NEXTDC (ASX:NXT) shares surged on Friday after the data centre operator delivered full-year results broadly in line with expectations but unveiled guidance that reinforced confidence in its artificial intelligence (AI) and cloud growth trajectory.
The $10 billion market-cap stock climbed to A$16.48 by mid-afternoon, up about 17.3%, making it one of the ASX’s top movers. The rally came despite FY25 earnings being mixed, with the upbeat FY26 outlook and record customer demand providing the spark.
FY25 results
Total revenue for the year to June rose 6% to A$427.2 million, just shy of consensus forecasts. Underlying earnings (EBITDA) also gained 6% to A$216.7 million, within guidance and slightly above estimates. Net profit after tax was A$60.5 million, about 5% below market expectations.
Capital expenditure came in at A$1.7 billion, overshooting guidance of A$1.4–1.6 billion and well ahead of consensus forecasts. The company pointed to record contracted sales of 72.2 megawatts (MW) — including its first 10MW hyperscale order at KL1 Kuala Lumpur — and a forward order book of 134MW, equivalent to 121% of current billing utilisation.
“FY25 exceeded net revenue guidance and set new contracting records,” CEO Craig Scroggie said. “With a strong liquidity position, we are rapidly bringing capacity forward to turn contracted commitments into revenue and cash flow while scaling for extraordinary AI and cloud demand across Asia-Pacific.”
Guidance and market reaction
For FY26, NextDC forecast underlying EBITDA of A$230 million–240 million and net revenue of A$390 million–400 million. Capex is expected to rise further to A$1.8 billion–2.0 billion — around 10% above market consensus.
Despite heavier spending, analysts highlighted stronger-than-expected billing ramp, which is set to materially upgrade FY27 earnings estimates. Operating cash flow also jumped 73% year-on-year to A$223 million, beating estimates by 32%.
The combination of record sales, faster billing conversion and strategic capacity upgrades reassured investors that NextDC remains on track to capture surging AI and hyperscale demand.