Overview
- Penguin Solutions, which reported Wednesday, posted $343 million in sales, 31.2% non‑GAAP gross margin, and $0.52 in non‑GAAP EPS, topping Wall Street estimates.
- Management raised its fiscal 2026 outlook to roughly 12% sales growth with higher EPS guidance, signaling confidence in momentum through the year.
- A sharp mix shift took hold as Integrated Memory revenue rose 63% to about half of total sales while Advanced Computing fell 42% year over year.
- The company is repositioning as an “AI factory platform” for real‑time inference, adding five AI/HPC customers that include a Tier One bank using its MemoryAI CXL cache, a high‑speed link that lets servers pool memory.
- Following Thursday’s rally, shares were up about 11% to 14% as Needham and Rosenblatt raised price targets and Stifel kept a Buy rating.