NextDC Ltd (ASX: NXT) shares are sliding today.
Shares in the S&P/ASX 200 Index (ASX: XJO) data centre operator and developer closed yesterday trading for $11.71. In morning trade on Tuesday, shares are changing hands for $11.51 apiece, down 1.7%.
For some context, the ASX 200 is down 0.5% at this same time.
Taking a step back, the ASX tech stock has also trailed the benchmark index over the last full year, falling 32.2% compared to the 1.7% one-year decline posted by the ASX 200.
Looking ahead, however, Shaw and Partners' James Bills believes that NextDC shares are well positioned for "attractive" long-term growth (courtesy of The Bull).
Here's why.
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Should I buy NextDC shares today?
Citing the first reason he's bullish on the ASX 200 tech stock, Bills said, "The company continues to benefit from strong demand for data centre infrastructure, driven by cloud computing, artificial intelligence and increasing digitalisation across the economy."
Then there's the company's fast-growing capacity.
"NXT is expanding capacity across key Australian markets and maintains a strong development pipeline to support future growth," Bills said.
And summarising the third reason he issued a buy recommendation on NextDC shares, Bills concluded:
While investment spending remains elevated, management continues to secure long-term customer contracts that provide earnings visibility. With structural growth tailwinds expected to persist for many years, NXT remains well positioned to deliver attractive long-term shareholder returns.
What's the latest from the ASX 200 tech stock?
NextDC reported its full-year FY 2026 results after market close on 27 August.
Highlights included a 16% year-on-year increase in revenue to $496.5 million.
And, as Bills mentioned above, investment spending indeed remains elevated. In FY 2026, NextDC reported all-time high capital expenditure of $3.397 billion.
On the bottom line, the company achieved a statutory net profit after tax (NPAT) of $82.1 million, up from a $60.5 million net loss the prior year.
Looking at what could impact NextDC shares in FY 2027 ahead, the company forecasts net revenue between $615 million and $640 million. On the higher end, that would represent growth of 29% from FY 2026 revenue.
Commenting on the company's performance, NextDC CEO Craig Scroggie said:
FY26 was the largest contracting year in NEXTDC's history. Contracted utilisation tripled to 740.1MW on a pro forma basis, and we exceeded guidance on both net revenue and Underlying EBITDA.
Our Forward Order Book of 565MW is now more than 3.2 times our billing utilisation, and our focus is on delivering that capacity and converting it into revenue and cash inflow.
NextDC shares closed up 2.1% on the first trading day following the results release.
