Nextdc’s Revenue Cut Triggers Sharp Decline in Share Price

NEXTDC Ltd. (NXT.AX) announced a significant revision to its fiscal‑2027 revenue and EBITDA forecasts, citing delays in power delivery at its Melbourne M3 data‑centre project. The company’s guidance was trimmed by roughly one‑third, a move that sent the share price tumbling more than 40 % on the Australian Securities Exchange.

Market Reaction

During the 24‑hour period ending at 10:00 PM Central Europe on Thursday 22 October 2026, Nextdc stock traded down 41.72 %, settling at approximately AUD 5.60. The company’s market capitalisation fell to AUD 7 billion, with a trading volume of AUD 248.3 million over the last day. Since the end of the previous month, Nextdc shares have declined 53.07 %, underscoring the severity of the market’s reaction.

The 200‑day simple moving average now sits at AUD 13.27, well above the current trading level. Historically, Nextdc’s price range has been wide: the 52‑week high reached AUD 16.78 on 06 March 2026, while the low fell to AUD 5.07 on 21 October 2026.

Underlying Factors

The revised outlook stems from power delivery delays at the Melbourne M3 data‑centre. Power reliability is a critical component for data‑centre operators; any disruption can erode customer confidence and delay revenue recognition. The announcement highlighted that the delay had materialised earlier than anticipated, compelling NEXTDC to adjust its revenue projections for the fiscal year.

Investor Perspective

Analysts noted that the market had already priced in a portion of the risk, yet the sell‑off was considered “over‑done,” presenting a temporary buying opportunity for investors who view the current valuation as attractive relative to the company’s fundamentals. The broader data‑centre sector has been experiencing volatility, with several operators revising guidance in response to supply‑chain disruptions and the escalating costs associated with AI‑driven infrastructure. These developments reinforce the sensitivity of data‑centre equities to external shocks and regulatory uncertainties.

Context within the Broader Market

Other Australian-listed companies have posted mixed performance in the past 24 hours:

  • Telecom (TPG.AX) – up 1.31 %, trading at AUD 3.88. Market cap AUD 7.5 bn, P/E 134.49.
  • Cleanaway Waste Management L (CWY.AX) – up 0.33 %, trading at AUD 3.00. Market cap AUD 6.7 bn, P/E 68.07. The company recently approved executive remuneration and governance measures at its AGM and is under discussion for a takeover bid by EQT.
  • Dyno Nobel (DNL.AX) – down 0.5 %, trading at AUD 3.96. Market cap AUD 7 bn, P/E 28.38. The firm is a minor holding within Kapstream Investment Trust.
  • Perseus Mining (PRU.AX) – down 2.31 %, trading at AUD 5.78. Market cap AUD 8 bn, P/E 14.35.
  • Jb Hi‑fi (JBH.AX) – down 0.45 %, trading at AUD 71.67. Market cap AUD 8 bn, P/E 16.21.

These movements illustrate a broader pattern of volatility across sectors, with data‑centre and infrastructure stocks particularly susceptible to macro‑economic pressures and operational delays.

About Nextdc

NEXTDC Ltd. specializes in the development and operation of carrier‑grade and systems‑integrator neutral data centres across Australia. The company’s facilities serve as connectivity and content hubs for its customers, offering high‑performance, secure, and scalable infrastructure solutions. With a current supply of 1.3 billion shares and an established presence in key Australian markets, NEXTDC remains a significant player in the nation’s digital backbone.