Penguin Solutions beats Q2 revenue estimates, lifts FY outlook

Penguin Solutions

01/04/2026 21:26

Overview

U.S. AI platform provider's Q2 revenue fell 6% yr/yr but beat analyst expectations

Adjusted EPS for Q2 matched prior year and beat analyst expectations

Company raised full-year net sales and EPS outlook, citing strong memory demand

Outlook

Penguin Solutions raises FY26 net sales outlook to 12% YoY Growth +/-5%, up, from 6% YoY Growth +/-10%

Company lifts FY26 non-GAAP diluted EPS guidance to $2.15 +/- $0.15 from $2.00 +/- $0.25

Company cites strong memory demand and disciplined execution as drivers for improved outlook

Result Drivers

MEMORY SEGMENT GROWTH - Integrated Memory sales rose sharply in Q2, offsetting declines in other segments

Company press release: ID:nBw45jx8Wa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted Revenue
Beat
$343 mln
$337.94 mln (8 Analysts)
Q2 Adjusted EPS
Beat
$0.52
$0.42 (8 Analysts)
Q2 EPS
$0.58
Q2 Adjusted Net Income
$34.1 mln
Q2 Adjusted Operating Income
Beat
$45.3 mln
$36.49 mln (8 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 $25.50, about 44.9% above its March 31 closing price of $17.60

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)