Penguin Solutions (NASDAQ:PENG) Posts Earnings Results, Beats Estimates By $0.09 EPS

Penguin Solutions (NASDAQ:PENG) announced its quarterly earnings results on Wednesday. The company reported $0.52 EPS for the quarter, beating the consensus estimate of $0.43 by $0.09, FiscalAI reports. The firm had revenue of $343.00 million for the quarter, compared to analyst estimates of $339.00 million. Penguin Solutions had a return on equity of 16.01% and a net margin of 1.82%.

Here are the key takeaways from Penguin Solutions’ conference call:

• Company raised full‑year outlook, now targeting 12% net sales growth and $2.15 non‑GAAP diluted EPS at the midpoint, citing strong Q2 results.
• Integrated Memory was a standout with Q2 net sales $172 million (+63% YoY) and a raised FY guide of 65%–75% growth driven largely by favorable pricing and strong AI‑driven demand, plus new CXL‑based Memory AI and KV cache products.
• Advanced Computing sales declined materially—Q2 net sales $116 million (down 42% YoY)—and full‑year guidance is now -25% to -15%, reflecting the wind‑down of Penguin Edge and no hyperscaler hardware sales, though non‑hyperscaler AI HPC bookings and new logos are improving the pipeline.
• Management is repositioning Penguin as an AI factory platform (six core elements including ClusterWare, Memory AI, OriginAI and services), adding Ian Colle as CPO and committing to increased product and software investments.
• Balance sheet remains healthy—ended Q2 with ~$489M cash and net cash position after debt of $450M, repurchased $32M of stock, but accounts receivable and inventory rose due to strategic memory purchases to support H2 demand.

Penguin Solutions Stock Up 3.7%

PENG traded up $0.65 on Wednesday, hitting $18.25. The company had a trading volume of 3,006,037 shares, compared to its average volume of 1,248,105. The stock has a market capitalization of $959.22 million, a price-to-earnings ratio of 79.35 and a beta of 2.19. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.86 and a current ratio of 2.33. The stock has a fifty day moving average price of $18.81 and a 200-day moving average price of $20.79. Penguin Solutions has a 12-month low of $14.20 and a 12-month high of $29.80.

Insider Activity

In other news, SVP Anne Kuykendall sold 4,000 shares of the firm’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $17.75, for a total value of $71,000.00. Following the sale, the senior vice president directly owned 131,352 shares in the company, valued at approximately $2,331,498. This trade represents a 2.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Joseph Gates Clark sold 1,346 shares of Penguin Solutions stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $19.03, for a total transaction of $25,614.38. Following the completion of the transaction, the senior vice president directly owned 122,318 shares in the company, valued at approximately $2,327,711.54. The trade was a 1.09% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Penguin Solutions

Institutional investors and hedge funds have recently bought and sold shares of the company. Dimensional Fund Advisors LP acquired a new position in shares of Penguin Solutions during the third quarter worth $60,264,000. Invesco Ltd. grew its stake in Penguin Solutions by 596.8% during the 4th quarter. Invesco Ltd. now owns 1,992,415 shares of the company’s stock worth $38,972,000 after buying an additional 1,706,482 shares during the last quarter. Ophir Asset Management Pty Ltd grew its stake in Penguin Solutions by 234.3% during the 4th quarter. Ophir Asset Management Pty Ltd now owns 1,211,612 shares of the company’s stock worth $23,699,000 after buying an additional 849,178 shares during the last quarter. Royal Bank of Canada acquired a new position in Penguin Solutions during the 1st quarter valued at about $7,250,000. Finally, Millennium Management LLC acquired a new position in Penguin Solutions during the 3rd quarter valued at about $10,136,000.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on PENG shares. The Goldman Sachs Group started coverage on shares of Penguin Solutions in a report on Tuesday, January 13th. They set a “buy” rating and a $25.00 target price on the stock. Rosenblatt Securities restated a “buy” rating and issued a $30.00 price target on shares of Penguin Solutions in a report on Monday. Wall Street Zen raised shares of Penguin Solutions from a “hold” rating to a “buy” rating in a research report on Saturday, February 21st. Needham & Company LLC reiterated a “buy” rating and set a $25.00 price objective on shares of Penguin Solutions in a research note on Tuesday, February 3rd. Finally, Weiss Ratings lowered shares of Penguin Solutions from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, March 11th. Six research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $28.00.

About Penguin Solutions

Penguin Solutions, Inc engages in the designing and development of enterprise solutions worldwide. It operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers dynamic random access memory modules, solid-state and flash storage, and other advanced integrated memory solutions for networking and telecom, data analytics, artificial intelligence and machine learning applications; and supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging services.