IDP Education (IEL) and Megaport (MP1)/NEXTDC (NXT)
is IEL turning around to improve earning in 2026 ? which is a better buy NXT or MP1 ? Thanks.
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Answer
Hi John,
IDP Education (IEL): There’s a lot of bad news built into the IEL share price although it still feels a touch early to become overly bullish amid continued uncertainty on global immigration and trade policy. Their result last month was not good, but its wasn’t as bad as some feared:
- NPAT fell 64% to $45.5mn with revenue from Australian placements down 19%.
- For FY26 IEL are forecasting revenue up +11% and EPS up +25%.
This was enough to send the stock up strongly on the day but it’s still down 55% year-to-date. So, in essence yes, earnings are set to improve but it’s still a high-risk stock.
NEXTDC (NXT) and Megaport (MP1) are different businesses in the tech space:
- NXT is an Australian data center operator offering secure, cloud-connected infrastructure for businesses.
- MP1 provides fast, flexible internet connections between businesses, cloud providers, and data centers—using software instead of traditional hardware.
At current levels we prefer NXT after its solid report last month which saw exciting upgrades for FY26 and especially FY27 with incremental AI workload deployments.
