Megaport Limited Q4 2026 Earnings Recap

Shares fell 7.3% following an earnings report that disappointed investors primarily due to a cautious outlook and margin pressure despite solid revenue growth and contract wins.

Key Takeaways

• Group revenue grew 37% year-on-year to $312 million, with network revenue expanding 27% in constant currency to $289.6 million.
• Annual recurring revenue (ARR) reached $395 million, driven by a 72% ARR increase in the recently acquired compute business to $105 million.
• Total contract value (TCV) announced since late April totaled $1.3 billion, signaling strong future bookings but not yet reflected in FY ’26 results.
• Network net revenue retention improved to 114%, up 5 percentage points year-over-year, highlighting moderate customer stickiness gains.
• Despite operational progress, cautious outlook and potential margin pressure overshadowed results, leading to a notable stock decline.