Megaport secures $978.6 million in new AI infrastructure contracts

Megaport Ltd has reported a significant surge in business activity following the signing of three new AI infrastructure contracts worth approximately $978.6 million. These deals, facilitated through the company’s Latitude business, include both new and existing customers. The company expects to receive roughly $322.6 million in prepayments from these agreements.

As a result of these contracts, Megaport has upgraded its FY27 guidance, projecting group revenue to reach between $720 million and $810 million, up from previous estimates of $620 million to $730 million. The company also raised its EBITDA margin expectations for FY27 to a range of 42% to 44%.

The software-defined network provider noted that its pro forma group annual recurring revenue (ARR) has increased to approximately $1.1 billion, with more than 85% of that revenue originating from North America. This news contributed to a strong rally for the ASX-listed tech shares, which have climbed 204% since late March.