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Penguin Solutions, Inc.
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NASDAQ: PENG Technology Information Technology Services 🔎 Screen
$2.8B
Market Cap
86.2
P/E
0.50
PEG
4.9%
ROCE
5.7%
ROE
0.86
D/E
4.3%
OPM
-38.1%
% from 52W High
93
α RS
🔍 PENG is showing a momentum setup because RS Rating is 93 (top decile vs market) and it matches 2 of 37 tracked screener presets. Net: Partial signal stack, not a recommendation. ? RS Rating Conviction
Sources
RS Rating 93 · Conviction 2/37
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🌏 Global Investor Returns
Currency-adjusted total returns for PENG including FX impact
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📈 Price History
Ratio Health
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— Good
— Average
— Poor
By Category
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About

Penguin Solutions, Inc. designs, builds, deploys and manages enterprise solutions worldwide.

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📈 Growth Pattern
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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Mixed ↓ Deteriorating 4 quarters Full tone analysis in Intelligence →
📊 MIXED Penguin Solutions Q2 $343M revenue, 31.2% gross margin, raises FY outlook
Revenue & Profitability
Non-GAAP Q2 net sales: $343M, down 6% YoY. Non-GAAP gross margin: 31.2%, up 0.4 ppt YoY. Non-GAAP operating income: $45M, down 8% YoY. Non-GAAP diluted EPS: $0.52, flat YoY. Adjusted EBITDA: $50M, down 6% YoY. Cash and short-term investments: $489M; debt: $450M; net cash position. Full year FY2026 outlook raised: net sales growth midpoint 12% (from 6%), non-GAAP diluted EPS $2.15 (from $2.00).
Outlook
Management sees AI shifting from experimentation to production, with workloads moving toward real-time inference and agentic AI, expanding demand beyond hyperscale into enterprise, Neocloud, and Sovereign AI markets. Memory demand is becoming more durable due to AI, especially for inference and general-purpose memory. Headwinds include extended component lead times, supply chain constraints, and higher memory costs. Time to deployment is directly tied to time to first token. For FY2026, Advanced Computing net sales expected to decline -25% to -15% YoY; Memory to grow 65-75%; LED to decline -15% to -5%.
Growth Drivers
Key growth levers: non-hyperscale AI/HPC net sales grew 50% YoY in first half, representing over 40% of Advanced Computing segment (versus ~20% last year). Added seven new AI/HPC logos in first half (vs three last year). Integrated Memory growth driven by AI demand across telecom, networking, and computing, plus favorable pricing. New products: Memory AI KV cache server and expanded OriginAI portfolios. CXL-based memory solutions gaining traction, with a tier-one financial institution customer and a generative AI company order. Photonic Memory Appliance (PMA) under development.
Balance Sheet & CapEx
CapEx in Q2 was $2M; depreciation $5M. Management plans to increase investment in the AI factory platform, including R&D for ClusterWare software and Memory AI solutions. The company is using its balance sheet for strategic memory purchases to secure supply. No specific forward CapEx guidance was provided beyond modest sequential OpEx increases for R&D.
Margins
Non-GAAP gross margin in Q2 was 31.2%, up 0.4 ppt YoY and 1.2 ppt sequentially, driven by favorable product mix in Advanced Computing, memory pricing, and LED tariff recovery. Full year gross margin guidance lowered to 28% ±0.5 ppt due to higher mix of lower-margin memory and AI hardware sales, rising memory costs, and less tariff recovery. Non-GAAP operating margin was 13.2%, down 0.2 ppt YoY. Full year OpEx maintained at $250M ±$5M. Memory segment margins expected to remain healthy but face pressure in second half.
Key Risks
Risks flagged include: global macroeconomic environment, supply chain constraints, extended lead times for components (especially memory), higher memory costs potentially slowing customer demand, and the wind-down of the Penguin Edge business (high margin, impact of ~14 ppt on company net sales growth and ~30 ppt on Advanced Computing). Sales cycles in AI/HPC are long (12-18 months) causing quarterly revenue variability. Transition away from hyperscaler concentration may weigh on near-term growth.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q3 2026 Q3 2026 2026-07-07
Record Q3 results driven by AI demand led to raised FY 2026 outlook for net sales and EPS. Memory and non-hyperscale AI infrastructure segments saw exceptional growth, with strong backlog and favorable pricing. Preliminary FY 2027 guidance anticipates ~30% growth in sales and EPS.
Q2 2026 Q2 2026 2026-04-01
Q2 net sales were $343M, down 6% year-over-year, with strong 63% growth in the Memory segment driven by AI demand and favorable pricing. Full-year outlook was raised to 12% net sales growth and $2.15 EPS, while Advanced Computing faces a decline due to the Penguin Edge wind down.
Q1 2026 Q1 2026 2026-01-06
Q1 revenue grew 1% year over year to $343 million, with strong memory growth offsetting declines in advanced computing and LED. The outlook remains for 6% annual sales growth and $2 EPS, with second-half strength expected as enterprise AI deployments accelerate.
Q4 2025 Q4 2025 2025-10-07
Fiscal 2025 saw 17% revenue growth, 53% higher non-GAAP EPS, and major AI infrastructure wins, with strong momentum in non-hyperscale HPC AI and memory. FY 2026 guidance reflects a 14% headwind from business exits, but robust growth is expected in memory and diversified AI opportunities.
Q3 2025 Q3 2025 2025-07-08
Q3 saw 7.9% revenue growth and a 25% EPS increase, driven by strong memory demand and new customer wins. Full-year revenue guidance is reaffirmed at 17%, with EPS guidance raised to $1.80. Strategic investments and refinancing have strengthened the balance sheet.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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