Megaport Ltd (ASX: MP1) shares are flying higher in early morning trade on Thursday after the company posted its FY26 results.
At the time of writing, the shares have climbed around 8% to a fresh all-time high of $21.96 each.
Today's increase means the shares are now up around 83% for the year to date and 52% higher than 12 months ago.
The update comes as Megaport posted a huge 37% increase in revenue, a 24% increase in EBITDA, and a 62% hike in group annual recurring revenue for FY26. Megaport's revenue figures came in at the high end of its upgraded guidance.
Clearly, investors are pleased with the financial update, and many are rushing to snap up the company's shares this morning while they're still trading for cheap.
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Megaport shares have rallied higher in 2026
The ASX tech shares have enjoyed an incredible rally over the past four months. Megaport shares rebounded strongly in May thanks to a run of good-news announcements and a reversal of investor sentiment.
The software-defined network (SDN) service provider has confirmed several new contracts since late-April, including a three-year compute and storage contract with a total contract value (TCV) of approximately US$25.1 million (A$35.4 million), and three additional binding contracts with two US AI customers, worth a TCV of approximately US$183 million and annualised recurring revenue (ARR) of approximately US$65 million.
In early June, Megaport went into a trading halt ahead of the launch of a new fully underwritten $827.3 million entitlement offer. The company completed the institutional component of the offer, priced at $14.30 per share, on the 5th of June.
Today's bumper FY26 results and run of contract wins confirm that the business is on track for growth.
But now the question is, can Megaport shares keep climbing higher? Or have they reached fair value?
Here's what the experts think.
Here's what brokers tip for the ASX tech shares over the next 12 months
We might see brokers and analysts revise their outlooks on Megaport shares in the coming days, following today's results announcement.
But at the time of writing, brokers are very bullish about where the shares could travel to next.
Market Index data show that all brokers agree on a buy rating for Megaport shares. The $24.42 average target price implies a potential 11% upside, at the time of writing.
According to TradingView data, the majority of analysts (14 out of 16) have a buy/strong buy rating on the ASX tech shares.
The average $23.29 target price implies a potential 6% upside at the time of writing. However, some are even more bullish and tip the shares to increase up to 39% to $30.55 over the next 12 months.
Macquarie recently said it is impressed with the company's latest contract wins. The broker said Megaport provides AI exposure for investors with shorter lead times and less capital expenditure than data centre operators. It has a buy rating and a $27.80 price target for the shares.
