Penguin Solutions, Inc.

PENG

$51.30

+5.49%

2026-09-04 12:10:35 EDT+$2.67

Technology

Semiconductors

NASDAQ

Active Trading

Penguin Solutions, Inc. is a global technology company focused on designing and delivering advanced enterprise solutions. Its business operations are segmented into ...

Price Action of PENG

$51.30

+5.49%+$2.67

High—

Low—

52W High-42.9%

Rel. vol—

Interval

Range6.5h

Volume—SMA5SMA10

—

Penguin Solutions, Inc. (NASDAQ: PENG), formerly SMART Global Holdings, Inc., is a global technology company that designs and delivers advanced enterprise solutions. Founded in 1988 and headquartered in Fremont, California, the company operates through three primary divisions: Advanced Computing, Integrated Memory, and Optimized LED. The Integrated Memory segment provides sophisticated ...Penguin Solutions, Inc. (NASDAQ: PENG), formerly SMART Global Holdings, Inc., is a global technology company that designs and delivers advanced enterprise solutions. Founded in 1988 and headquartered in Fremont, California, the company operates through three primary divisions: Advanced Computing, Integrated Memory, and Optimized LED. The Integrated Memory segment provides sophisticated memory solutions including DRAM modules, SSDs, and flash storage, targeting applications in networking, telecommunications, data analytics, and AI/ML. It also offers supply chain management services like procurement, logistics, and programming. The Advanced Computing division includes Penguin Computing, which delivers HPC and AI solutions for data centers and cloud environments; Penguin Edge for embedded and wireless applications in government, healthcare, and manufacturing; and the Stratus brand offering fault-tolerant computing for critical operations. The Optimized LED segment produces advanced LED components under the Cree LED brand, including blue and green gallium nitride chips and surface mount devices. The company serves OEMs, enterprises, and government entities through a multi-channel sales approach. With approximately 2,900 employees worldwide, Penguin Solutions has a market cap of around $2.99 billion, generating revenue with a gross margin of 27.9%. The company focuses on powering 'AI factories' for enterprises and sovereign AI initiatives, emphasizing accelerated computing and AI infrastructure. Under the leadership of CEO Kash Shaikh, who brings over 30 years of experience, the company aims to expand its OriginAI solution to accelerate AI factory deployments globally. Financially, Penguin Solutions shows a positive net profit margin of 6.4% and a return on equity of 17.4%, although it faces challenges with negative free cash flow. The company is positioned at the intersection of high-performance computing, memory, and photonics, driving innovation in AI infrastructure.ExpandCollapse

Founded

1988

Employees

2900

CEO

Kash Shaikh

Full Name

Penguin Solutions, Inc.

Sector

Technology

Industry

Semiconductors

ROE

17.37%

Market Cap

$2.63B

Current Ratio

1.54

WACC

14.83%

ROIC

10.66%

Contact Information

https://www.penguinsolutions.com

1-415-954-2800

45800 Northport Loop, Fremont, CA 94538

Key Metrics of PENG

Snapshot

Latest / TTM · 5 periods

Market Cap

$2.63B

ROCE

10.5%

EV / EBITDA

15.53x

+4.0% YoY

FCF Yield

-2.7%

-10.5% YoY

Cash Conversion Cycle

91.0d

Current Ratio

1.54

Quick take

TTM —

Positive CCC

Financial Highlights of PENG

Profitability trend

Latest / TTM · 5 periods

Gross Margin

27.9%

Net Margin

6.4%

P/E Ratio

33.13x

n/a

Debt / Equity

1.14

n/a

Current Ratio

1.54

Dividend Yield

0.0%

Understanding

TTM —

No major balance sheet stress in these headline ratios.

Calendar of PENG

Upcoming

Nov 29, 2026
Q1 FY2027 · Estimated results
Est. EPS $0.73 · Revenue $502.92M · 4 analysts
Feb 28, 2027
Q2 FY2027 · Estimated results
Est. EPS $0.80 · Revenue $527.88M · 2 analysts
May 29, 2027
Q3 FY2027 · Estimated results
Est. EPS $0.89 · Revenue $571.20M · 1 analysts
Aug 29, 2027
FY2027 · Estimated annual results
Est. EPS $3.36 · Revenue $2.14B · 3 analysts

Recent history

Jul 7, 2026
Q3 FY2026 · Results reported
EPS $0.68 · Revenue $478.71M
View filing
Apr 1, 2026
Q2 FY2026 · Results reported
EPS $0.58 · Revenue $343.00M
View filing
Jan 6, 2026
Q1 FY2026 · Results reported
EPS $0.04 · Revenue $343.07M
View filing
Oct 21, 2025
FY2025 · Annual results
EPS $0.28 · Revenue $1.37B
View filing
Jul 8, 2025
Q3 FY2025 · Results reported
EPS $-0.01 · Revenue $324.25M
View filing
Apr 2, 2025
Q2 FY2025 · Results reported
EPS $0.09 · Revenue $365.52M
View filing

Financial Statements of PENG

5Y Trend (Revenue, Earnings, FCF)

Metric	Latest	YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.	QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).	$1.4B	+16.9%	+39.6%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.	$21.6M	+141.1%	+19.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.	+28.8%	-1.7%	+1.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).	+5.4%	+246.9%	+41.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.	+1.6%	+135.2%	-14.5%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.	$100.1M	+73.3%	-245.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.	+7.3%	+48.2%	-204.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.	123.0%	-33.7%	+21.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.	2.25x	-15.2%	-26.4%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.	$1.6B	+9.7%	+25.2%

Actual vs Estimate

A Aug 29Q May 29

Metric	Annual (A vs E)	Annual Surprise	Quarter (A vs E)	Quarter Surprise
EPS Surprise	0.28 vs 1.84	-84.8%	0.68 vs 0.54	+26.1%
Revenue Surprise	$1.4B vs $1.4B	-0.3%	$478.7M vs $407.5M	+17.5%

Insider Transactions of PENG

Acquisitions (A)

Since Jul 9, 2026

Disposals (D)

Since Jul 9, 2026

Monthly shares of acquisitions/disposals with close price trend (shared daily price source)

Insider Trading Snapshot

Date	Executive	Title	Security	Side	Shares	Price
Aug 24, 2026	Kuykendall Anne	officer: SVP and Chief Legal Officer	Common Stock	D	600	$49.62
Aug 24, 2026	Kuykendall Anne	officer: SVP and Chief Legal Officer	Common Stock	D	3,300	$50.73
Aug 24, 2026	Kuykendall Anne	officer: SVP and Chief Legal Officer	Common Stock	D	100	$51.34
Jul 23, 2026	Clark Joseph Gates	officer: SVP and Pres, Optimized LED	Common Stock	D	1,327	$57.47
Jul 22, 2026	Kuykendall Anne	officer: SVP and Chief Legal Officer	Common Stock	D	739	$56.12

Earnings Call Transcript of PENG

1 transcript segments

Q3 2026

Unknown Speaker

Suzanne Schmidt: Thank you, operator. Good afternoon, and thank you for joining us on today's earnings conference call and webcast to discuss Penguin Solutions Third Quarter Fiscal 2026 results. On the call today are Kash Shaikh, Chief Executive Officer; and Nate Olmstead, Chief Financial Officer. You can find the accompanying slide presentation and press release for this call on the Investor Relations section of our website. We encourage you to go to the site throughout the quarter for the most current information on the company. I would also like to remind everyone to read the note on the use of forward-looking statements that is included in the press release and the earnings call presentation. Please note that during this conference call, the company will make projections and forward-looking statements, including, but not limited to, statements relating to statements about the company's growth trajectory, financial outlook and preliminary expectations for future fiscal periods, business plans and strategy, product development and innovation, market demand and shifts, supply chain conditions and cost assumptions, leadership transitions, strategic agreements and existing and potential collaborations. Forward-looking statements are based on current beliefs and assumptions and are not guarantees of future performance and are subject to risks and uncertainties, including, without limitation, the risks and uncertainties reflected in the press release and the earnings call presentation filed today as well as in the company's most recent annual and quarterly reports. The forward-looking statements are representative only as of the date they are made and except as required by applicable law, we assume no responsibility to publicly update or revise any forward-looking statements. We will also discuss both GAAP and non-GAAP financial measures. Non-GAAP measures should not be considered in isolation from, as a substitute for or superior to our GAAP results. We encourage you to consider all measures when analyzing our performance. A reconciliation of the GAAP to non-GAAP measures is included in today's press release and the accompanying slide presentation. And with that, let me now turn the call over to Kash Sheikh, CEO. Kash? Kash Shaikh: Good afternoon, and thank you for joining our third quarter fiscal 2026 earnings call. Penguin Solutions delivered an exceptional quarter with record results that reflect disciplined execution and strong customer traction for our AI factory platform strategy. At the company level, we delivered record net sales and significantly higher-than-anticipated EPS. Building on our excellent third quarter, we are again raising our full year outlook for both net sales and EPS. All of our business units performed well. Growth was outstanding in our AI-driven businesses. In Q3, our AI-driven businesses represented 74% of total company net sales and grew 104% year-over-year. These businesses consist of integrated memory and …

Leadership Team of PENG

11 executives

Name	Title	Compensation	Gender	Year Born	Status
Kash Shaikh	President, Chief Executive Officer & Director	USD 2,030,451	Male	—	Active
Nathan Olmstead	Senior Vice President & Chief Financial Officer	USD 916,571	Male	1972	Active
Joseph Clark	Senior Vice President & President of Optimized LED	USD 784,709	Male	1972	Active
Anne Kuykendall	Senior Vice President & Chief Legal Officer	USD 753,467	Female	1978	Active
Tony Frey	Senior Vice President & Chief Revenue Officer	USD 58,173	Male	—	Active
Srini Tanikella	Senior VP & Chief Information Officer	—	Male	—	Active
Aaron Johnson	VP of Finance & Accounting, Interim CFO and Principal Financial & Accounting Officer	—	Male	1979	Active
Mark Seamans	Senior Vice President of Global Marketing	—	Male	1967	Active
Philip Pokorny	Chief Technology Officer	—	Male	—	Active
Ted Gillick	Senior Vice President of Strategy & Corporate Development	—	Male	—	Active
Suzanne Schmidt	Head of Investor Relation	—	Female	—	Active

Recent News of PENG

Zacks Investment Research8/5/2026Neutral

Penguin Stock Slides 15% in a Month: Should You Buy the Dip?

PENG stock's decline reflects margin concerns, yet its AI Factory Platform, partnerships and improving outlook support future growth.

Seeking Alpha7/31/2026Neutral

Penguin Solutions: Record Q3 2026 Growth Supports A Higher Price Target

I am reiterating Penguin Solutions (PENG) as a Strong Buy rating with an revised price target of $119 post Q3 2026 results. PENG delivered record Q3 revenue of $479M (+48% y/y), non-GAAP operating income up 67%, and EPS up 79% to $0.84. The stock trades at 16.71x FWD non-GAAP earnings and 10.63x FWD EV/EBITDA, both below their sector medians despite faster revenue, EBITDA and EPS growth.

24/7 Wall Street7/29/2026Neutral

This NVIDIA Partner Is Already Up 123% in 2026, but Agentic AI Could Drive Its Next Growth Wave

Penguin Solutions CEO Kash Shaikh appeared on CNBC on July 29 with his thesis for the current AI cycle: “Memory is the new compute, especially with agentic AI.

Zacks Investment Research7/23/2026Neutral

Penguin's ClusterWareAI Expands: Is the Platform Strategy Paying Off?

PENG's ClusterWareAI is driving software and services growth as customers expand AI deployments across its full-stack platform.

Zacks Investment Research7/20/2026Neutral

PENG vs. DDOG: Which AI Infrastructure Stock Is the Better Buy Now?

Penguin's faster growth, AI infrastructure momentum and steep valuation discount make it the stronger buy over Datadog.

Historical Employee Count of PENG

Current

2,900

Change

+7.41%

Minimum

2,700

Maximum

3,600

Recent Filings

Report Date	Employees	Form Type	Filing Date	SEC Filing
Aug 29, 2025	2,900	10-K	Oct 21, 2025	View
Aug 30, 2024	2,700	10-K	Oct 24, 2024	View
Aug 25, 2023	3,000	10-K	Oct 20, 2023	View
Aug 26, 2022	3,600	10-K	Oct 14, 2022	View

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Penguin Solutions, Inc.