Shares in NextDC (NXT) surged in today’s trade after the release of its full-year earnings and guidance for 2025–26. According to Morgans research analyst Nick Harris, the results, which were unveiled after market close on Thursday, were broadly in line with expectations. NextDC specialises in data centre solutions, providing infrastructure and services to businesses needing secure and scalable data storage. The company aims to enable organisations to harness the power of digital transformation.
The group reported a 6 per cent increase in underlying earnings, reaching the upper end of its guidance. Net revenue slightly exceeded the top end of guidance by $0.2 million. Capital expenditure (capex) for the year was slightly above the projected figures. Looking forward, NextDC anticipates underlying earnings of $235–240 million. The midpoint of this guidance aligns with consensus estimates and is 3 per cent above Morgans’ forecast.
The projected capex is expected to reach $1.9 billion at the midpoint, which is 14 per cent above consensus estimates but in line with Morgans’ estimates. Harris noted that the guidance implies an 8 per cent increase in full-year earnings, representing a slight acceleration from the 6 per cent growth observed in the past year. Net revenue is expected to maintain mid-double-digit growth, supported by additional investments in growth projects.
Harris highlighted that NextDC is well-positioned to capitalise on structural growth within the data centre sector, driven by increasing business digitisation, the expansion of cloud computing, and the emergence of generative AI technologies.
