Penguin Solutions, Inc., a memory-focused company, engages in the designing and development of enterprise solutions in the United States, China, Europe, and internationally. The company is headquartered in Grand Cayman, Cayman Islands.
| Revenue (TTM) | $1.73B |
| Gross Profit (TTM) | $478.44M |
| EBITDA | $228.44M |
| Operating Margin | 13.40% |
| Return on Equity | 27.60% |
| Return on Assets | 5.07% |
| Revenue/Share (TTM) | $32.70 |
| Book Value | $8.65 |
| Price-to-Book | 2.63 |
| Price-to-Sales (TTM) | 1.24 |
| EV/Revenue | 1.216 |
| EV/EBITDA | 10.40 |
| Quarterly Earnings Growth (YoY) | 1188.00% |
| Quarterly Revenue Growth (YoY) | 67.70% |
| Shares Outstanding | $51.24M |
| Float | $58.58M |
| % Insiders | 2.97% |
| % Institutions | 99.66% |
Volatility is currently expanding
Penguin Solutions' CXL products serve a key role in AI data centers by ensuring that GPUs have access to the memory capacity they require. The company's integrated memory segment is growing rapidly, and as it becomes a larger part of total sales, Penguin Solutions' revenue growth rate could accelerate.
Investors interested in stocks from the Internet - Software sector have probably already heard of Penguin Solutions, Inc. (PENG) and F5 Networks (FFIV). But which of these two stocks presents investors with the better value opportunity right now?
Penguin Solutions' CXL memory products solve a critical problem and may become necessary for most AI racks. Sandisk's memory products are growing at a faster rate than Micron's.
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The consensus price target hints at a 26.7% upside potential for Penguin Solutions, Inc. (PENG). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
Penguin Solutions beat Q4 expectations, but cash flows were weak, and the memory cycle may be topping. PENG's core advanced computing and LED divisions declined in FY'26, while memory sales—highly cyclical and low-margin—drove recent results. Cash flow sharply deteriorated in Q4, with $163M burn and mounting inventories, raising risk if AI demand slows.
DRAM prices have surged nearly fivefold in some markets, and Micron's CEO expects conditions to get even tighter through 2028.
Penguin Solutions, Inc. (PENG) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Penguin Solutions is rated Buy, driven by strong AI data center and memory segment growth, with a forward P/E of 15.9x for FY2027. FY2026 revenue rose 68% to $567M in Q4 and 26% for the year, but growth is heavily reliant on cyclical memory activities. Advanced Computing and software initiatives like ClusterWareAI are expanding, with long-term contracts and new AI infrastructure customers supporting future growth.
Bank of America (BofA) has initiated coverage of Penguin Solutions (NASDAQ: PENG), a memory and AI infrastructure supplier, with a 'Buy' rating and a $100 price objective. The target equals 18 times the bank's forecast 2028 earnings per share of $5.43.
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