Megaport Ltd's stock surged 24.21% during intraday trading on Thursday, following the announcement that its unit Latitude.sh has secured three significant infrastructure contracts.

The contracts, with two US-based technology customers running AI applications, have a combined total contract value of approximately AU$254 million and are expected to generate annualized recurring revenue of about AU$90.6 million. Two contracts, covering roughly 90% of the total value, have 36-month initial terms, while the third has a 24-month term.

Megaport also reaffirmed its fiscal year 2026 revenue and EBITDA guidance for the combined group, providing further confidence to investors. The company indicated the contracts require incremental capital expenditure with an attractive payback period of approximately two years, to be funded through existing cash reserves and a newly upsized debt facility.