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 | $226.53M |
| Operating Margin | 12.30% |
| Return on Equity | 27.60% |
| Return on Assets | 5.02% |
| Revenue/Share (TTM) | $32.70 |
| Book Value | $9.36 |
| Price-to-Book | 6.29 |
| Price-to-Sales (TTM) | 1.69 |
| EV/Revenue | 2.014 |
| EV/EBITDA | 17.14 |
| Quarterly Earnings Growth (YoY) | 1189.00% |
| Quarterly Revenue Growth (YoY) | 67.70% |
| Shares Outstanding | $51.24M |
| Float | $53.88M |
| % Insiders | 3.54% |
| % Institutions | 123.71% |
Volatility is currently expanding
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.
Penguin Solutions is a specialized, rack-scale original equipment provider (OEM) and AI factory architect solving the memory bottleneck. While it leans heavily on existing technologies, such as NVIDIA's NASDAQ: NVDA InfiniBand and Dell's NYSE: DELL Ethernet fabrics, it ties it all together with a full stack of custom hardware and software.
Penguin Solutions (NASDAQ:PENG) shares were up over 15% at $73.88 on Wednesday morning after the artificial intelligence (AI) infrastructure company reported record fourth-quarter results and raised its fiscal 2027 outlook. The company reported fourth-quarter revenue of $567 million, up 68% from a year earlier, while operating income rose 458% to $69 million.
Penguin Solutions raises fiscal 2027 outlook as stronger AI infrastructure bookings, neocloud demand and memory backlog support its next growth phase.
Shares of Penguin Solutions, Inc. (NYSE:PENG) rose sharply in pre-market trading after the company reported better-than-expected fourth-quarter financial results and issued FY27 EPS guidance above estimates. The company appointed Stephen Cumming as CFO.
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