2 ASX growth shares to buy with big growth potential!

ASX growth shares can be among the best investments to own because of their ability to compound earnings over the long term.

When a company is growing revenue rapidly, there is a strong chance that operating leverage will improve, and profit margins can increase. Typically, investors usually value a business based on how much net profit it could make in the future,

The investment team from WAM Active Ltd (ASX: WAA) have outlined a couple of compelling ASX shares that could be great opportunities today. They are usually looking for mispriced opportunities in the Australian market.

EchoIQ Ltd (ASX: EIQ)

WAM described EchoIQ as an Australian medical technology company focused on improving cardiology decision-making through AI to detect structural heart issues in echocardiograms.

The fund manager noted that the company has received US Food and Drug Administration (FDA) approval for severe aortic stenosis detection, with additional FDA clearance for heart failure detection expected in the near term.

WAM noted that the EchoIQ share price rose 44% in May after the ASX growth share announced an expanded resale and distribution agreement with the Mount Sinai Health System (one of the leading cardiology programs in the US) in late April.

The investment team explained that the agreement provides meaningful clinical validation and further de-risks the FDA pathway. FDA clearance for heart failure is expected in the coming weeks, which would significantly expand EchoIQ’s US addressable market and support a “material uplift” in revenue generation.

WAM said:

We believe additional hospital signings and strategic partnership discussions with Australian and US-based parties remain key near-term catalysts for further share price re-rating.

Megaport Ltd (ASX: MP1)

The other ASX growth share that WAM highlighted is Megaport, a Brisbane-headquartered network-as-a-service provider. After its 2025 acquisition of Latitude.sh, it also operates a global on-demand compute platform.

The company is positioned as one of the few ASX (growth) shares that has direct exposure to the infrastructure supporting artificial intelligence (AI) adoption.

Last month, the ASX growth share announced three binding contracts with two US AI customers, with a total contract value (TCV) of approximately US$183 million and annualised recurring revenue (ARR) of approximately US$65 million.

Two of those three contracts have 36-month terms, providing visibility into revenue. The Megaport share price increased by 28% on the day, exceeding the contract value.

The agreements validate the strategic rationale for the Latitude.sh on-demand ARR increasing 31% since the acquisition, compute is becoming a key growth driver.

WAM concluded:               

We continue to hold Megaport, with the May contract wins supporting the FY2026 and FY2027 earnings outlook, and further customer announcements representing a credible near-term catalyst.

The post 2 ASX growth shares to buy with big growth potential! appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.