Does ASX 200 Tech stock Megaport hold much more potential?

Megaport shares may still rise further as strong AI infrastructure demand and long-term contracts continue supporting its rapid business growth.

Megaport Limited (ASX: MP1) 

stock price could still move higher as the company continues securing large long-term AI infrastructure contracts while rapidly growing its recurring revenue business. The ASX tech stock has already jumped around 75% in the past month and recent company updates suggest strong momentum may continue ahead.

Megaport on 27 April 2026 announced that its subsidiary Latitude.sh secured a new 36-month compute and storage contract worth about USD$25.1 million or AUD$35.4 million. The agreement adds around USD$8.4 million or AUD$11.8 million in annual recurring revenue. 

The company also said Compute ARR for its on-demand platform rose 31% to USD$58.7 million from USD$45.0 million since 31 December 2025. This growth happened before including the newly signed strategic contract. Megaport stated that more revenue is now locked into contracted agreements instead of short monthly deals which gives better visibility for future earnings.

Strong Demand from AI Infrastructure Market

Megaport explained that Latitude.sh is benefiting from rising AI-driven demand for CPU GPU and storage services. The company believes its infrastructure platform is well placed to capture more opportunities linked to artificial intelligence workloads. 

Along with the compute business Megaport Network also continued delivering strong growth. Network ARR including India reached AUD$272.0 million at 31 March 2026 which was up 23% on a constant currency basis compared to the previous year. Excluding India, the increase was 20%. This shows the network side of the business is also expanding steadily across global markets.

Three main contracts

On 14 May 2026 the company announced three major GPU CPU network and storage contracts across two customers. These agreements have a combined total contract value of about USD$182.9 million. The deals add around USD$65.2 million or AUD$90.6 million in annual recurring revenue. 

Megaport said these are binding fixed term agreements which provide committed revenue regardless of customer usage levels. Two contracts represent roughly 90% of total value and run for 36 months while the third agreement has a 24-month term.

Outlook

Megaport stated that combining its automated network infrastructure with Latitude.sh compute and storage services has created a global automated platform operating across more than 1,100 data centre locations. 

The company said this allows rapid deployment low latency and dedicated high-performance infrastructure for enterprises and hyperscalers. 

Megaport also confirmed FY26 revenue EBITDA and base capex guidance remain unchanged. Though, if equipment for the new contracts is delivered before 30 June 2026, then FY26 capex could rise by another AUD$140.3 million. Further financial details are expected in August 2026 during the full year results announcement.

(Source: Company Report)