Penguin Solutions, Inc. (PENG) Market Cap
Penguin Solutions, Inc. has a market capitalization of $3.40B.
Price: $64.72
▼ -2.24 (-3.35%)
Market Cap: 3.40B
NASDAQ · time unavailable
CEO: Kash Shaikh
Sector: Technology
Industry: Hardware, Equipment & Parts
IPO Date: 2017-05-24
Website: https://www.penguinsolutions.com
Penguin Solutions, Inc. (PENG) - Company Information
Market Cap: 3.40B|Sector: Technology
Company Profile
Penguin Solutions, Inc. is a global technology company focused on designing and delivering advanced enterprise solutions. Its business operations are segmented into three primary divisions: Advanced Computing, Integrated Memory, and Optimized LED. Within its Integrated Memory segment, the company supplies sophisticated memory solutions, including dynamic random access memory (DRAM) modules, solid-state drives (SSDs), and flash storage. These offerings cater to demanding applications in networking, telecommunications, data analytics, and artificial intelligence/machine learning. This segment also provides comprehensive supply chain management services, encompassing procurement, logistics, inventory control, temporary warehousing, programming, kitting, and packaging. The Advanced Computing division features several key product lines. Penguin Computing delivers specialized technical computing for core data centers and cloud environments, focusing on high-performance computing (HPC) and AI solutions. Penguin Edge offers robust edge computing tailored for embedded and wireless applications, serving critical sectors such as government, healthcare, manufacturing, and telecommunications. Moreover, the Stratus brand provides inherently fault-tolerant computing solutions—combining hardware and software—that are simplified, protected, and autonomous for both data center and edge deployments, supporting industries like education, energy, financial services, government, hyperscale, and manufacturing. The Optimized LED segment produces advanced LED components under the Cree LED brand, including blue and green gallium nitride-based LED chips and associated materials. It also manufactures surface mount devices (SMDs) under the Cree LED XLamp and J Series brands. Penguin Solutions reaches its diverse clientele, which includes original equipment manufacturers (OEMs), enterprise clients, government entities, and other end-users, through a multi-channel sales approach. This includes a direct sales force, e-commerce platforms, customer service teams, on-site field application engineers, independent sales representatives, distributors, integrators, and resellers. Founded in 1988 and headquartered in Grand Cayman, Cayman Islands, the company will officially adopt the name Penguin Solutions, Inc. in October 2024, having previously operated as SMART Global Holdings, Inc.
Analyst Sentiment
From 8 Active Polls
1Y Forecast: $45.50
▼ -29.7% Potential Upside
Consensus Target Metrics
Low Bound
$25
Median
$46
High Bound
$66
Average
$46
Price & Moving Averages
🎯 Wall Street Analyst Intelligence Report
1-Year structural target targets, chart projections, and sentiment maps.
Consensus Trend Projection
Trailing closures vs. 12-month metrics map.
Analyst Vote Distribution
Aggregate institutional coverage sentiment weights.
📊 Historical Valuation Multiples
Real-time Trailing Twelve Month (TTM) momentum side-by-side with discrete quarterly metrics.
| Fiscal Quarter | TTM | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|---|---|---|---|---|
| Period Ending | Trailing 12M | Feb 27, 2026 | Nov 28, 2025 | Aug 29, 2025 | May 30, 2025 | Feb 28, 2025 | Nov 29, 2024 | Aug 30, 2024 | May 31, 2024 |
| Market Cap ($M) | 3,402 | 1,086 | 1,070 | 1,268 | 944 | 1,065 | 970 | 1,024 | 1,015 |
| Enterprise Value ($M) | 3,477 | 1,162 | 1,132 | 1,547 | 957 | 1,159 | 1,317 | 1,367 | 1,290 |
| Price to Earnings Ratio (P/E) | 88.55 | 8.81 | 133.44 | 54.84 | -634.29 | 53.29 | 46.51 | -10.49 | 43.86 |
| Price/Earnings-to-Growth Ratio (PEG) | — | — | 87.58 | 13.01 | — | 7.44 | 4.83 | -2.98 | 7.93 |
| Price to Sales Ratio (P/S) | 2.52 | 3.17 | 3.12 | 3.75 | 2.91 | 2.91 | 2.84 | 3.29 | 3.38 |
| Price to Book Ratio (P/B) | 5.66 | 1.82 | 1.81 | 2.13 | 1.61 | 1.77 | 2.42 | 2.62 | 2.40 |
| Price to Free Cash Flow Ratio (P/FCF) | 32.39 | 20.36 | 37.94 | -18.04 | 10.06 | 15.10 | 80.96 | -50.22 | 13.35 |
| Enterprise Value to Sales (EV/Sales) | — | 3.39 | 3.30 | 4.58 | 2.95 | 3.17 | 3.86 | 4.39 | 4.29 |
| Enterprise Value to EBITDA (EV/EBITDA) | 28.28 | 17.49 | 54.64 | 147.10 | 37.84 | 35.41 | 41.56 | 427.06 | 48.48 |
| Debt to Equity Ratio | 0.61 | 0.94 | 0.88 | 1.23 | 1.24 | 1.19 | 1.79 | 1.85 | 1.72 |
⚡ PENG Growth Runway Model
Standard long term linear growth fadeMulti-Stage Discounted Cash Flow Sandbox
Growth runway slowdown
This value provides a time window for the growth rate to decline beyond Stage 1 toward the terminal rate. Longer windows are most useful for companies with high growth starting conditions or strong competitive advantages. This option stretches out the growth rate slowdown across 5, 10, or 15-year steps. A high-growth starting condition (exceeding a 25% initial growth rate) automatically applies a curve decay to simulate realistic, rapid market saturation.Terminal growth rate
With long-term inflation between 3-5%, revenue must grow by that baseline to maintain flat real-world market share. This value sets the permanent terminal growth rate to factor into the valuation beyond the growth slowdown runway toward maturity.3-Stage Financial Runway Horizon
🧠 Perpetuity Horizon Engine (Stage 3: Post-2035)
📘 Full Research Report
AI-Generated Research: This report is for informational purposes only.
📰 Market News & Coverage
15 Stories AvailableReal-time institutional reporting and market updates for PENG.
Can Penguin's AI Factory Platform Strategy Unlock Long-Term Growth?
PENG's AI Factory Platform is gaining traction with MemoryAI, new customers and partner recognition as management raises its fiscal 2026 sales outlook.
Why Penguin Solutions Is Rallying as AI Data Centers Scale
Penguin Solutions NASDAQ: PENG is no newcomer to tech, data centers or AI, but it is only now, with the AI boom years in the making, that its stock price is rallying.
Penguin Solutions Becomes an NVIDIA AI Factory Specialized Partner
FREMONT, Calif.--(BUSINESS WIRE)---- $PENG #AI--Penguin Solutions announced it is an NVIDIA AI Factory Specialized Partner, joining a select group of NVIDIA Partner Network (NPN) solution providers.
Why Penguin Solutions Is Rallying as AI Data Centers Scale
Penguin Solutions NASDAQ: PENG is no newcomer to tech, data centers or AI, but it is only now, with the AI boom years in the making, that its stock price is rallying.
Oracle vs. Penguin Solutions: Which AI Data Center Stock Is a Buy?
PENG tops ORCL in this AI infrastructure faceoff, backed by AI/HPC momentum, memory growth and lower capital intensity.
Is Penguin Solutions the Next Big AI Stock?
Penguin Solutions is deeply ingrained in the memory industry and is phasing out of other business opportunities. The company's integrated memory segment is the most important contributor to its financial results, and it is trending in the right direction.
Penguin Solutions Announces Third Quarter Fiscal 2026 Conference Call
FREMONT, Calif.--(BUSINESS WIRE)---- $PENG #AI--Penguin Solutions announced its quarterly financial webcast and conference call for Q3 FY2026 earnings after market close on Tues July 7 at 1:30 pm PT.
Penguin Solutions, Inc. (PENG) is a Great Momentum Stock: Should You Buy?
Does Penguin Solutions, Inc. (PENG) have what it takes to be a top stock pick for momentum investors? Let's find out.
Will PENG's Diversifying AI Customer Base Improve Revenue Visibility?
Penguin's expanding AI customer base and AI Factory Platform are boosting revenue visibility as enterprise AI deployments scale globally.
Penguin Solutions: AI Inference, Memory Demand And A Strong Buy Rating
I am rating Penguin Solutions a strong buy because AI inference needs more memory, better system architecture, and more deployment support, and PENG is positioned directly in that bottleneck. The main growth drivers are Integrated Memory, Advanced Computing recovery, MemoryAI, CXL, and AI Factory deployments. My $108 price target is based on applying a 31.05x FWD non-GAAP P/E multiple to my 2027 est. EPS of $3.51. At a price of $68.88, that implies 58% upside potential.
Why Penguin Solutions, Inc. (PENG) Might be Well Poised for a Surge
Penguin Solutions, Inc. (PENG) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
PENG's Integrated Memory Segment Rises: Can It Drive Long-Term Growth?
Penguin Solutions' Integrated Memory segment posts 63% revenue growth as AI inference demand boosts memory needs and drives adoption of MemoryAI solutions.
Penguin Solutions Recognized as Dell Technologies Global Alliances Americas AI Partner of the Year
FREMONT, Calif.--(BUSINESS WIRE)---- $PENG #AI--Penguin Solutions received the 2026 Dell Technologies AI Partner of the Year Award during the Global Partner Alliance event at Dell Technologies World.
Penguin Solutions, Inc. (PENG) Moves 18.3% Higher: Will This Strength Last?
Penguin Solutions, Inc. (PENG) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
Cree LED Introduces XLamp XE-B LEDs for Directional Lighting Applications, Delivering High Intensity and Design Flexibility in an Ultra-Compact Package
DURHAM, N.C.--(BUSINESS WIRE)---- $PENG #CreeLED--Cree LED announced its new XLamp XE-B LEDs extending the XLamp Element family into a small form factor to enable new levels of design and performance.
Related Companies in Technology
📊 AI Financial Analysis
Powered by StockMarketInfo"PENG reported quarterly revenue of $343.0M and net income of $37.5M, translating to an estimated net margin of ~10.9%. Free cash flow (FCF) was $54.95M on capex of $2.85M, indicating strong cash conversion for the quarter. Operating cash flow of $54.95M was essentially equal to FCF, suggesting limited reinvestment needs during the period. Profitability appears solid at the bottom line, but EPS is shown as 0 in the provided dataset, limiting direct tracking of per-share earnings momentum. On the balance sheet, total assets were ~$1.75B versus total liabilities of ~$1.14B, leaving equity of ~$0.41B. Net debt is modest at ~$14.4M, which supports financial resilience. From a shareholder-return perspective, the stock’s 1-year gain is +5.67% while the dividend footprint appears small (dividends paid of ~$3.07M in the quarter). With no buyback data provided, total shareholder value creation is driven primarily by price performance rather than capital returns. Valuation context is limited because P/E and FCF yield were not supplied; however, the consensus analyst target of $28 vs. the $18.25 price implies expectations for improvement. Overall, cash generation and balance sheet leverage look supportive, while market performance has been volatile (notably -32.58% over 6 months)."
Revenue Growth
Only a single quarter’s revenue level is provided ($343.0M) with no YoY/sequence growth rate or driver detail, making growth durability difficult to assess. Market performance shows weakness over 6 months (-32.58%), suggesting operating expectations may have been pressured.
Profitability
Net margin is estimated at ~10.9% ($37.5M net income on $343.0M revenue), indicating decent profitability. EPS is shown as 0 in the data, so per-share trend and operating leverage cannot be validated here.
Cash Flow Quality
Strong cash conversion: operating cash flow and free cash flow both equal ~$54.95M, while capex is low ($2.85M). This suggests quality earnings in cash terms for the quarter. Dividends paid are comparatively smaller at ~$3.07M.
Leverage & Balance Sheet
Balance sheet leverage appears modest: net debt is only ~$14.4M against equity of ~$0.41B. Total assets (~$1.75B) exceed liabilities (~$1.14B), supporting resilience and reducing refinancing risk.
Shareholder Returns
Total shareholder returns are not strongly evident from the provided data: the stock is up only +5.67% over 1 year and down materially over 6 months (-32.58%) and YTD (-10.01%). Dividend outflows are present but relatively small in the quarter, and no buybacks are provided.
Analyst Sentiment & Valuation
Key valuation multiples (P/E, FCF yield) were not provided, limiting precision. The consensus analyst target ($28) is above the $18.25 current price, implying expectations for improvement, which supports sentiment despite the recent price weakness.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Fundamentals Overview
So What?: Q2 shows clear operating momentum in Integrated Memory while Advanced Computing continues to be dragged by timing and the hyperscaler/Penguin Edge transition. The company raised FY26 topline and EPS to a +12% net sales midpoint and $2.15 non-GAAP EPS (from +6% and $2.00), largely on stronger memory demand/pricing and improved 2H outlook. However, management flags that 2H gross margin will likely soften as AI hardware/memory mix rises and memory input costs increase, and it expects less tariff cost recovery in LED. The main execution risk highlighted in Q&A is conversion timing: revenue lags bookings by ~3–6 months, contributing to a lowered Advanced Computing outlook (-25% to -15% YoY). Growth catalysts are inference/agentic AI driving memory intensity, supported by new MemoryAI (CXL) and KV Cache server availability, plus customer traction such as Deepgram/Dell voice AI and a Tier 1 financial institution CXL KV cache purchase. Overall, the setup is positive for memory, but quarter-to-quarter variability and 2H margin pressure remain key watch items.
Growth Catalysts
- AI workloads shifting from training to real-time inference/agentic AI driving demand for integrated AI infrastructure
- Memory becomes a defining constraint for inference (latency + larger context sizes), supporting durable integrated memory demand
- New inference-centric product launch cadence: MemoryAI systems and MemoryAI KV Cache server (CXL-based memory expansion)
- OriginAI Factory Architecture expanded blueprints addressing low-latency inference workloads
- ClusterWare progress toward a unified control plane for repeatable production-scale AI factory deployments
Business Development
- Deepgram + Dell collaboration for enterprise voice AI deployments (optimized inference environment on Dell PowerEdge servers and NVIDIA RTX Pro 6000 Blackwell GPUs)
- Georgia Tech AI Makerspace developed in partnership with NVIDIA (relationship cited as growing)
- Georgia Tech / NVIDIA partnership referenced as validating Penguin’s concept-to-production deployment capability
- 5 new AI/HPC customer logo wins in Q2; 7 total new AI/HPC logos in first half of 2026 vs 3 in first half of 2025
- Tier 1 financial institution purchased CXL-based KV cache servers for on-prem AI factory
- Marvell acquisition of Celestial AI (PENG previously invested; proceeds received of ~$32M)
Financial Highlights
- Q2 net sales: $343M, down 6% YoY
- Non-GAAP gross margin: 31.2%, up 0.4 percentage points YoY; up 1.2 points sequentially
- Non-GAAP diluted EPS: $0.52, flat YoY; up 7% vs prior quarter
- Non-GAAP operating margin: 13.2%, down 0.2 percentage points YoY; up 1.1 points sequentially
- Non-GAAP diluted EPS guidance (FY26 midpoint) raised to $2.15 vs prior $2.00 (12% net sales growth midpoint; prior 6%)
- Full-year net sales growth midpoint: +12% vs prior +6%
- Segment Q2: Advanced Computing net sales $116M (34% of company), down 42% YoY
- Segment Q2: Integrated Memory net sales $172M (50% of company), up 63% YoY
- Segment Q2: LED net sales $56M (16% of company), down 7% YoY
- Gross margin drivers: Q2 favorable pricing in memory and tariff recovery in LED; management expects lower 2H gross margin due to higher mix of lower-margin AI hardware/memory, rising memory costs in AI factory solutions, and less tariff cost recovery in LED
- Working capital: inventory $322M (51 days) up from $200M a year ago (37 days); accounts payable $401M and DPO 63 days (vs 44 days a year ago)
- Cash & debt: cash/investments $489M; debt $450M (down $20M QoQ); net cash position; no scheduled debt payments until 2029
- Capital return: repurchased ~$32M, ~1.7M shares in Q2; remaining authorization $64.5M as of Feb 27, 2026
- Non-GAAP tax rate guidance maintained at 22%
Capital Funding
- Share repurchase in Q2: $32M to repurchase ~1.7M shares
- Remaining repurchase authorization: $64.5M (as of Feb 27, 2026)
- Total debt: $450M at quarter end (down $20M vs prior quarter); term loan repayments previously noted; 2026 convertible notes retired
- Cash/cash equivalents/short-term investments: $489M at quarter end
Strategy & Ops
- Transition in Advanced Computing away from hyperscaler concentration and wind down of Penguin Edge (sales decline partly reflects wind-down)
- AI factory platform strategy formalized into 6 elements: ClusterWare, MemoryAI, Advanced Computing Systems, OriginAI reference architectures, end-to-end services, partner ecosystem
- New product timing: MemoryAI launched starting at GTC; MemoryAI KV Cache server announced as immediately available; MemoryAI system line expands CXL-based shared memory
- ClusterWare evolving toward unified control plane integrating open ecosystem for repeatable deployments
- Material constraint as operational gating factor for raising 2H memory outlook (company “chasing materials” and uses balance sheet to pre-buy where possible)
- Revenue lag vs bookings: revenue recognizes ~3 to 6 months after bookings (timing drives Advanced Computing guidance change)
Market Outlook
- Raised FY26 outlook midpoint: net sales +12% and non-GAAP diluted EPS $2.15 (previously +6% and $2.00)
- FY26 segment ranges: Advanced Computing net sales expected to change between -25% and -15% YoY
- FY26 segment ranges: Integrated Memory net sales expected to grow between +65% and +75% YoY
- FY26 segment ranges: LED net sales expected to decline between -15% and -5% YoY
- FY26 non-GAAP gross margin outlook: 28% +/- 0.5 percentage points
- FY26 non-GAAP operating expenses: $250M +/- $5M (range narrowed)
- FY26 non-GAAP diluted share count: ~53M (down from prior outlook due to repurchases)
- FY26 EPS: ~$2.15 +/- $0.15; FY26 non-GAAP tax rate remains 22%
- Advanced Computing guidance headwinds explicitly tied to (1) Penguin Edge wind-down (sales essentially cease by end of FY26) and (2) exclusion of advanced computing AI hardware sales to hyperscale customers; combined impact ~14 percentage points unfavorable to total net sales growth and ~30 percentage points unfavorable to Advanced Computing
Risks & Headwinds
- Advanced Computing revenue timing risk: revenue lags bookings by ~3 to 6 months; with ~5 months remaining in FY26, bookings may not convert into 2H revenue
- Material availability constraint limits ability to fully realize higher memory growth outlook (company stated it is the only inhibitor to raising memory outlook further)
- 2H margin risk: higher mix of lower-margin AI hardware and memory, rising memory input costs in AI hardware/AI factory solutions, and less tariff cost recovery in LED vs 1H
- Supply chain constraints and extended component lead times (impacts ramp speed and fulfillment timing)
- Potential demand slowdown from industry-wide higher memory costs (management noted it may slow customer demand and lower gross margins in advanced computing and memory)
- Customer concentration/geographical mix transition risk: ongoing diversification away from hyperscalers still requires “more work to do”
Sentiment: MIXED
Note: This summary was synthesized by AI from the PENG Q2 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.
📋 Official Regulatory 10-K / 10-Q SEC Filings
Direct authenticated documentation links to audited SEC database reports for PENG.