Penguin Solutions (PENG)
NASDAQ:PENG
Earnings Data
Report Date
Jul 14, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.52Last Year’s EPS
0.47Same Quarter Last Year
Strong Buy
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
Overall the call conveys a constructive and strategic pivot toward AI inference and memory solutions with strong demand and product momentum in the Integrated Memory business, raised full-year guidance, and meaningful new product launches and customer wins. However, material near-term challenges remain — notably a sharp decline in Advanced Computing revenue (driven by the Penguin Edge wind-down and lower hyperscaler sales), higher inventory and working capital needs, supply-chain and memory cost pressures, and an anticipated gross margin compression in H2. On balance, the positive developments (robust memory growth, upgraded guidance, product innovation and bookings momentum) outweigh the near-term headwinds, but execution on supply and timely conversion of bookings into revenue will be critical.Company Guidance
Raised Full-Year Guidance
Company raised full-year midpoint outlook to 12% net sales growth and $2.15 non-GAAP diluted EPS (up from prior 6% net sales growth and $2.00 EPS), reflecting stronger-than-expected results and an improved memory outlook.
Integrated Memory Revenue Surge
Integrated Memory net sales of $172M (50% of company net sales), up 63% year-over-year; company now expects Memory full-year growth of 65%–75% driven by strong demand and favorable pricing.
Product Innovation and New Offerings
Launched MemoryAI product line including CXL-based MemoryAI servers and MemoryAI KV Cache for LLM inference; continued development of Photonic Memory Appliance (PMA) and expanded OriginAI factory architectures, positioning the company for inference-centric AI deployments.
Customer Wins and Bookings Momentum
Strong non-hyperscale AI/HPC bookings growth in Q2 with 5 new AI/HPC logos (7 in first half vs 3 last year); notable deployments include Deepgram/Dell (enterprise voice AI), Georgia Tech AI Makerspace, and a Tier 1 financial institution buying CXL-powered KV Cache servers.
Improved Gross Margin and Sequential Margin Expansion
Q2 non-GAAP gross margin of 31.2%, up 0.4 percentage points year-over-year and up 1.2 points sequentially, driven by favorable memory pricing, product mix and tariff recovery in LED.
Solid Profitability and Cash Generation
Q2 non-GAAP diluted EPS $0.52 (flat YoY), adjusted EBITDA $50M (down 6% YoY but up 11% sequentially), operating income $45M; Q2 operating cash flow $55M and company closed quarter in a net cash position with $489M cash and short-term investments.
Strategic Partnerships and Leadership Strengthening
Continued partnerships with NVIDIA, Dell and others; appointed Ian Colle as SVP & Chief Product Officer to accelerate AI infrastructure and product roadmap.
Balance Sheet and Capital Allocation Actions
Used balance sheet to secure inventory and strategic purchases, received ~$32M proceeds from Celestial AI sale, repurchased ~$32M of stock (~1.7M shares) and reduced debt to $450M with no major maturities until 2029.
PENG Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
PENG Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 01, 2026 | $18.25 | $20.69 | +13.37% |
Jan 06, 2026 | $21.55 | $18.58 | -13.78% |
Oct 07, 2025 | $27.00 | $22.68 | -16.02% |
Jul 08, 2025 | $21.19 | $23.43 | +10.57% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Penguin Solutions (PENG) report earnings?
Penguin Solutions (PENG) is schdueled to report earning on Jul 14, 2026, After Close (Confirmed).
What is Penguin Solutions (PENG) earnings time?
Penguin Solutions (PENG) earnings time is at Jul 14, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is PENG EPS forecast?
PENG EPS forecast for the fiscal quarter 2026 (Q3) is 0.52.
