Penguin Solutions (88E) Q4 2026 Earnings Report
DE:88E Q4 2026 EPS Results
- Actual EPS
- EUR 0.89
- Consensus EPS
- EUR 0.69
- Beat/Miss
- Beat by +EUR 0.20
- One Year Ago EPS
- EUR 0.38
DE:88E Q4 2026 Revenue Results
- Actual Revenue
- EUR 504.79M
- Expected Revenue
- EUR 464.09M
- Beat/Miss
- Beat by +EUR 40.70M
- YoY Revenue Growth
- +67.70%
Earnings Announcement Details
- Quarter
- Q4 2026
- Date
- 10/06/2026
- Time
- After Close
- Conference Call
- Tuesday, October 6, 2026
DE:88E Upcoming Earnings
Penguin Solutions's next earnings date is estimated for January 5, 2027, based on past reporting schedules.
Q4 2026 Earnings Call Audio
DE:88E Q4 2026 Earnings Call
0:00 / 0:00
Q4 2026 Earnings Slide Deck
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, supported by record Q4 results, accelerating AI infrastructure and memory demand, record backlog, major neocloud wins and a materially increased fiscal 2027 outlook. The main challenges were declines in legacy and hyperscale-related businesses, full-year gross margin compression, substantial working capital usage, cash flow outlays and ongoing supply and customer deployment timing variables. Highlights significantly outweighed the lowlights.
Company Guidance
For fiscal year 2027, Penguin Solutions expects net sales to grow approximately 40% at the midpoint, plus or minus 10 percentage points, or an increase of approximately $700 million to approximately $2.43 billion at the midpoint; using the same fiscal 2026 outlook midpoint, the current fiscal 2027 midpoint represents growth of approximately 45%, versus the preliminary view of approximately 30% growth. Advanced Computing net sales are expected to grow approximately 40% at the midpoint, plus or minus 10 percentage points; Integrated Memory net sales are expected to grow approximately 50% at the midpoint, plus or minus 10 percentage points; and Optimized LED net sales are expected to be relatively flat year-over-year. Full year gross margin is expected to be approximately 28%, plus or minus 2 percentage points, operating expenses approximately $275 million, plus or minus $10 million, and diluted earnings per share approximately $4.45, plus or minus $0.70, representing growth of approximately 55% at the midpoint; the EPS outlook assumes a diluted share count of approximately 63 million shares and an effective tax rate of approximately 20%.
- Record Fourth-Quarter ResultsPenguin Solutions set company records in Q4 fiscal 2026 for net sales, gross profit dollars, operating income, operating margin, net income and adjusted EBITDA. Net sales were $567 million, up 68% year-over-year and 18% sequentially, while diluted EPS was $1, up 133% year-over-year.
- Strong Full-Year Growth and ProfitabilityFull-year net sales were approximately $1.73 billion, up approximately 26% year-over-year. Diluted EPS increased 51% to $2.87, and full-year operating income reached a record $241 million, up 44%, with operating margin expanding 1.7 percentage points to 13.9%.
- AI-Driven Businesses Scaled RapidlyNon-hyperscale AI infrastructure and Integrated Memory represented 78% of Q4 company net sales and grew 141% year-over-year. After relatively flat year-over-year net sales in the first half, growth accelerated to 48% in Q3 and 68% in Q4, producing second-half growth of 58%.
- Record Backlog and Accelerating BookingsBookings in AI infrastructure and Integrated Memory grew faster than net sales in Q4. The company ended fiscal 2026 with record company backlog, said the memory backlog extends to at least four quarters, and reported that bookings accelerated further entering fiscal 2027.
- Advanced Computing AI Infrastructure GrowthQ4 Advanced Computing net sales were $154 million, up 11% year-over-year and 12% sequentially. Non-hyperscale AI infrastructure net sales grew 99% year-over-year and represented 66% of Advanced Computing net sales, up from 60% in the prior-year quarter.
- Expansion of the AI Infrastructure Customer BasePenguin added six new AI infrastructure customers in Q4, including four neoclouds, a large quantitative trading firm and an enterprise customer. Across fiscal 2026, it added 17 new AI infrastructure customers, while 12 customers expanded their business with Penguin.
- Large-Scale Neocloud EngagementsThe company disclosed multiple neocloud wins, including a South Korean technology company-backed neocloud selecting Penguin to design, build, deploy and manage an NVIDIA GB300 NVL72-based platform; a publicly traded neocloud with more than $3 billion in signed multiyear AI infrastructure contracts selecting Penguin for deployment and 24/7 operation services; and a provider with $10 billion in contracted compute selecting Penguin to deploy and operate a 36,000-GPU AI factory in Norway.
- Full-Stack AI Factory Platform DifferentiationPenguin's Full-Stack AI Factory Platform combines ClusterWareAI operating system software, MemoryAI and Integrated Memory solutions, GPU and CPU systems under Compute AI, OriginAI factory architectures, and end-to-end design, build, deploy and manage services. The company said neocloud unit economics are similar to enterprise on-premise AI factory deployments and that managed services engagements typically span three to five years.
- ClusterWareAI Product AdvancementPenguin continued advancing ClusterWareAI with agentic AI capabilities for AI factory operations, remediation and infrastructure monitoring. Its AI Factory operations agent provides administrators with a natural-language interface for operational insights.
- NVIDIA Partnership StrengthenedPenguin became an NVIDIA AI Factory Specialized Partner, an invitation-only designation. The company also said its partnership with NVIDIA continues to strengthen after more than a decade of building and managing NVIDIA-based AI factories.
- Record Integrated Memory PerformanceQ4 Integrated Memory net sales reached a record $341 million, representing 60% of company net sales, up 158% year-over-year and 24% sequentially. Full-year Integrated Memory net sales were $924 million, up 99%, and represented 53% of company net sales versus 34% in fiscal 2025.
- Memory Customer and Product ExpansionPenguin added two new memory customer logos in Q4 and 15 new customers during fiscal 2026, while 29 existing customers expanded their business. The company reported increases in both memory volume and pricing, secured business with a leading global AI server manufacturer, and expanded its relationship with an AI inference provider using CXL memory expansion cards.
- MemoryAI and CXL Road MapPenguin is developing CXL-based large-memory expansion cards, a MemoryAI KV-cache solution, future photonic high-bandwidth memory appliances, and a CXL AIC product line designed to repurpose installed DDR4 memory for AI infrastructure. The company said the CXL pipeline and bookings are increasing strongly, particularly for inference workloads.
- Optimized LED Quarterly ImprovementOptimized LED Q4 net sales totaled $72 million, up 7% year-over-year. The company said the LED business delivered improved profitability while it continued to manage the business with discipline and focus on profitable opportunities.
- Operating Leverage and Expense DisciplineQ4 gross profit was a record $163 million, up 21% sequentially and 57% year-over-year. Operating income was a record $90 million, up 39% sequentially and 129% year-over-year, while operating margin expanded 2.4 percentage points sequentially and 4.2 percentage points year-over-year to 15.8%. Full-year operating expenses increased 4% to $267 million, well below the 26% increase in net sales.
- Record Adjusted EBITDAQ4 adjusted EBITDA was a record $93 million, up 115% year-over-year and 38% sequentially. Full-year adjusted EBITDA was $256 million, up 37%.
- Raised Fiscal 2027 OutlookPenguin raised its fiscal 2027 outlook above the preliminary view provided in the prior quarter. At the midpoint, it expects net sales growth of approximately 40%, plus or minus 10 percentage points, to approximately $2.43 billion, while diluted EPS is expected to be approximately $4.45, plus or minus $0.70, representing approximately 55% growth at the midpoint and exceeding the expected rate of net sales growth.
- Positive Segment OutlookFor fiscal 2027, Advanced Computing is expected to grow approximately 40% at the midpoint, plus or minus 10 percentage points; Integrated Memory is expected to grow approximately 50% at the midpoint, plus or minus 10 percentage points; and Optimized LED is expected to be relatively flat year-over-year.
- Capital Structure and Liquidity ActionsPenguin completed a significantly oversubscribed $750 million 0% convertible note offering due in 2031, with an initial conversion price of approximately $116.70 per share, representing an approximately 50% premium to the share price at pricing. It also exchanged approximately $296 million of existing convertible notes, repaid the $100 million outstanding under its credit agreement, and ended Q4 with $647 million in cash and cash equivalents.
- Asset-Light Scaling ModelCapital expenditures were $4 million in Q4 and $12 million for the full year, well under 1% of net sales. The company said its asset-light model allows it to scale without significant capital spending and expects that to continue in fiscal 2027.
- Continued Investment in Innovation and AIPenguin said it is continuing to invest in differentiated products and capabilities, including ClusterWareAI, CXL memory expansion products and MemoryAI. It is also deploying agentic AI across operations, using AI-driven coding workflows to accelerate ClusterWareAI development, compress product cycles and improve supply-chain responsiveness.
- Efficient Global Operating ModelThe company said more than 95% of its engineering workforce is in India, memory engineering is in Taiwan and manufacturing is in Malaysia, which supports cost-effective scaling. It also said 100% of its software engineers are using AI for code generation and that AI is being used across functions including finance and legal.
- New Leadership AdditionStephen Cumming joined Penguin Solutions as Chief Financial Officer. Management described him as an experienced public company executive with a track record in financial leadership, operational scaling and investor relations.
DE:88E Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 05, 2027 | 2027 (Q1) | 0.93- | 0.44 | ― | ― |
| Oct 06, 2026 | 2026 (Q4) | 0.690.89 | 0.38 | 132.56% (+0.51) | |
| Jul 07, 2026 | 2026 (Q3) | 0.480.75 | 0.42 | 78.72% (+0.33) | |
| Apr 01, 2026 | 2026 (Q2) | 0.380.46 | 0.46 | 0.00% (+0.00) | |
| Jan 06, 2026 | 2026 (Q1) | 0.390.44 | 0.44 | 0.00% (+0.00) | |
| Oct 07, 2025 | 2025 (Q4) | 0.330.38 | 0.33 | 16.22% (+0.05) | |
| Jul 08, 2025 | 2025 (Q3) | 0.370.42 | 0.33 | 27.03% (+0.09) | |
| Apr 02, 2025 | 2025 (Q2) | 0.340.46 | 0.24 | 92.59% (+0.22) | |
| Jan 08, 2025 | 2025 (Q1) | 0.350.44 | 0.21 | 104.17% (+0.22) | |
| Oct 15, 2024 | 2024 (Q4) | 0.360.33 | 0.31 | 5.71% (+0.02) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
