Goodman Group delivers Q1 FY26 update: data centre growth drives outlook

Goodman Group's Q1 FY26 update highlights strong growth in data centres and reaffirms a positive earnings outlook.

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Key points

  • Goodman Group reported $12.4 billion in development work in progress, with data centres accounting for 68% and reaffirmed a 9% operating EPS growth forecast for FY26.
  • The company is progressing with a $17.5 billion development pipeline, maintaining high occupancy (96.1%) and expanding capital for new data centre partnerships in Europe and Australia.
  • Goodman aims to enhance its data centre capacity in supply-constrained metropolitan markets, leveraging demand for AI and cloud infrastructure, with development activity expected to increase in the second half of FY26.

The Goodman Group (ASX: GMG) share price is in focus today after the company revealed strong Q1 FY26 operational results, including $12.4 billion of development work in progress and reaffirming its forecast for 9% operating EPS growth this year.

What did Goodman Group report?

  • Development work in progress reached $12.4 billion as at 30 September 2025
  • Data centres now account for 68% of total WIP
  • Annual net property income (NPI) growth of 4.2% across partnerships
  • Occupancy remains high at 96.1% across the portfolio
  • Total property portfolio increased to $85.9 billion
  • FY26 forecast operating EPS growth maintained at 9%

What else do investors need to know?

Goodman continues to advance its logistics and data centre development pipeline, with $17.5 billion in projected WIP by June 2026. The company's focus on supply-constrained metropolitan markets has helped maintain robust occupancy and rental growth, especially as demand for advanced infrastructure rises.

Around 40% of current development is pre-sold or being delivered for partners or third parties. Goodman is also raising additional capital for new data centre partnerships in Europe and Australia, expanding its global reach and partnership opportunities.

What did Goodman Group management say?

Greg Goodman, Group CEO, said:

Logistics customers are focused on significant capital investment in AI and robotic technology, to drive automation and productivity gains… Our sites are predominantly located in highly supply-constrained, metropolitan markets, where there's significant demand for power to service cloud customers. We're focused on speed to market, commencing construction, and activating sites to provide certainty of delivery. Goodman's strong liquidity position provides financial flexibility to support capital investment in our overall development program.

What's next for Goodman Group?

Goodman is targeting major data centre commencements in FY26, aiming to lift data centre WIP power capacity to approximately 0.5 GW by June 2026. The business expects development activity will be more heavily weighted to the second half and maintains its ambition for 9% operating EPS growth in FY26. Management sees continued strong enquiry in key market segments and plans to pursue large-scale sites to serve growing demand for cloud and AI infrastructure.

Goodman Group share price snapshot

Over the past 12 months, Goodman Group shares have declined 11%, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

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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 Goodman Group. The Motley Fool Australia has recommended Goodman Group. 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.

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