olivLaw · US equity research
Penguin Solutions, Inc. PENG
Semiconductors & Related Devices · SIC 3674 · Vertical: Semiconductors & Related Devices (SIC 3674)
Penguin Solutions designs, builds and manages data centers for AI, serving enterprises, sovereign AI initiatives and neocloud providers, and sells specialty memory and optimized LEDs. In fiscal 2026 total net sales reached 1731.5 million USD, growth driven by the Integrated Memory segment at 924.0 million USD. The company is shifting toward an AI Factory platform model as demand for AI infrastructure accelerates.
At the close of 04 Nov 2026, Penguin Solutions, Inc. (PENG) stock was 48.35 USD (−9.10% on the day), with market capitalisation 2.9 bn USD, P/E 18.6 on diluted EPS of 2.60 USD over the last 12 months, beta 2.37, 52-week range 16.24–81.39 USD. Latest reported quarter (Q4 2026): revenue of 566.7 m USD (+67.7% YoY), net income of 93.2 m USD (+888.3% YoY), diluted EPS 1.46 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 40.5
- weak (30–45)
- Bollinger (20, 2)
- 41.51 – 78.77
- in the lower half of the band · %B 0.18 · band width 62.0%
- SMA 50 / 200
- 56.11 / 44.44
- mixed trend
- MACD (12, 26, 9)
- -2.22 / -0.78
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −20.4% | −1.1% | −19.3 pp | — |
| 3 months | −13.2% | −0.5% | −12.8 pp | — |
| 6 months | +24.0% | +4.4% | +19.6 pp | — |
| Year to date | +147.2% | +12.3% | +134.9 pp | — |
| 1 year | +124.7% | +13.5% | +111.1 pp | +35.9% |
| 3 years | +230.3% | +76.4% | +153.8 pp | +30.5% |
| 5 years | +66.7% | +63.7% | +3.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q4 2026 · 28 Aug 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 341.1 m | 365.5 m | 324.3 m | 337.9 m | 343.1 m | 343.0 m | 478.7 m | 566.7 m |
| Cost of revenue | 243.3 m | 260.9 m | 229.2 m | 241.2 m | 247.0 m | 249.3 m | 345.5 m | 410.8 m |
| Gross profit | 97.8 m | 104.6 m | 95.1 m | 96.7 m | 96.1 m | 93.7 m | 133.2 m | 155.9 m |
| Research & development | 19.8 m | 19.9 m | 20.2 m | 19.9 m | 18.7 m | 19.0 m | 22.0 m | 22.0 m |
| SG&A | 60.5 m | 59.3 m | 59.7 m | 58.6 m | 53.1 m | 48.0 m | 59.4 m | 59.9 m |
| Operating income | 17.4 m | 18.5 m | 9.8 m | 12.4 m | 19.6 m | 25.7 m | 50.9 m | 69.5 m |
| Depreciation & amortisation | 15.0 m | 14.0 m ≈ | 14.0 m ≈ | 13.2 m | 12.8 m | 12.8 m ≈ | 12.3 m ≈ | 12.3 m |
| Pre-tax income | 12.3 m | 16.5 m | 10.7 m | 9.4 m | 7.9 m | 53.0 m | 53.7 m | 37.4 m |
| Income tax | 6.4 m | 7.6 m | 7.3 m | -1.2 m | 1.8 m | 14.4 m | 7.5 m | -57.6 m |
| Net income | 5.2 m | 8.1 m | 2.7 m | 9.4 m | 5.3 m | 37.5 m | 44.7 m | 93.2 m |
| Diluted EPS | 0.10 | 0.09 | -0.01 | 0.17 ≈ | 0.04 | 0.58 | 0.68 | 1.46 ≈ |
| Operating cash flow | 13.8 m | 72.9 m ≈ | 92.8 m ≈ | -70.4 m | 31.1 m | 55.0 m ≈ | -74.8 m ≈ | -163.1 m |
| Capex | 1.8 m | 2.3 m ≈ | 1.9 m ≈ | 2.9 m | 2.9 m | 1.6 m ≈ | 2.8 m ≈ | 4.3 m |
| Share repurchases | 11.1 m | 6.5 m ≈ | 31.6 m ≈ | 3.1 m | 20.2 m | 36.9 m ≈ | 11.8 m ≈ | 5.5 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 52 percentile of its own 23-quarter history (min 2.6, median 18.3, max 68.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.2 bn | 1.1 bn | 1.1 bn | 1.4 bn | 1.4 bn | 1.2 bn | 1.4 bn | 1.7 bn |
| Revenue YoY | −6.0% | −7.4% | −6.0% | +32.2% | +3.3% | −18.8% | +16.9% | +26.5% |
| Net income | 51.3 m | -1.1 m | 21.3 m | 66.6 m | -187.5 m | -52.5 m | 25.4 m | 180.6 m |
| Net income YoY | −57.0% | −102.2% | unavailable | +212.3% | −381.8% | unavailable | unavailable | +611.3% |
| Diluted EPS | 2.19 | -0.02 | 0.44 | 1.22 | -3.65 | -1.00 | 0.28 | 2.60 |
| Diluted EPS YoY | −57.6% | −100.9% | unavailable | +177.3% | −399.2% | unavailable | unavailable | +828.6% |
| net % | 4.2% | -0.1% | 2.0% | 4.8% | -13.0% | -4.5% | 1.9% | 10.4% |
| Free cash flow | 136.2 m | 54.8 m | 136.7 m | 84.6 m | 65.0 m | 57.8 m | 100.1 m | -163.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 28 Aug 2026
- Cash
- 647.2 m USD
- Financial debt
- 789.0 m USD
- Net debt
- 141.7 m USD
- Equity
- 537.2 m USD
- Total assets
- 2.8 bn USD
- Debt / equity
- 1.47x
- Current ratio
- 1.88x
- ROE
- 38.3%
- ROA
- 8.2%
- FCF margin
- -9.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.1 bn | 1.4 bn | 1.4 bn | 1.2 bn | 1.4 bn | 1.7 bn | SEC (XBRL)· 20 Oct 2026verified |
| Cost of revenue | 817.6 m | 1.0 bn | 1.0 bn | 830.0 m | 974.5 m | 1.3 bn | SEC (XBRL)· 20 Oct 2026verified |
| Gross profit | 238.0 m | 391.0 m | 415.2 m | 340.8 m | 394.3 m | 478.9 m | SEC (XBRL)· 20 Oct 2026verified |
| Research & development | 59.9 m | 77.5 m | 90.6 m | 81.5 m | 79.8 m | 81.7 m | SEC (XBRL)· 20 Oct 2026verified |
| SG&A | 158.2 m | 204.8 m | 260.7 m | 233.9 m | 238.2 m | 220.4 m | SEC (XBRL)· 20 Oct 2026verified |
| Operating income | -15.7 m | 67.2 m | 8.7 m | 18.3 m | 58.1 m | 165.6 m | SEC (XBRL)· 20 Oct 2026verified |
| Depreciation & amortisation | 34.9 m | 46.7 m | 71.6 m | 65.7 m | 56.2 m | 50.2 m | SEC (XBRL)· 20 Oct 2026verified |
| EBITDA | 19.2 m ≈ | 113.8 m ≈ | 80.4 m ≈ | 84.0 m ≈ | 114.4 m ≈ | 215.8 m ≈ | SEC (XBRL)· 20 Oct 2026derived |
| Pre-tax income | -32.3 m | 42.5 m | -39.5 m | -31.2 m | 48.9 m | 151.9 m | SEC (XBRL)· 20 Oct 2026verified |
| Income tax | 9.7 m | 18.1 m | -49.2 m | 10.6 m | 20.1 m | -33.9 m | SEC (XBRL)· 20 Oct 2026verified |
| Net income | 21.3 m | 66.6 m | -187.5 m | -52.5 m | 25.4 m | 180.6 m | SEC (XBRL)· 20 Oct 2026verified |
| Diluted EPS | 0.44 | 1.22 | -3.65 | -1.00 | 0.28 | 2.60 | SEC (XBRL)· 20 Oct 2026verified |
| Weighted average diluted shares | 48.6 m | 54.4 m | 51.3 m | 52.4 m | 54.4 m | 58.8 m | SEC (XBRL)· 20 Oct 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 223.0 m | 313.3 m | 365.6 m | 383.1 m | 453.8 m | 647.2 m | SEC (XBRL)· 20 Oct 2026verified |
| Receivables | 313.4 m | 355.0 m | 219.2 m | 251.7 m | 307.9 m | 796.3 m | SEC (XBRL)· 20 Oct 2026verified |
| Inventories | 363.6 m | 263.8 m | 175.0 m | 151.2 m | 255.2 m | 748.8 m | SEC (XBRL)· 20 Oct 2026verified |
| Current assets | 950.8 m | 1.2 bn | 907.4 m | 867.7 m | 1.1 bn | 2.2 bn | SEC (XBRL)· 20 Oct 2026verified |
| Property, plant & equipment, net | 156.3 m | 96.7 m | 118.7 m | 106.5 m | 92.6 m | 84.2 m | SEC (XBRL)· 20 Oct 2026verified |
| Goodwill | 74.3 m | 55.1 m | 162.0 m | 162.0 m | 145.9 m | 145.9 m | SEC (XBRL)· 20 Oct 2026verified |
| Intangibles (excl. goodwill) | 101.1 m | 77.8 m | 160.2 m | 121.5 m | 87.8 m | 59.9 m | SEC (XBRL)· 20 Oct 2026verified |
| Total assets | 1.3 bn | 1.6 bn | 1.5 bn | 1.5 bn | 1.6 bn | 2.8 bn | SEC (XBRL)· 20 Oct 2026verified |
| Accounts payable | 429.6 m | 293.2 m | 135.0 m | 182.0 m | 267.5 m | 816.9 m | SEC (XBRL)· 20 Oct 2026verified |
| Short-term debt | 25.4 m | 8.5 m | 35.6 m | 0 | 19.9 m | 53.4 m | SEC (XBRL)· 20 Oct 2026verified |
| Long-term debt | 340.5 m | 575.7 m | 754.8 m | 657.3 m | 441.9 m | 735.5 m | SEC (XBRL)· 20 Oct 2026verified |
| Current liabilities | 583.8 m | 515.5 m | 426.3 m | 327.6 m | 473.9 m | 1.2 bn | SEC (XBRL)· 20 Oct 2026verified |
| Total liabilities | 1.0 bn | 1.2 bn | 1.3 bn | 1.1 bn | 1.0 bn | 2.0 bn | SEC (XBRL)· 20 Oct 2026verified |
| Equity | 318.9 m | 378.5 m | 229.2 m | 399.2 m | 405.5 m | 537.2 m | SEC (XBRL)· 20 Oct 2026verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 153.4 m | 104.9 m | 104.4 m | 77.2 m | 109.1 m | -151.9 m | SEC (XBRL)· 20 Oct 2026verified |
| Capex | 16.7 m | 20.4 m | 39.4 m | 19.4 m | 9.0 m | 11.6 m | SEC (XBRL)· 20 Oct 2026verified |
| Free cash flow | 136.7 m ≈ | 84.6 m ≈ | 65.0 m ≈ | 57.8 m ≈ | 100.1 m ≈ | -163.5 m ≈ | SEC (XBRL)· 20 Oct 2026derived |
| Investing cash flow | -84.2 m | -39.0 m | -298.6 m | 107.6 m | 25.0 m | 58.1 m | SEC (XBRL)· 20 Oct 2026verified |
| Financing cash flow | 2.8 m | 73.9 m | 236.4 m | -210.1 m | -63.5 m | 287.3 m | SEC (XBRL)· 20 Oct 2026verified |
| Share repurchases | 48.5 m | 57.2 m | 24.7 m | 21.3 m | 52.3 m | 74.4 m | SEC (XBRL)· 20 Oct 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 38 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.9 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet46
- Growth41
- Quality14
- Returns76
- Valuation49
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 25.90 – 303.95 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/Sales104.60 – 303.95 (Mid 163.13)28 companies used · median multiple 5.8x · quartiles 3.7x – 10.7xAAOI, ADI, ALGM, AMAT, AMD, AMKR, AVGO, DIOD, FSLR, FTCI, ICHR, INTC, MCHP, MRAM, MRVL, MTSI, MU, MXL, NVDA, NXPI, ON, PLAB, Q, QUIK, SPCB, SYNA, TXN, WOLF
- Peers: EV/EBITDA25.90 – 82.11 (Mid 57.26)11 companies used · median multiple 16.6x · quartiles 7.9x – 23.6xAMAT, AMKR, FSLR, ICHR, MCHP, MU, NVDA, NXPI, ON, PLAB, SPCB
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 38/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 27.7% | 0 (on a fixed band) | 11% |
| EBIT margin · Quality | 9.6% | 46 (vs peers) | 9% |
| FCF margin · Quality | -9.4% | 0 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 6.3% | 25 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 26.5% | 72 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | 0.7x | 29 (vs peers) | 6% |
| Current ratio · Balance sheet | 1.9x | 64 (on a fixed band) | 6% |
| EV/Sales · Valuation | 1.8x | 86 (vs peers) | 17% |
| FCF yield · Valuation | -5.6% | 0 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 2.6% | 76 (on a fixed band) | 4% |
Score groups
- Balance sheet46/100 · 2/2 factors with a value
- Growth41/100 · 2/2 factors with a value
- Quality14/100 · 3/3 factors with a value
- Returns76/100 · 1/1 factors with a value
- Valuation49/100 · 2/2 factors with a value
Memo
PENGUIN SOLUTIONS, INC. (PENG). Latest full fiscal year: 2026; data up to 2026-08-28.
Figures computed from the financial statements: revenue 1.7 bn USD in 2026; YoY growth 26.5%; net margin 10.4%; ROE 39.5%; net debt/EBITDA 0.7x.
The estimated value range is 65.25–193.03 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 110.20 USD, the price of 48.35 USD leaves a potential of 127.9% (value / price − 1) and a margin of safety of 56.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 38/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue growth (YoY): 26.5%
- EV/Sales: 1.8x
- Shareholder yield (distributions): 2.6%
- The price is below the estimated value range
What contradicts it
- Gross margin: 27.7%
- FCF margin: -9.4%
- Revenue CAGR 3Y: 6.3%
- Net debt / EBITDA: 0.7x
- FCF yield: -5.6%
- The valuation methods diverge
Versus the vertical median
Semiconductors & Related Devices (SIC 3674) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| NVDANvidia Corp | 4,823.1 bn | 25.3 | 117.2% | 63.7% | +65.5% | +13% / +328% |
| AVGOBroadcom Inc. | 1,553.7 bn | 41.6 | 44.2% | 42.9% | +23.9% | −19% / +252% |
| MUMicron Technology, Inc. | 899.7 bn | 10.7 | 88.3% | 63.8% | +256.3% | +236% / +945% |
| AMDAdvanced Micro Devices, Inc | 801.6 bn | 106.3 | 11.8% | 16.8% | +34.3% | +125% / +303% |
| INTCIntel Corporation | 309.7 bn | — | -10.9% | -20.1% | −0.5% | +44% / +30% |
| AMATApplied Materials Inc | 293.2 bn | 31.9 | 41.1% | 30.1% | +4.4% | +46% / +147% |
| TXNTexas Instruments Inc | 284.6 bn | 40.4 | 39.7% | 34.3% | +13.0% | +85% / +104% |
| ARMArm Holdings PLC | 204.1 bn | 225.6 | 12.0% | 18.4% | +22.8% | +41% / +212% |
| ADIAnalog Devices Inc | 196.8 bn | 48.2 | 12.2% | 29.8% | +16.9% | +53% / +122% |
| MRVLMarvell Technology, Inc | 140.1 bn | 52.8 | 16.5% | 27.9% | +42.1% | +79% / +187% |
| NXPINXP Semiconductors N.V. | 66.8 bn | 20.8 | 29.2% | 23.4% | −2.7% | +36% / +30% |
| MPWRMonolithic Power Systems, Inc. | 61.5 bn | 69.5 | 25.1% | 23.9% | +26.4% | +36% / +130% |
| MCHPMicrochip Technology Incorporated | 40.9 bn | 104.2 | 7.2% | 9.3% | +7.1% | +41% / −10% |
| ALABAstera Labs, Inc. | 39.0 bn | 89.0 | 28.2% | 29.6% | +115.1% | +42% / unavailable |
| ONOn Semiconductor Corp | 27.7 bn | 41.4 | 8.9% | 10.8% | −15.3% | +42% / −0% |
| CRDOCredo Technology Group Holding Ltd | 25.7 bn | 48.7 | 30.7% | 33.8% | +205.7% | −23% / +662% |
| QQnity Electronics, Inc. | 24.8 bn | 42.0 | 7.6% | 11.5% | +9.7% | +46% / unavailable |
| FSLRFirst Solar, Inc. | 20.9 bn | 11.3 | 18.7% | 37.1% | +24.1% | −29% / +23% |
| MTSIMACOM Technology Solutions Holdings, Inc. | 17.8 bn | 74.6 | 17.2% | 20.7% | +32.6% | +33% / +178% |
| AMKRAmkor Technology, Inc. | 8.8 bn | 14.4 | 13.6% | 8.3% | +6.2% | −2% / +27% |
| ALGMAllegro Microsystems, Inc. | 5.8 bn | 209.1 | 3.2% | 3.1% | +22.8% | +17% / +15% |
| CRUSCirrus Logic, Inc. | 5.8 bn | 14.6 | 19.5% | 20.2% | +5.3% | −4% / +53% |
| MXLMaxLinear, Inc. | 5.2 bn | — | -5.9% | -4.4% | +29.7% | +265% / +204% |
| AAOIApplied Optoelectronics, Inc. | 5.0 bn | — | -5.4% | -9.6% | +82.8% | +121% / +347% |
| SYNASYNAPTICS Inc | 4.6 bn | — | -42.2% | -41.0% | +11.4% | +71% / +16% |
1- and 3-year price returns: for PENG from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 33.55 Total return -31% · Per year -31% | 59.27 Total return 23% · Per year 23% | 89.21 Total return 85% · Per year 85% |
| 3 years | 33.76 Total return -30% · Per year -11% | 66.98 Total return 39% · Per year 11% | 110.52 Total return 129% · Per year 32% |
| 5 years | 33.96 Total return -30% · Per year -7% | 75.70 Total return 57% · Per year 9% | 136.93 Total return 183% · Per year 23% |
- Exit P/E± 16.75
- Net margin± 11.72
- Annual revenue growth± 9.46
- Annual dilution± 0.98
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Penguin Solutions designs, builds and manages data centers for AI, serving enterprises, sovereign AI initiatives and neocloud providers, and sells specialty memory and optimized LEDs. In fiscal 2026 total net sales reached 1731.5 million USD, growth driven by the Integrated Memory segment at 924.0 million USD. The company is shifting toward an AI Factory platform model as demand for AI infrastructure accelerates.
SWOT
Strengths
Weaknesses
Opportunities
Risks
- Market cyclicalityhigh
The industries served have strong cycles, and demand can fall sharply 1.
- Dependence on major customershigh
A small number of customers account for an important part of revenue, and losing one could affect results 1.
- Volatile selling pricesmedium
Fluctuations in average selling prices, especially in memory, can materially change margins 1.
- Tariffs and international trademedium
Tariffs and trade restrictions have had adverse effects and could again 1.
- Debt, currency and tax exposurelow
Indebtedness, exchange controls and tax changes could limit cash flows and the use of deferred tax assets 1.
Investment thesis
What would need to be true (bull case)
- If demand for AI infrastructure and memory stays high, the Integrated Memory segment could keep supporting revenue growth 1.
- Diversifying toward neocloud and sovereign customers could reduce dependence on hyperscalers and stabilize revenue 1.
- Exiting Penguin Edge and focusing on the AI Factory platform could improve margins over the long term 1.
What would break the thesis
What to watch
- Gross margin trend in Integrated Memory as memory pricing changesQ1 2027
- Pace of AI deployments at neocloud and enterprise customers versus hyperscalers2027
- Effect of the newly appointed CFO on cost discipline and profitability2027
- Updated fiscal 2027 outlook and results reported in the next annual reportnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Penguin Solutions, Inc. (NASDAQ: PENG) presents itself as the AI Factory Platform Company. Its offering combines infrastructure software, advanced memory, compute systems, end-to-end services and partner technologies, for customers who want to speed deployment and optimize token economics 1. The company has three segments: Advanced Computing, Integrated Memory and Optimized LED, the last operating as Cree LED 1. Total net sales in fiscal 2026 were 1731.5 million USD, up from the prior year 1. At the end of fiscal 2026 it had about 2800 employees, mostly in the United States, China and Malaysia 1.
In June 2025 the parent company completed its redomiciliation from the Cayman Islands to Delaware, so the listed entity is now Penguin Solutions, Delaware 1. In 2024 it changed its name from SMART Global Holdings, Inc. and its ticker from SGH to PENG, with no impact on legal structure or financial statements 1. The SMART Brazil operations were divested in stages, with the remaining interest sold in 2026, and are presented as discontinued operations 1.
The Penguin Edge product line was fully discontinued in the fourth quarter of fiscal 2026 to focus resources on higher-growth opportunities 1. Operating income rose compared with the prior year, supported mainly by memory rather than AI computing, whose segment sales declined in the same year 1.
Segments
Integrated Memory
The segment designs and delivers DRAM modules, flash storage, CXL memory expansion solutions and supply chain services, with net sales of 924.0 million USD in fiscal 2026 1. Growth was driven by AI-related demand for DRAM and flash, which improved pricing and volume 1.
Advanced Computing
The segment offers the Full-Stack AI Factory Platform, ComputeAI systems, ClusterWareAI software, OriginAI reference architectures and Stratus fault-tolerant computing 1. Net sales were 558.8 million USD in fiscal 2026, down from the prior year, due to the Penguin Edge wind-down and hyperscale hardware sales that did not recur 1.
Market context
The markets the company serves are cyclical, and demand depends on the electronics industry cycle and customers' inventory decisions 1. The current growth engine is demand for AI inference, high-capacity memory and neocloud infrastructure 1.
The company notes that enterprise AI adoption, neocloud providers and sovereign AI initiatives could expand demand for compute and memory, though the pace is uncertain 1. Macroeconomic pressures, tariffs and geopolitical conflicts can affect all segments at once 1.
Trends
- Demand for AI inference and memorytailwind
The shift from training toward inference and agentic AI could increase demand for CXL memory expansion and GPU utilization improvements 1.
- Diversifying AI customerstailwind
The AI business is moving from hyperscaler concentration toward neocloud, enterprise and sovereign customers, which could stabilize revenue if deployment pace holds 1.
- Memory price volatilitymixed
Higher memory pricing supported Integrated Memory margins, and a decline in prices could reverse that benefit 1.
- Tight supply chainsheadwind
Extended lead times for AI components and reliance on limited suppliers can delay deployments and compress margins 1.
Competitive position
The company competes in highly competitive markets with memory producers and AI infrastructure providers, and its sources do not list a complete set of rivals 1. Competition from OEMs moving to standardized solutions is an explicit risk 1.
In LEDs, competition comes from optical component suppliers, and in memory from larger-scale DRAM and flash producers 1. The company differentiates through specialty solutions and integrated services 1.
- Large-scale DRAM and flash module suppliers
Memory producers of larger scale cited as a competitive force in memory markets 1.
- OEM AI server manufacturers
Compete with the Full-Stack AI Factory Platform when customers choose standardized solutions 1.
- Data center systems integrators
Offer similar design, deployment and management services for AI infrastructure 1.
- LED component manufacturers
Compete in LED chips and components for lighting and displays 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- How penguin poo is making Antarctic snow melt fasterThe Guardian — Environment · 04 Nov 2026 · EN
- Schrödinger's penguin: One species, two contrasting outcomesPhys.org · 22 Oct 2026 · EN
- Linux KVM guest-host escape rated critical, may represent a new way to attack penguin-powered networkingThe Register · 19 Oct 2026 · EN
- The week in wildlife: a penguin posse, a little leopard cat and a chonky squirrelThe Guardian — Environment · 16 Oct 2026 · EN
- Scientists identify avian cholera as major cause of penguin deaths in AntarcticaPhys.org · 14 Oct 2026 · EN
- World's largest penguin colony loses its title after decline of more than 250,000 breeding pairsPhys.org · 13 Oct 2026 · EN
- World's largest chinstrap penguin colony plunges by 63%CGTN — World · 08 Oct 2026 · EN
- Climate change strips island’s title of largest penguin colony, study showsThe Japan Times · 08 Oct 2026 · EN
- World’s largest penguin colony suffers ‘enormous population crash’The Guardian — Environment · 07 Oct 2026 · EN
- World’s once-largest penguin colony is in perilous declineScience (AAAS) · 07 Oct 2026 · EN
- Penguin poop is melting Antarctic snow by keeping algae greenPhys.org · 07 Oct 2026 · EN
- Penguin Mail – open-source Rust email client for Linux with AIHacker News · 06 Oct 2026 · EN
- Scientists discover first new penguin species in more than 100 yearsScienceDaily · 21 Sept 2026 · EN
- JR East unveils new character options to succeed the Suica penguinThe Japan Times · 09 Sept 2026 · EN
- Candidates to succeed Suica smartcard penguin mascot unveiled in JapanThe Straits Times — Asia · 08 Sept 2026 · EN
- Emperor Penguin Linus Torvalds banishes a bug – with a botThe Register · 24 Aug 2026 · EN
- Emperor Penguin Linus Torvalds banishes a bug – with a botThe Register · 24 Aug 2026 · EN
- Australia news live: Shark attack victim thanks donors after ‘incredibly difficult’ recovery; penguin parade gets flu shotsThe Guardian World · 23 Aug 2026 · EN
- First Australian death of little penguin with H5 bird flu confirmed on Phillip IslandThe Guardian World · 15 Aug 2026 · EN
- Lotte World Aquarium unveils baby Humboldt penguinKorea Times — Business · 21 May 2026 · RO
SEC filings
- Current report04 Nov 2026Departure or appointment of officers · Regulation FD disclosure · Other events
- Annual report20 Oct 2026
- Current report06 Oct 2026Results of operations · Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report06 Oct 2026Results of operations · Financial statements and exhibits
- Current report17 Jul 2026Material agreement · Creation of a direct financial obligation · Item 3.02 · Other events · Financial statements and exhibits
- Quarterly report07 Jul 2026
- Current report07 Jul 2026Results of operations · Financial statements and exhibits
- Current report (amendment)01 Jul 2026Departure or appointment of officers
- Current report01 Jun 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report18 May 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-08-28 · SEC / Penguin Solutions, Inc. · 20 Oct 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Penguin Solutions, Inc. · 06 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.