Summary

  • Megaport reported Network ARR of A$289.6 million, 114% net revenue retention and 40,735 services, evidence that the operating interconnection platform became denser in FY26.
  • A$1.3 billion of announced strategic-contract value and A$435 million of attached ARR remain a delivery story: equipment, space and power have been procured, but deployment continues through FY27.

Megaport’s 20 August full-year result contains two businesses moving on different clocks. The first is the network fabric already selling ports, virtual connections and services. The second is a capital-heavy compute programme whose largest numbers describe contracts and planned deployments, not capacity already accepted by customers.

Keeping those clocks separate is the useful reading of FY26. Network ARR reached A$289.6 million at 30 June, up 19% as reported from A$243.8 million. Megaport gave constant-currency growth of 27% including India and 24% excluding it. Net revenue retention by logo was 114%, five percentage points higher than a year earlier; that measure is in constant currency and excludes India.

The operating footprint also became busier. Megaport counted 40,735 Network services, 3,206 customer logos and 725 large customers, all excluding India. Services grew 20%, faster than the 12% increase in logos. That relationship matters more to an interconnection platform than footprint alone: additional services on shared infrastructure are evidence of greater customer use, though they do not reveal traffic volume, latency or the profitability of any particular connection.

During the year, the company added 155 net Network data centres and finished with 1,138. Customers in the FY26 data-centre cohort contributed A$3.0 million of exit ARR, excluding India. It also said it raised IP-transit port capacity from 3 Tbps to 15 Tbps, enabled 72 more locations at 400G and increased the number of 100G-enabled locations by 67%. These are capability measures. They should not be read as proof that 15 Tbps was used or carried as traffic.

The financial bridge reinforces the distinction. Group revenue was A$312.2 million—A$268.3 million from Network and A$43.9 million from Compute—while group ARR at year-end was A$395.2 million, split between A$289.6 million of Network ARR and A$105.6 million of Compute ARR. ARR is a run-rate measure, not recognised revenue.

Strategic contracts were still a small FY26 revenue contributor but a large capital user. Megaport attributed A$1.0 million of revenue, A$0.6 million of EBITDA and A$54.3 million of capital expenditure to them. Total reported capex was A$152.6 million, or A$98.3 million excluding those contracts.

The headline future numbers are larger: A$1.3 billion of announced total contract value, A$435 million of ARR attached to those contracts and A$826 million of supporting capex. Megaport says equipment, space and power have been procured for all contracts announced by 20 August. Delivery and deployment, however, are progressing through FY27. Neither total contract value nor attached ARR is the same as cash received, FY26 revenue or a fully live run rate.

There is already a reminder that execution can change after signing. Supply constraints affected components for two contracts announced on 3 June. Megaport arranged alternatives and entered two contracts using higher-grade GPUs. It expects about US$87.1 million of additional aggregate contract value, without a material change to aggregate ARR or capital requirements. The change may preserve economics on paper; it does not remove scheduling, integration or acceptance risk.

The planned on-demand GPU pool is earlier still. The company retains a six-to-nine-month procurement-and-deployment period, followed by three to six months of ramp, with a 16-to-22-month payback target. A sample representing less than 5% of GPUs is planned for the second quarter of FY27. Those are targets and a test plan, not evidence of a functioning pool.

For buyers of network and cloud infrastructure, FY26 therefore offers a positive but bounded signal. More services, stronger retention and a larger data-centre footprint support the case that Megaport’s network fabric is gaining density. The compute expansion can reinforce that fabric if deployments create new private-connectivity demand. Until delivery and acceptance make that link observable, the strategic-contract figures should remain in a separate column.

Sources