Penguin Solutions (PENG) Q4 2026 earnings summary

Executive summary

• Q4 FY26 net sales reached a record $566.7M, up 68% YoY; AI-driven businesses generated 78% of sales and grew 141%.

• FY26 net sales were $1.731B, up 26%; stronger memory demand and accelerating AI infrastructure activity supported higher FY27 guidance.

• Second-half sales growth accelerated to 58%, following relatively flat first-half results; Q3 grew 48% and Q4 68%.

Financial highlights

• Q4 non-GAAP gross profit was $163M, non-GAAP operating income $89.8M, and adjusted EBITDA $93.3M, up 115% YoY.

• FY26 non-GAAP gross profit was $508M, non-GAAP operating income $241M, adjusted EBITDA $256.4M, and non-GAAP diluted EPS $2.87, up 51%.

• Q4 diluted EPS was $1.29 GAAP and $1.00 non-GAAP; FY26 diluted EPS was $2.60 GAAP and $2.87 non-GAAP.

• Q4 product sales were $510M and services sales $57M; segment mix was 60% Integrated Memory, 27% Advanced Computing, and 13% Optimized LED.

Outlook and guidance

• FY27 net sales outlook is $2.43B at midpoint, or 40% YoY growth ±10 percentage points, above the prior preliminary midpoint of $2.17B.

• FY27 diluted EPS guidance is $3.50 ±$0.70 GAAP and $4.45 ±$0.70 non-GAAP, based on 63M diluted shares.

• FY27 gross margin guidance is 27% ±2% GAAP and 28% ±2% non-GAAP; operating expenses are $329M ±$10M GAAP and $275M ±$10M non-GAAP.

• FY27 segment sales growth outlook: Advanced Computing ~40% ±10 points, Integrated Memory ~50% ±10 points, and Optimized LED relatively flat YoY.