Penguin Solutions, Inc.
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
Open questions — about the company, not about its price: the earning power currently rests on the memory cycle, while the AI computing segment barely contributes, and the SKT preferred plus the 2029 notes hang over the share count. The rating says nothing about the entry price — that is what the metrics scanners answer. Three lines in every quarterly report (10-Q) settle the rest: Advanced Computing's segment operating income (does it recover from $3.9 million?), operating cash flow against net income (does the record arrive as money?) and receivables plus inventories (do $703.0 million and $498.3 million come back down?). The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
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. What carries the numbers today is the memory cycle — not yet the AI factory from the headline; that is the open question behind the rating. Not investment advice.
Momentum & record quarter
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).
Outlook & AI tailwind
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).
Profit source & segment mix
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).
Cash conversion
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.
Dilution & governance
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).
Balance sheet & customer base
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).
Worth Noting
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.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at PENG since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 16.20 $ to 81.40 $ · Last price: 52.60 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
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.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Information Technology Services
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Penguin Solutions, Inc. PENG | 2.7 | 94.5 | 16.3 | 27.9 | 7.8 | 16.9 | 100.0 |
| International Business Machines IBM | 212.8 | 21.3 | 16.3 | 58.1 | 13.8 | 7.6 | -5.9 |
| Accenture plc ACN | 117.9 | 15.3 | 9.0 | 32.0 | 17.0 | 7.4 | -18.5 |
| Infosys Ltd INFY | 45.0 | 13.7 | 9.0 | 29.7 | 21.2 | 4.6 | -32.7 |
| Cognizant Technology Solutions Corporation CTSH | 29.3 | 13.1 | 7.3 | 33.4 | 15.6 | 7.0 | -9.6 |
| CDW Corp CDW | 19.1 | 17.3 | 12.4 | 21.4 | 6.6 | 6.8 | -9.0 |
| Broadridge Financial Solutions Inc BR | 19.0 | 17.6 | 12.1 | 31.8 | 18.4 | 5.9 | -31.4 |
| Fidelity National Information Services, Inc. FIS | 18.8 | 7.2 | 9.6 | 35.8 | 16.4 | 5.4 | -43.7 |
| Wipro Limited WIT | 16.6 | 12.9 | 7.4 | 29.0 | 15.7 | 4.0 | -37.3 |
| Median of companies shown | 19.1 | 15.3 | 9.6 | 31.8 | 15.7 | 6.8 | -18.5 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 534 | 6 | -20 | -0.48 | 15 | -1 | 459 |
| 2017 | 761 | 54 | -8 | -0.25 | -1 | 82 | 480 |
| 2018 | 1,289 | 170 | 119 | 2.58 | 68 | 187 | 673 |
| 2019 | 1,212 | 89 | 51 | 1.09 | 170 | 273 | 704 |
| 2020 | 1,122 | 41 | -1 | -0.02 | 87 | 282 | 787 |
| 2021 | 1,056 | -16 | 21 | 0.41 | 153 | 310 | 1,345 |
| 2022 | 1,396 | 67 | 67 | 1.22 | 105 | 372 | 1,572 |
| 2023 | 1,441 | 9 | -188 | -3.65 | 104 | 222 | 1,506 |
| 2024 | 1,171 | 18 | -52 | -1.00 | 77 | 391 | 1,475 |
| 2025 | 1,369 | 74 | 22 | 0.40 | 109 | 596 | 1,617 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| 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 |
What Do These Terms Mean?
- 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.
Screening
Appears in These Scanners
This stock currently matches 29 of our scanner strategies — each hit links to the scanner.
Backtested Scanners
Growth
Quality & Balance Sheet
Breakout & Setup
- Gap-Up (≥3%)
- Oliver Kell: Gappers
- Pradeep Bonde: $ Breakout Bullish
- Pradeep Bonde: 4% Breakout Bullish
Momentum & Trend
- 21-EMA Trend
- Above 21-EMA Pullback
- Above the 50- & 200-SMA
- CANSLIM Type RS
- Gary Antonacci: Dual Momentum (Stock Adaptation)
- High ADR (≥5%)
- Kathy Donnelly: Liquid Movers Up
- Mark Minervini: Trend Criteria — 1 Month
- Mike Webster: Swing Trading List
- Oliver Kell: Doublers
- Oliver Kell: Strength on Down Day
- Qullamaggie: Top Gainers 3M
- Qullamaggie: Top Gainers 6M
- RS Leader (≥90)
- Richard Moglen: Gaps and Strong Moves
- Richard Moglen: Top Performers 3/6 Month
- Stage 2 Leader
- Stan Weinstein: Checklist
- Stan Weinstein: Stage 2
Research
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
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 08/31/2027 | 3.34 | 3.03 – 3.50 | 2,198 | 27.9% | 7 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Free cash flow over the past twelve months is negative, which rules out a serious reverse calculation. Any growth rate only makes a negative cash flow more negative; no present value comes out of it. What the price reflects here is therefore not a stream of cash flows, but the expectation that there will be one at all.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Penguin 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.
10-K · 2025-10-21 · View SEC filing
„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.
10-Q · 2026-07-07 · View SEC filing
„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.
8-K (Exhibit 99.1) · 2026-07-07 · View SEC filing
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
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years -0.7%
- More than 10% revenue growth is expected for the coming year 17.3%
- Share count grows by less than 3% a year -0.1%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 24.2%
- Gross margin at 40% or higher and without meaningful erosion 28.8%
- Goodwill from acquisitions does not grow faster than revenue 9.0%
- Net debt below twice EBITDA 2.5 x EBITDA
- Operating cash flow covers the profits of the last three years 509 m
- Return on capital at 15% or higher, or up versus two years ago 6.5%
- Insiders hold at least 10% or are net buyers 3.2%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
6/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 11.0%
- Exp. sales growth 3Y > 5% 60.6%
- EBIT growth 10Y > 5% 31.8%
- Exp. EBIT growth 3Y > 5% 742.6%
- Net debt < 4x EBIT 3.8x
- EBIT positive, 10Y straight 9
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% 6.0%
- ROCE > 15% 6.5%
- Expected return > 10% 773.9%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Aug 24, 2026 | Kuykendall Anne | SVP and Chief Legal Officer | Sell | 100 | 51.34 | 5,134 |
| Aug 24, 2026 | Kuykendall Anne | SVP and Chief Legal Officer | Sell | 3,300 | 50.73 | 167,393 |
| Aug 24, 2026 | Kuykendall Anne | SVP and Chief Legal Officer | Sell | 600 | 49.62 | 29,774 |
| Jul 23, 2026 | Clark Joseph Gates | SVP and Pres, Optimized LED | Sell | 1,327 | 57.47 | 76,263 |
| Jul 22, 2026 | Kuykendall Anne | SVP and Chief Legal Officer | Sell | 739 | 56.12 | 41,473 |
| Jul 20, 2026 | Johnson Aaron Michael | Interim CFO | Other | 896 | 60.41 | 54,127 |
| Jul 20, 2026 | Frey Anthony George | SVP and Chief Revenue Officer | Other | 532 | 60.41 | 32,138 |
| Jul 20, 2026 | Clark Joseph Gates | SVP and Pres, Optimized LED | Other | 2,042 | 60.41 | 123,357 |
| Jul 20, 2026 | Kuykendall Anne | SVP and Chief Legal Officer | Other | 3,061 | 60.41 | 184,915 |
| Apr 22, 2026 | Anne Kuykendall | SVP | Sell | 738 | 27.92 | 20,605 |
The company
About the Company
Penguin Solutions, Inc. entwirft, baut, implementiert und verwaltet Enterprise-Lösungen weltweit.
- Employees
- 2,900
- Headquarters
- Fremont, CA
- Address
- 45800 Northport Loop West, 94538 Fremont, United States
- Phone
- 510 623 1231
- Website
- penguinsolutions.com
- IPO Date
- 05/24/2017
- ISIN
- US7069151055
- Stock Split
- 2:1 on 02/02/2022
Management
| Name | Title | Birth Year |
|---|---|---|
| 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 | VP of Finance & Accounting, Interim CFO and Principal Financial & Accounting Officer | 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 |
| Ted Gillick | Senior Vice President of Strategy & Corporate Development | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 07/17/2026 Penguin Solutions, Inc. (PENG): Entry into a Material Definitive Agreement; Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant; Unregistered Sales of Equity Securities; Other Events; Financial Statements and Exhibits SEC ↗
- 07/07/2026 Penguin Solutions, Inc. (PENG): Results of Operations and Financial Condition; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 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.