Penguin Solutions, Inc.: Beat — EPS $1.00, Revenue $566.69M
Earnings BeatQ4 2026 · After-market
@trystockwhiz
Did Penguin Solutions, Inc. (PENG) beat earnings today?
Yes, Penguin Solutions, Inc. (PENG) beat Wall Street analyst expectations for Q4 2026, reporting higher-than-expected EPS and higher-than-expected revenue.
Earnings Per Share+29.87% surprise
$1.00Actual
Expected: $0.77
vs. year ago +133.0%
Total Revenue+8.77% surprise
$566.68MActual
Expected: $520.99M
vs. year ago +68.0%
Released Oct 06 · 4:05 PM ET
Earning Report
| Metric | Q4 2026 | Q4 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $566.68M | $337.92M | +68.0% |
| └─Advanced Computing | $154.04M | $138.34M | +11.4% |
| └─Integrated Memory | $340.78M | $132.16M | +157.9% |
| └─Optimized LED | $71.86M | $67.43M | +6.6% |
| Net Income | $93.20M | $9.43M | +888.0% |
| GAAP Diluted EPS | $1.29 | $0.11 | +1073.0% |
| Non-GAAP Diluted EPS | $1.00 | $0.43 | +133.0% |
Financial Outlook / Guidance
| Metric | Next Quarter Outlook | FY27 Outlook |
|---|---|---|
| Net sales | — | ~$2.43B (+40% YoY ±10 percentage points, prev. $2.17B) |
| Gross margin | — | 27% ± 2% |
| Non-GAAP Gross margin | — | 28% ± 2% |
| Operating expenses | — | $329M ± $10M |
| Non-GAAP Operating expenses | — | $275M ± $10M |
| Diluted earnings per share | — | $3.50 ± $0.70 |
| Non-GAAP Diluted earnings per share | — | $4.45 ± $0.70 |
| Diluted shares | — | 63M |
Business Highlights
- ➤Won six new AI Infrastructure data center customers, including four neocloud providers.
- ➤Added seventeen new AI Infrastructure customers during fiscal 2026.
- ➤Twelve customers expanded their business with Penguin during fiscal 2026.
- ➤Won a South Korean technology-company-backed neocloud customer for an NVIDIA GB300 NVL72-based platform.
- ➤Won a publicly traded neocloud customer for deployment and 24x7 operations services using ClusterWareAI™.
- ➤Selected to deploy and operate a 36,000-GPU AI factory in Norway.
- ➤Lektra selected the AI Factory Platform for distributed AI micro data centers using carbon-free energy.
- ➤Advanced ClusterWareAI with self-managing agentic AI capabilities for GPU issue detection and remediation.
- ➤Continued investment in new CXL memory expansion products amid strengthening bookings.
- ➤Closed an oversubscribed $750 million convertible senior notes offering due 2031 with a 0% coupon.
- ➤Established an additional AI Infrastructure supplier relationship to improve component availability.
- ➤Established a new supply arrangement with a leading memory supplier for AI-driven data-center demand.
Management Commentary
Kash Shaikh, president and CEO
“Our company performance accelerated significantly in the second half of fiscal 2026 following the launch of our AI Factory Platform and increased focus on the data center market. We prioritized and aligned our AI Infrastructure and Memory businesses with strong AI-driven data center demand, increased investment in product innovation, and sharpened go-to-market execution with a focus on making neocloud and enterprise customers successful.”
Kash Shaikh, president and CEO
“The proof is in the results. After relatively flat year-over-year net sales in the first half, growth accelerated to 48% in Q3 and 68% in Q4, driving second-half growth of 58%. As we enter fiscal 2027, our memory business remains strong, and our AI Infrastructure business is accelerating further. Based on this continued momentum, particularly the strength in AI Infrastructure, we are increasing our fiscal 2027 expectations for both net sales and non-GAAP diluted EPS beyond the preliminary growth view shared during the third-quarter earnings call, as we continue to drive strong operating leverage across the business.”