Penguin Solutions Stock Earnings Reports

Penguin Solutions reported Q1 FY2026 revenue of $343 million, +1% year-over-year and +2% sequentially, with non-GAAP gross margin of 30% and non-GAAP diluted EPS of $0.49. Management highlighted continued progress diversifying customers away from hyperscalers toward enterprise and sovereign cloud opportunities, early customer wins in defense and education, and expanding pipelines in financial services, oil & gas, telecom, manufacturing and research. Segment detail: Advanced Computing revenue was $151M (44% of sales) and down 15% YoY driven by the wind-down of Penguin Edge and absence of prior-year hyperscale hardware; excluding those items, Advanced Computing grew 52% YoY. Integrated Memory was $137M (40% of sales), +41% YoY, with stronger demand and CXL/optical memory initiatives underway. Optimized LED (Cree) was $55M (16% of sales), -18% sequentially, with weakness in China and some U.S. OEMs but improved operating income. Cash and liquidity are strong ($461M), operating cash flow improved materially, and the company repurchased $15M of stock in the quarter. Management reiterated full-year guidance: mid-point ~6% net sales growth and ~$2 non-GAAP EPS, assuming no hyperscale advanced computing hardware and the wind-down of Penguin Edge; memory is expected to grow 20–35% and LED to decline 5–15%. They expect stronger sales in H2 and noted supply-chain lead times and memory wafer constraints as execution risks.