GoKawiilNextDC stock falls 40% after cutting FY2027 revenue and earnings guidance
NextDC shares dropped 39.5% after the Australian data center operator cut its fiscal 2027 revenue forecast to A$475-500 million from A$615-640 million, and lowered EBITDA guidance to A$245-265 million from A$385-410 million. The company blamed delays in power infrastructure upgrades at its M3 Melbourne facility, where electricity distributor Jemena suspended work due to community opposition and lack of council consent, with resumption not expected before February 2027.
GoKawiil's interpretation of the reporting above, not reported fact.
The sharp guidance cut highlights how local community opposition and regulatory consultation processes can directly disrupt data center expansion timelines, a risk factor not always priced into fast-growing infrastructure firms. Citi's note suggesting the delays could extend beyond fiscal 2027 implies investors may need to recalibrate expectations for NextDC's broader growth trajectory, not just this year's results.
- NextDC shares plunged 39.5% following a major earnings downgrade.
- Power upgrade delays at the M3 Melbourne facility, driven by community and council pushback, are the stated cause.
- Analysts at Citi warn the impact on earnings could extend past fiscal 2027.
Source: cnbc.com — Jenny Lee, 2026-10-21
Published there as: “Australian data center operator NextDC's shares plunge 40% after it slashes earnings forecast”
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