The Megaport Ltd (ASX: MP1) share price is in focus after the company secured three new AI infrastructure contracts worth nearly $1 billion and upgraded its FY27 guidance.

What did Megaport report?

• Three new AI infrastructure contracts with a combined total contract value (TCV) of A$978.6 million
• Group pro forma annual recurring revenue (ARR) lifted to around A$1.1 billion, with over 85% from North America
• Prepayments on these contracts total A$322.6 million, supporting future growth
• Group FY27 revenue guidance raised to A$720–810 million (from A$620–730 million)
• FY27 EBITDA margin guidance increased to 42–44% (previously 38–40%)
• FY27 planned capital expenditure (capex) raised to A$1.78–1.88 billion, reflecting new contract requirements

What else do investors need to know?

Megaport’s new agreements have brought the combined total contract value for strategic contracts announced since April 2026 to A$2.3 billion. The contracts span GPU and CPU compute, networking, and storage for AI and inference workloads, and include prepayments that help fund capital expenditure and bolster liquidity.

Network ARR as of 31 August 2026 reached A$302.6 million, up 29% year-on-year on a constant currency basis, while Compute ARR (September 2026) stood at A$201.4 million, up 90% from June and up 227% since acquisition. Megaport’s Net Revenue Retention for the network climbed to 116%. The company remains fully funded for its updated strategy, ending with pro forma liquidity of approximately A$362.2 million.

What did Megaport management say?

Michael Reid, Megaport CEO said:

Since April, we’ve announced approximately A$2.3 billion in total strategic contract value…Together with our existing business, these contracts support approximately A$1.1 billion in Group ARR once deployed.

Earlier deployments, new contracts, and Network growth underpin our upgraded FY27 revenue and EBITDA margin guidance. Customers have committed approximately A$323 million in prepayments on today’s contracts, supporting the infrastructure investment behind future growth.

We’re broadening our customer base, replenishing our GPU pool, and expanding our AI inference platform. Our progress has been extraordinary, and we remain focused on delivery and disciplined investment. We’re just getting started.

What’s next for Megaport?

Megaport expects these new contracts to begin billing progressively through FY27, helping the business reach its full run-rate ARR by Q4 FY27. The company is also investing heavily in replenishing its GPU pool and securing infrastructure to maintain growth momentum.

Looking ahead, management sees strong demand for AI infrastructure services and is targeting continued expansion of its platform and customer base. With growth driven by both existing and new strategic contracts, Megaport’s upgraded guidance reflects confidence in execution and sector opportunities.

Megaport share price snapshot

Over the past 12 months, Megaport shares have risen 22%, outperforming the S&P/ASX 200 Index (ASX: XJO).

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The post Megaport lifts FY27 outlook after landing $1B in new AI infrastructure deals appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The oil and gas sector has certainly been volatile with the conflict in the Middle East.

In this environment, it can be useful to defer to the experts, with Macquarie recently releasing two new research reports: one on an oil and gas junior and one on a major company.

Let’s see who they like.

Strike Energy Ltd (ASX: STX)

Strike shares have returned exactly 0% over the past 12 months, but the Macquarie analysts believe that’s about to change.

Key to this is an agreement Strike recently made with Gina Rinehart’s Hancock Energy to process the gas from its West Erregulla project through Hancock’s Belisama facility.

The deal also included a $30 million loan from Hancock, which Strike will use to support its share of pre-development activities.

The West Erregulla joint venture is targeting a final investment decision in FY28, with first gas expected in CY29.

Macquarie said the deal was “a key turning point”, materially improving the development pathway for the project.

The broker said:

In our view, this was particularly important given Walyering’s limited life (we forecast production to end Dec-28 quarter for now) – with West Erregulla targeted online mid-CY29. The market seems to be under-appreciating the significance of this for now & it may take some time for institutional interest to return to STX.

Macquarie said that with the Hancock money and debt funding from Macquarie Bank, the company was adequately funded.

The broker has a price target of 15 cents on Strike shares compared to 11 cents currently.

Santos Ltd (ASX: STO)

Santos shares have performed well over the past year, up 24.4%, but the team at Macquarie thinks they have further to run.

The broker’s analysts said in their research note on the company that the third quarter will be a “watershed” period as Santos moves into the harvest phase after a long period of investment.

They added that the strong commodity pricing environment was providing a favourable earnings backdrop, with the disruption in the Middle East continuing.

Macquarie is forecasting earnings per share to be 40% higher for the calendar year, driven by higher realised prices and increased LNG shipments; however, they noted that their estimate was 31% above consensus.

Macquarie has an outperform rating on Santos shares and a price target of $9.35 compared to $8.58 currently.

Conversely, Macquarie has a neutral rating on Woodside Energy Group Ltd (ASX: WDS) and a price target of $32.40 compared to $31.77.

Santos is valued at $27.8 billion.

The post 2 ASX energy companies Macquarie says will outperform appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Codan Ltd (ASX: CDA) share price is on watch today, after the company posted a sharp boost in first-half profit and revenues, with the Communications segment delivering record results.

What did Codan report?

• Communications H1 FY27 revenue expected between $400 million and $410 million (up from $221.8 million in pcp)
• Group NPAT for H1 FY27 expected to be at least $160 million (vs. $71.2 million in pcp)
• EBIT margin for Communications segment estimated at 40% (up from 26% in pcp)
• Metal Detection (Minelab) tracking slightly above H2 FY26 revenue levels
• Strong demand from conflict regions, projected to represent 50% of Communications segment revenue

What else do investors need to know?

Demand for Codan’s Communications solutions has surged, particularly in conflict regions where its technology is trusted for reliability. The spike in this segment has led to significant operating leverage, pushing margins higher and contributing to a substantial jump in profit.

On the metal detection side, Minelab saw solid demand thanks to new product launches and robust gold prices, with revenue pacing ahead of recent periods. Across the company, Codan continues monitoring supply chain risks as incoming orders remain strong.

What’s next for Codan?

Looking ahead, Codan is targeting Communications segment revenue growth of 30–40% for full-year FY27, though management notes limited visibility for conflict region demand beyond the short term. The company will keep focusing on supply chain resilience and scaling up production as required.

While strong order momentum may persist, Codan remains cautious about forecasting second-half results, especially for its Communications business, due to the unpredictable nature of orders from conflict areas.

Codan share price snapshot

Over the past 12 months, Codan shares have risen 76%, outperforming the S&P/ASX 200 Index (ASX: XJO).

View Original Announcement

The post Codan trading update: Record H1 FY27 profit and revenue appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.