Penguin Solutions, Inc. (PENG)
🔔 Watch stock
Penguin Solutions is the momentum rocket of summer 2026: rank 3 in our in-house Qullamaggie Top Gainers 3M scanner, up roughly 307 percent in three months (as of July 18, 2026), a record quarter with 48 percent revenue growth and a full-year outlook raised twice. We read the annual report (10-K), the quarterly report (10-Q) as of May 29, 2026, and the Q3 release — and found what the rally headlines leave out: the profit surge comes almost entirely from the cyclical memory business, the actual AI computing segment earned just $3.9 million last quarter, operating cash flow collapsed from $179.5 million to $11.2 million in nine months — and two convertible instruments sit deep in the money. Not investment advice — just a close look at what fuel this rocket actually burns.
Appears in These Scanners
This stock currently matches 21 of our scanner strategies — each hit links to the scanner.
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Quality & Screener
AI Rating
Sells AIPenguin Solutions (ex-SMART Global Holdings, Umbenennung Oktober 2024, seit 30.06.2025 Delaware) verkauft KI-Infrastruktur als dokumentierte Umsatzquelle: Das Segment Advanced Computing (648,4 Mio. US-Dollar Umsatz im GJ 2025, bis 29.08.2025) bietet laut Geschäftsbericht (10-K, Item 1 Business) Hardware, Software und Services für technisches Rechnen über fortgeschrittenes High-Performance-Computing und KI-Lösungen an — unter den Marken Penguin Solutions, Penguin Computing und Stratus. Die Q3-Mitteilung vom 07.07.2026 (Exhibit 99.1) nennt eine eigene „AI Factory Platform“, vier neue AI-Infrastructure-Kundenlogos allein im Q3 und Auszeichnungen als Dell-Technologies-AI-Partner des Jahres (Amerikas) sowie NVIDIA AI Factory Specialized Partner; die angehobene Jahresprognose wird ausdrücklich mit sehr starker agentischer KI-Nachfrage begründet. Zusätzlich wirkt KI als Umsatztreiber im Speichergeschäft: Integrated Memory wuchs im Q3 GJ 2026 um 111,4 Prozent, laut 10-Q getragen von KI-getriebener Nachfrage nach DRAM und Flash. Nach dem Kriterienkatalog (Vorrang-Regel: verkauft vor bedroht/nutzt/neutral) ist PENG damit klar „verkauft“ — KI-Produkte und -Dienste sind nachweislich tragende Umsatzquelle.
View the full file — quotes, sources, reviewed filings
„Our Penguin Solutions and Penguin Computing hardware, software, and services focus on technical computing for core and cloud environments via advanced high-performance computing („HPC“) and AI solutions."
Unsere Penguin-Solutions- und Penguin-Computing-Hardware, -Software und -Services konzentrieren sich auf technisches Rechnen für Core- und Cloud-Umgebungen über fortgeschrittenes High-Performance-Computing („HPC“) und KI-Lösungen.
„Integrated Memory net sales increased by $144.9 million, or 111.4%, and $251.1 million, or 75.6%, in the third quarter and first nine months of 2026, respectively, compared to the same periods in the prior year, primarily driven by strong momentum across DRAM and Flash, as accelerating AI-driven demand drove favorable pricing and increased volume."
Die Umsätze von Integrated Memory stiegen im dritten Quartal und in den ersten neun Monaten 2026 um 144,9 Millionen US-Dollar (111,4 Prozent) bzw. 251,1 Millionen US-Dollar (75,6 Prozent) gegenüber den Vorjahreszeiträumen — vor allem getragen von starkem Momentum bei DRAM und Flash, da die beschleunigte KI-getriebene Nachfrage für vorteilhafte Preise und höhere Volumina sorgte.
„We are seeing very strong AI-driven customer demand for memory and AI infrastructure solutions. As inference and agentic AI workloads become more persistent and context-rich, memory is increasingly becoming one of the primary performance and scalability bottlenecks. Penguin is well positioned at the intersection of memory and AI infrastructure to help customers address these evolving requirements."
Wir sehen eine sehr starke KI-getriebene Kundennachfrage nach Speicher- und KI-Infrastruktur-Lösungen. Da Inferenz- und agentische KI-Workloads immer dauerhafter und kontextreicher werden, wird Speicher zunehmend zu einem der wichtigsten Leistungs- und Skalierungsengpässe. Penguin ist an der Schnittstelle von Speicher und KI-Infrastruktur gut positioniert, um Kunden bei diesen wachsenden Anforderungen zu unterstützen.
Filings Reviewed: 10-Q 2026-07-07 · 10-Q 2026-04-01 · 10-Q 2026-01-06 · 10-Q 2025-07-08 · 10-K 2025-10-21 · 10-K 2024-10-24
Rated on July 18, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.10 | – | 341 | 24.40 | 1.50 | 14 | 12 |
| 2025: Q1 | 0.15 | – | 366 | 28.30 | 2.20 | 73 | 71 |
| 2025: Q2 | 0.05 | -52.10 | 324 | 7.90 | 0.80 | 96 | 94 |
| 2025: Q3 | 0.17 | – | 338 | 8.60 | 2.80 | -67 | -70 |
| 2025: Q4 | 0.09 | -4.60 | 343 | 0.60 | 1.50 | 31 | 28 |
| 2026: Q1 | 0.70 | 373.80 | 343 | -6.20 | 10.90 | 55 | 53 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
Rank 3 in the Qullamaggie Top Gainers 3M scanner (U.S. selection, as of July 18, 2026), up roughly 307 percent in three months — backed by real numbers: Q3 FY2026 with record net sales of $478.7 million (up 48 percent), operating income up 417 percent and GAAP EPS of $0.68 after $(0.01) (10-Q as of 05/29/2026; 8-K dated 07/07/2026).
Full-year outlook raised again on July 7, 2026 (~22 percent revenue growth, GAAP EPS $1.97, non-GAAP $2.60); 13 new AI Infrastructure customer logos in four quarters, Dell Technologies Global Alliances Americas AI Partner of the Year and NVIDIA AI Factory Specialized Partner (Exhibit 99.1).
The profit surge comes from the cyclical memory business: Integrated Memory up 111.4 percent with segment operating income up fivefold to $62.2 million — while Advanced Computing, the AI flagship, delivered only $3.9 million of segment operating income (prior year: $24.7 million) and sits 20.6 percent below the prior year after nine months (10-Q as of 05/29/2026).
Operating cash flow of just $11.2 million in 9M FY2026 (prior year: $179.5 million): receivables up $396.4 million, inventories up $243.1 million, counter-financed by $505.2 million more payables — the record is built on invoices and stockpiles (10-Q as of 05/29/2026). Cash comfortable at $440.3 million.
SKT convertible preferred ($200 million, conversion price $32.81 — about half the July 18, 2026 price, ~6.1 million potential new shares, 6 percent cumulative dividend) plus 2029 convertible notes convertible since Q3; SK Telecom is at once a holder of more than 10 percent of the voting interest, board-represented and a customer ($33.9 million of revenue in 9M).
Piotroski 7 out of 9, Altman Z around 6.7, $440.3 million in cash, buybacks and debt repayment — but top-ten customers account for 66 percent of net sales (rising), one customer for 18.2 percent, and purchasing is concentrated with Samsung, Micron and SK hynix (10-K FY2025).
Penguin Solutions is the rare case of a momentum rocket with an audited substructure: a record quarter, a twice-raised outlook, a turnaround after two loss years — and still the label misleads. The profit surge comes almost entirely from the cyclical memory business, while the AI computing segment that gives the stock its name earned almost nothing last quarter; operating cash flow collapsed to $11.2 million, and with the SKT preferred (conversion price $32.81) plus the convertible 2029 notes, a dilution overhang of a good tenth is waiting. Whoever buys here buys the continuation of the memory cycle at 34 times GAAP guidance — not the AI factory from the headline. Not investment advice.
- PENG made the research list as rank 3 of our in-house Qullamaggie Top Gainers 3M scanner (U.S. selection, as of July 18, 2026) — part of our series on this momentum scanner's hits.
- Identity verified against EDGAR: former name "SMART Global Holdings, Inc." (until 10/03/2024), fiscal year ending on the last Friday of August (fiscalYearEnd 0829), Delaware incorporation since 06/30/2025 (Form 8-K12B), Nasdaq: PENG, CIK 0001616533.
- Price and market-value figures (~$67, ~$3.4 billion) from the July 18, 2026 feed, sanity-checked against roughly 51 million weighted shares per the quarterly report 10-Q as of May 29, 2026; trailing P/E based on TTM GAAP EPS of about $1.39 (Q4 FY2025 + 9M FY2026); analyses are evergreen, daily prices are not a buy argument.
About the Company
Penguin Solutions, Inc. entwirft, baut, implementiert und verwaltet Enterprise-Lösungen weltweit.
| Employees | 2,900 |
|---|---|
| Headquarters | Fremont, CA |
| Website | penguinsolutions.com |
| IPO Date | 24. May 2017 |
| Next Earnings | 7. Jul 2026 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Nathan Olmstead | Senior VP & CFO | 1972 |
| Anne Kuykendall J.D. | Senior VP & Chief Legal Officer | 1978 |
| Joseph Clark | Senior VP & President of Optimized LED | 1972 |
| Tony Frey | Senior VP & Chief Revenue Officer | – |
| Kash Shaikh | CEO, President & Director | – |
| Aaron Johnson | Vice President of Finance & Accounting | 1979 |
| Philip Pokorny | Chief Technology Officer | – |
| Srini Tanikella | Senior VP & Chief Information Officer | – |
| Suzanne Schmidt | Head of Investor Relation | – |
| Mark Seamans | Senior Vice President of Global Marketing | 1967 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 20, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.