Penguin Solutions Past Earnings Performance
Past criteria checks 2/6
Penguin Solutions has been growing earnings at an average annual rate of 9.1%, while the Semiconductor industry saw earnings declining at 0.4% annually. Revenues have been declining at an average rate of 2.1% per year. Penguin Solutions's return on equity is 15.4%, and it has net margins of 5.1%.
Key information
9.13%
Earnings growth rate
8.31%
EPS growth rate
| Semiconductor Industry Growth | 27.66% |
| Revenue growth rate | -2.08% |
| Return on equity | 15.44% |
| Net Margin | 5.05% |
| Last Earnings Update | 29 May 2026 |
Recent past performance updates
Recent updates
Seeking Alpha • Sep 01
Penguin Solutions: Strong AI Momentum With A Reasonable Valuation
Summary Penguin Solutions offers attractive upside driven by rapid AI infrastructure and integrated memory segment growth, with Q3 revenue up 48% year-over-year. PENG raised its 2026 revenue growth forecast to 22% and expects adjusted EPS around $2.60, while trading at a discounted 18.95x forward P/E versus sector median. Despite strong top-line growth, shrinking gross margins (to 28.5%) and negative operating cash flow highlight risks from working-capital expansion and a hardware-heavy sales mix. Valuation reflects both rapid AI-driven expansion and risks from margin compression, cash flow pressure, and supply chain delays as PENG pivots away from large cloud providers. Read the full article on Seeking Alpha
Narrative Update • Aug 18
PENG: Margin Pressures Will Challenge Elevated AI And Memory Expectations
The analyst price target for Penguin Solutions has shifted from $27 to $45.29, with analysts pointing to stronger AI and memory demand expectations, ongoing pressure on profit margins, and a higher assumed future P/E multiple. Analyst Commentary Recent research on Penguin Solutions shows a wide range of views on the stock, with some analysts highlighting strong AI and memory exposure and others flagging ongoing profit margin pressures and valuation risks.
Narrative Update • Aug 04
PENG: AI Demand And Memory Mix Will Drive Future Upside
The analyst fair value estimate for Penguin Solutions has been revised higher from $38.29 to $74.29 as analysts factor in stronger AI driven revenue expectations, firmer profit margins, and higher future P/E assumptions highlighted in recent price target increases from several firms. Analyst Commentary Recent research on Penguin Solutions reflects a mix of enthusiasm around AI driven growth and memory exposure, alongside caution on margins and valuation.
Narrative Update • Jul 21
PENG: AI Infrastructure And Memory Shift Will Drive Future Business Mix
Penguin Solutions' analyst fair value estimate has moved from $75 to $85 as analysts factor in higher modeled revenue growth, a richer future P/E multiple, and weaker profit margins based on recent research, including higher price targets from several firms and a more cautious view on gross margin pressure from others. Analyst Commentary Recent research on Penguin Solutions shows a wide range of views, with some analysts highlighting margin pressure and others focusing on growing exposure to AI infrastructure and memory.Narrative Update • Jul 07
PENG: FY26 AI Infrastructure And Integrated Memory Momentum Support Balanced Outlook
The analyst fair value estimate for Penguin Solutions moves to $75 from $66, as analysts point to raised Street price targets, higher FY26 guidance, and momentum across integrated memory and AI infrastructure as key supports for the updated outlook. Analyst Commentary Recent research on Penguin Solutions highlights steadily improving sentiment around the stock, with several bullish analysts lifting price targets and pointing to product momentum and updated guidance as key supports for valuation.Narrative Update • Jun 23
PENG: FY26 Guidance And AI Infrastructure Focus Will Shape Balanced Outlook
Penguin Solutions' analyst price target has moved from about $34 to $66, with analysts pointing to updated FY26 guidance and stronger expectations around integrated memory and AI infrastructure demand as key drivers behind the higher valuation assumptions. Analyst Commentary Recent Street research on Penguin Solutions points to a cluster of bullish reactions around the company’s updated FY26 guidance and its positioning in integrated memory and AI infrastructure.Analysis Article • Jun 21
Penguin Solutions (PENG) Stock Could Be 75% Overvalued Despite AI Infrastructure Momentum
Penguin Solutions (PENG) has drawn investor attention after rebranding from SMART Global Holdings. The company has shifted its identity while continuing to operate across advanced computing, integrated memory, and LED segments that collectively generated revenue of about US$1.35b. See our latest analysis for Penguin Solutions. The recent rebrand has been accompanied by sharp share price momentum, with a 1-day share price return of 12.52% and a 30-day share price return of 26.20%. Over longer...Narrative Update • Jun 08
PENG: Raised Guidance And CFO Transition Will Pressure Overextended AI Hype
The analyst price target for Penguin Solutions has been raised by $3, with analysts pointing to updated longer term guidance and their expectations for stronger AI infrastructure and integrated memory demand as key supports for higher fair value, higher revenue growth, and a higher profit margin in their models. Analyst Commentary Recent research highlights a mix of optimism around Penguin Solutions' AI infrastructure and integrated memory businesses, alongside more cautious views that focus on execution and valuation risk.Narrative Update • May 25
PENG: AI Guidance And Execution Risks Will Restrain Future Upside
The analyst price target for Penguin Solutions has moved by about $9.60, with analysts pointing to updated fair value estimates, a slightly adjusted discount rate, modest tweaks to revenue growth and profit margin assumptions, and a higher future P/E multiple to justify the change. Analyst Commentary Recent Street research on Penguin Solutions has been mixed, with some analysts lifting price targets and others trimming them or lowering ratings.Narrative Update • May 04
PENG: Higher Multiple And Mixed Guidance Will Challenge Bullish Expectations
Analysts have lifted the fair value estimate for Penguin Solutions by $1 to $24, reflecting updated assumptions on growth, profitability and future P/E after a mix of recent price target increases and cuts across the Street. Analyst Commentary Street research on Penguin Solutions has been mixed, with some firms adjusting price targets upward while others have taken a more cautious stance and reduced their targets.Narrative Update • Apr 20
PENG: Updated Guidance And AI Partnerships Will Shape Balanced Risk Profile
Penguin Solutions' analyst price target has moved modestly higher to approximately $28.71 from about $28.25, as analysts update their models around new revenue growth, margin, discount rate, and forward P/E assumptions following mixed target changes from firms raising and lowering their views. Analyst Commentary Street research around Penguin Solutions reflects a mix of optimism and caution, with some analysts lifting their targets by about $2 and others trimming by around $3.Analysis Article • Oct 18
Solid Earnings Reflect Penguin Solutions' (NASDAQ:PENG) Strength As A Business
Even though Penguin Solutions, Inc. ( NASDAQ:PENG ) posted strong earnings, investors appeared to be underwhelmed. We...Narrative Update • Oct 03
AI And Digital Transformation Will Drive Global Data Center Success
Peguin Solutions’ fair value price target has been raised from $27.13 to $28.25 per share. Analysts cite stronger memory demand, improved pricing, and early momentum in commercial and sovereign AI opportunities as key drivers behind their more optimistic outlook.Analysis Article • Jul 09
Why Investors Shouldn't Be Surprised By Penguin Solutions, Inc.'s (NASDAQ:PENG) Low P/S
With a price-to-sales (or "P/S") ratio of 0.8x Penguin Solutions, Inc. ( NASDAQ:PENG ) may be sending very bullish...Analysis Article • Jun 12
Is There An Opportunity With Penguin Solutions, Inc.'s (NASDAQ:PENG) 31% Undervaluation?
Key Insights Penguin Solutions' estimated fair value is US$29.64 based on 2 Stage Free Cash Flow to Equity Penguin...Analysis Article • May 22
Is Now An Opportune Moment To Examine Penguin Solutions, Inc. (NASDAQ:PENG)?
Penguin Solutions, Inc. ( NASDAQ:PENG ), might not be a large cap stock, but it received a lot of attention from a...
New Narrative • May 02
Channel Partnerships And AI Deployments Will Open New Opportunities
Expanding channel partnerships and AI infrastructure focus positions Penguin Solutions well for future revenue growth and market capitalization.Revenue & Expenses Breakdown
Revenue & Expenses Breakdown
How Penguin Solutions makes and spends money. Based on latest reported earnings, on an LTM basis.
Earnings and Revenue History
| Date | Revenue | Earnings | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 29 May 26 | 1,503 | 76 | 217 | 80 |
| 27 Feb 26 | 1,348 | 38 | 218 | 78 |
| 28 Nov 25 | 1,371 | 12 | 229 | 79 |
| 29 Aug 25 | 1,369 | 15 | 236 | 80 |
| 30 May 25 | 1,342 | -15 | 229 | 80 |
| 28 Feb 25 | 1,318 | -9 | 226 | 79 |
| 29 Nov 24 | 1,238 | -27 | 228 | 80 |
| 30 Aug 24 | 1,171 | -44 | 225 | 82 |
| 31 May 24 | 1,176 | 45 | 238 | 82 |
| 01 Mar 24 | 1,220 | 20 | 240 | 83 |
| 01 Dec 23 | 1,324 | 0 | 229 | 88 |
| 25 Aug 23 | 1,441 | 8 | 240 | 91 |
| 26 May 23 | 1,139 | -81 | 211 | 90 |
| 24 Feb 23 | 1,257 | -37 | 210 | 90 |
| 25 Nov 22 | 1,318 | -2 | 213 | 84 |
| 26 Aug 22 | 1,396 | 22 | 198 | 77 |
| 27 May 22 | 1,849 | 67 | 212 | 73 |
| 25 Feb 22 | 1,825 | 36 | 202 | 70 |
| 26 Nov 21 | 1,679 | 39 | 181 | 60 |
| 27 Aug 21 | 1,056 | -43 | 153 | 60 |
| 28 May 21 | 1,330 | 8 | 144 | 41 |
| 26 Feb 21 | 1,174 | 16 | 125 | 38 |
| 27 Nov 20 | 1,142 | 1 | 122 | 44 |
| 28 Aug 20 | 1,122 | -1 | 122 | 52 |
| 29 May 20 | 1,104 | -3 | 120 | 58 |
| 28 Feb 20 | 1,058 | -2 | 115 | 54 |
| 29 Nov 19 | 1,090 | 21 | 110 | 51 |
| 30 Aug 19 | 1,212 | 51 | 102 | 48 |
| 31 May 19 | 1,308 | 75 | 99 | 46 |
| 01 Mar 19 | 1,407 | 105 | 94 | 44 |
| 30 Nov 18 | 1,417 | 129 | 89 | 43 |
| 31 Aug 18 | 1,289 | 119 | 81 | 40 |
| 25 May 18 | 1,138 | 80 | 73 | 38 |
| 23 Feb 18 | 1,009 | 56 | 72 | 37 |
| 24 Nov 17 | 867 | 16 | 71 | 37 |
| 25 Aug 17 | 761 | -8 | 70 | 38 |
| 26 May 17 | 684 | 1 | 68 | 39 |
| 24 Feb 17 | 627 | -8 | 65 | 40 |
| 25 Nov 16 | 572 | -12 | 62 | 39 |
| 26 Aug 16 | 534 | -20 | 61 | 38 |
| 26 Feb 16 | 529 | -49 | 71 | 39 |
| 27 Nov 15 | 580 | -49 | 80 | 39 |
Quality Earnings: PENG has a high level of non-cash earnings.
Growing Profit Margin: PENG became profitable in the past.
Free Cash Flow vs Earnings Analysis
Past Earnings Growth Analysis
Earnings Trend: PENG's earnings have grown by 9.1% per year over the past 5 years.
Accelerating Growth: PENG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: PENG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (35.8%).
Return on Equity
High ROE: PENG's Return on Equity (15.4%) is considered low.
Return on Assets
Return on Capital Employed
Discover strong past performing companies
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/09/13 10:47 |
| End of Day Share Price | 2026/09/11 00:00 |
| Earnings | 2026/05/29 |
| Annual Earnings | 2025/08/29 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Penguin Solutions, Inc. is covered by 14 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Thomas O'Malley | Barclays |
| Rustam Kanga | Citizens JMP Securities, LLC |
| Shek Ho | Deutsche Bank |