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Penguin Solutions (PENG)
NASDAQ:PENG
Earnings Data
Report Date
Apr 07, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.42Last Year’s EPS
0.52Same Quarter Last Year
Strong Buy
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a generally constructive picture: solid cash generation, margin expansion trend, strong and rapid growth in the Integrated Memory business, growing enterprise and sovereign AI pipeline, and disciplined expense management. Offsetting these positives are notable headwinds from the wind down of the high‑margin Penguin Edge business and absence of hyperscale hardware revenue this quarter, weakness in the LED segment (notably China), modest gross margin pressure and some working capital/timing risks tied to supply chain and new customer onboarding. Management reaffirmed full-year guidance while shifting mix assumptions and flagged second-half weighted sales, illustrating confidence in underlying demand but also acknowledging timing and supply constraints.Company Guidance
Revenue and Top-Line Performance
Total net sales of $343 million in Q1 FY2026, up 1% year-over-year (CEO noted +2% sequentially). Product net sales were $279 million (up 3% YoY) and services net sales were $65 million.
Strong Integrated Memory Growth
Integrated Memory revenue of $137 million (40% of company net sales), up 41% year-over-year and up 3% sequentially; management raised full-year memory net sales growth outlook to 20%–35%.
Advanced Computing Momentum (Excluding Penguin Edge/Hyperscale)
Advanced Computing reported $151 million in Q1 (44% of sales). While down 15% YoY on a reported basis, management stated that Advanced Computing net sales excluding Penguin Edge and hyperscale hardware grew 52% year-over-year, indicating healthy underlying enterprise demand and new customer bookings.
Improving Profitability and Margin Expansion Trend
Non-GAAP operating income of $42 million (up 1% YoY) and non-GAAP operating margin of 12.1% (up 0.1 ppt YoY). This marks the sixth consecutive quarter of year-over-year non-GAAP operating margin expansion.
Stable Non-GAAP Gross Margin
Non-GAAP gross margin of 30% in Q1, which management says compares favorably to the midpoint of the full-year outlook despite a modest YoY decline.
Earnings and Quarter-over-Quarter EPS Improvement
Non-GAAP diluted EPS of $0.49 in Q1, flat year-over-year and up 14% sequentially.
Strong Cash Generation and Balance Sheet
Cash, cash equivalents and short-term investments of $461 million (up $68 million YoY). Cash flow from operations of $31 million in Q1, an increase of 125% YoY. Share repurchases of $15 million (~791,000 shares) in the quarter with $96.5 million remaining authority.
Cost Discipline
Non-GAAP operating expenses of $61 million, down 4% year-over-year and down 6% sequentially, driven by lower personnel-related and subcontract services costs.
Customer Wins, Pipeline Growth and Strategic Initiatives
New customer bookings in defense and education, growing pipeline across financial services, oil & gas, telecom, manufacturing and sovereign cloud opportunities. Launched a rapid development workshop program and continued partnerships with NVIDIA, AMD, CDW and SKT; development work on ICE ClusterWare and optical memory appliance (OMA) underway.
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 |
|---|---|---|---|
Jan 06, 2026 | $21.55 | $18.58 | -13.78% |
Oct 07, 2025 | $27.00 | $22.68 | -16.00% |
Jul 08, 2025 | $21.19 | $23.43 | +10.57% |
Apr 02, 2025 | $18.05 | $16.19 | -10.30% |
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 Apr 07, 2026, After Close (Confirmed).
What is Penguin Solutions (PENG) earnings time?
Penguin Solutions (PENG) earnings time is at Apr 07, 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 (Q2) is 0.42.
