Data center firm Penguin's Q1 adjusted revenue beats estimates

Penguin Solutions

06/01/2026 21:17

Overview

Tech solutions provider's fiscal Q1 adjusted revenue beat analyst expectations

Adjusted EPS for fiscal Q1 beat analyst expectations

Company agreed to divest remaining interest in Brazil memory module business

Outlook

Penguin Solutions expects fiscal year 2026 net sales to grow 6% YoY +/- 10%

Company projects fiscal year 2026 GAAP gross margin at 27% +/- 1%

Penguin Solutions anticipates fiscal year 2026 non-GAAP EPS of $2.00 +/- $0.25

Result Drivers

INTEGRATED MEMORY GROWTH - Integrated Memory segment sales increased significantly, contributing to overall revenue growth

AI MARKET SHIFT - Co sees a shift in AI market towards enterprise adoption and production-scale deployments, aligning with its strengths

OPERATIONAL EXCELLENCE - Co attributed solid Q1 results to operational excellence

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted Revenue
Beat
$343.07 mln
$338.64 mln (7 Analysts)
Q1 Adjusted EPS
Beat
$0.49
$0.44 (7 Analysts)
Q1 EPS
$0.04
Q1 Adjusted Net Income
$32.39 mln
Q1 Adjusted Operating Income
Beat
$41.53 mln
$37.97 mln (7 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the semiconductors peer group is "buy"

Wall Street's median 12-month price target for Penguin Solutions Inc is $26.50, about 25.8% above its January 5 closing price of $21.07

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw9QcSpba

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)