug 27, 2026
NEXTDC Limited has released its full‑year FY26 results presentation, outlining financial performance, operational highlights and business developments over the period. The materials flag key themes around FY26 business performance, environme...
NEXTDC posts record FY26 result and ramps up capacity on surging demand
Aug 27, 2026
NEXTDC reported strong FY26 results, with net revenue rising 16% to A$405 million and underlying EBITDA up 15% to A$248.8 million, both above guidance, while statutory profit swung to A$82.1 million from a loss a year earlier. The data centre oper...
NEXTDC Swings to Profit on Contract Reclassification and Asset Revaluation
Aug 27, 2026
NEXTDC Limited reported a 16% rise in revenue to $496.5 million for the year to 30 June 2026, with net profit after tax swinging to $82.1 million from a $60.5 million loss a year earlier. Basic net tangible asset backing per share increased to $7....
NEXTDC sets date for full-year 2026 results and investor webcast
Aug 14, 2026
NEXTDC Limited has announced that it will release its financial results for the full year ended 30 June 2026 after the market closes on 27 August 2026. The company will follow the release with a results briefing via webcast at 9:30am AEST on 28 Au...
NEXTDC boosts contracted utilisation and forward order book while holding FY26 guidance
Jul 21, 2026
NEXTDC has reported that its pro forma contracted utilisation rose by 73MW, or 11%, to 740MW as at 30 June 2026, driven by additional customer contract wins across its data centre portfolio. This growth underpins a pro forma forward order book tha...
NEXTDC boosts senior debt capacity to A$8.7bn to fund data centre expansion
Jul 9, 2026
NEXTDC Limited has upsized its new senior debt facilities to A$2.3 billion, lifting total available senior debt capacity from A$6.4 billion to A$8.7 billion and underscoring strong support from a broad syndicate of domestic and international banks...
Nextdc Issues New Shares Following Option Conversions
Jul 7, 2026
Nextdc Limited has notified the market of the issue of a small tranche of new ordinary fully paid shares following the conversion of previously unquoted options or other convertible securities. The company will issue 4,653 NXT ordinary shares on 7...
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.