Penguin Solutions, Inc.
- Open
- 49.96
- Day high
- 50.39
- Day low
- 48.26
- Prev close
- 49.51
- Volume
- 1.6M
- Mkt cap
- $2.5B
- P/E (TTM)
- 33.4
- EPS (TTM)
- $1.47
- P/B
- 5.7
- P/S
- 1.7
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$1.2M over the last 3 months (0 open-market buys, 15 sales)
- 🏛Institutions accumulating (13F)
Penguin Solutions, Inc. (PENG) is a Technology company listed on NASDAQ. The stock is up 104% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 15 sales (SEC Form 4). Drillr has 2 published research articles covering PENG.
Penguin Solutions, Inc. (PENG) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PENG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 7, 2026 | $0.54 | $0.84 | +56.1% | $479M | +18.6% |
| Apr 1, 2026 | $0.43 | $0.52 | +20.9% | $343M | +0.2% |
| Jan 6, 2026 | $0.41 | $0.49 | +19.5% | $343M | -0.9% |
| Oct 7, 2025 | $0.37 | $0.43 | +14.8% | $338M | -2.2% |
| Jul 8, 2025 | $0.30 | $0.47 | +56.7% | $324M | -5.6% |
| Apr 2, 2025 | $0.35 | $0.52 | +48.6% | $366M | +11.0% |
| Jan 8, 2025 | $0.39 | $0.49 | +25.6% | $341M | +6.6% |
| Oct 15, 2024 | $0.40 | $0.37 | -7.6% | $311M | -4.3% |
| Jul 9, 2024 | $0.30 | $0.37 | +23.3% | $301M | +0.2% |
| Feb 29, 2024 | $0.25 | $-0.26 | -203.1% | $285M | +0.3% |
| Nov 30, 2023 | $0.16 | $-0.38 | -342.5% | $274M | -0.3% |
| Aug 31, 2023 | $0.46 | $-2.54 | -656.3% | $163M | -56.4% |
PENG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 26, 2026 | Kuykendall Anneofficer: SVP and Chief Legal Officer | Sell | 100 | $51.34 |
| Aug 26, 2026 | Kuykendall Anneofficer: SVP and Chief Legal Officer | Sell | 600 | $49.62 |
| Aug 26, 2026 | Kuykendall Anneofficer: SVP and Chief Legal Officer | Sell | 3,300 | $50.73 |
| Jul 27, 2026 | Clark Joseph Gatesofficer: SVP and Pres, Optimized LED | Sell | 1,327 | $57.47 |
| Jul 22, 2026 | Johnson Aaron Michaelofficer: Interim CFO | Tax | 896 | $60.41 |
| Jul 22, 2026 | Frey Anthony Georgeofficer: SVP and Chief Revenue Officer | Tax | 532 | $60.41 |
| Jul 22, 2026 | Clark Joseph Gatesofficer: SVP and Pres, Optimized LED | Tax | 2,042 | $60.41 |
| Jul 22, 2026 | Kuykendall Anneofficer: SVP and Chief Legal Officer | Tax | 3,061 | $60.41 |
| Jul 22, 2026 | Kuykendall Anneofficer: SVP and Chief Legal Officer | Sell | 739 | $56.12 |
| Jun 16, 2026 | Kuykendall Anneofficer: SVP and Chief Legal Officer | Sell | 1,596 | $64.82 |
| Jun 16, 2026 | Kuykendall Anneofficer: SVP and Chief Legal Officer | Sell | 200 | $62.51 |
| Jun 16, 2026 | Kuykendall Anneofficer: SVP and Chief Legal Officer | Sell | 2,104 | $64.16 |
| Jun 16, 2026 | Kuykendall Anneofficer: SVP and Chief Legal Officer | Sell | 100 | $65.63 |
| Jun 2, 2026 | Clark Joseph Gatesofficer: SVP and Pres, Optimized LED | Sell | 900 | $57.73 |
| Jun 2, 2026 | Clark Joseph Gatesofficer: SVP and Pres, Optimized LED | Sell | 1,439 | $58.50 |
Source: PENG SEC Form 4 filings, latest Aug 26, 2026. For informational purposes only — not investment advice.
See the full PENG insider & 13F page →PENG research & analysis
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Penguin Solutions, Inc. company profile
Overview
Penguin Solutions, Inc. (NASDAQ:PENG) is a technology company that designs and develops enterprise computing solutions worldwide. Founded in 1988 and originally known as SMART Global Holdings, the company rebranded to Penguin Solutions in October 2024 to better reflect its focus on artificial intelligence infrastructure solutions. Based in Grand Cayman, Cayman Islands, Penguin Solutions has evolved from a memory solutions provider into a comprehensive AI and high-performance computing infrastructure company, serving enterprise, government, and hyperscale customers globally.
Business
Penguin Solutions operates in the enterprise computing infrastructure market, providing specialized hardware, software, and services for artificial intelligence (AI) and high-performance computing (HPC) applications. The company's solutions help organizations deploy, manage, and optimize complex computing environments that require massive processing power and memory capacity. The company operates through three main business segments: Advanced Computing (55% of revenue): This segment includes Penguin Computing, which provides high-performance computing and AI solutions for core and cloud environments. The division offers complete AI infrastructure systems that combine powerful processors (from NVIDIA, AMD, and Intel), advanced memory systems, and specialized software platforms. Penguin Edge delivers edge computing solutions for embedded and wireless applications in government, healthcare, manufacturing, and telecommunications. The segment also includes Stratus, which provides fault-tolerant computing solutions that ensure continuous operation in mission-critical environments through redundant hardware and software systems. Integrated Memory (29% of revenue): This segment focuses on advanced memory solutions including dynamic random access memory (DRAM) modules, solid-state drives (SSDs), and flash storage systems. These products are specifically designed for demanding applications in networking, telecommunications, data analytics, and AI/machine learning workloads. The company also provides supply chain services including procurement, logistics, inventory management, and custom packaging for memory products. Optimized LED (16% of revenue): This segment manufactures LED semiconductor chips, particularly blue and green LED chips based on gallium nitride technology. These chips are sold under the Cree LED brand and are used in various lighting and display applications. The products include surface mount devices under the Cree LED XLamp and J Series brands, serving markets from general lighting to specialized industrial applications.
Revenue model
Penguin Solutions generates revenue through multiple business models across its three segments. The Advanced Computing segment primarily sells complete computing systems and infrastructure solutions directly to customers, with additional recurring revenue from software licensing, maintenance services, and managed services contracts. This segment has been growing rapidly, with approximately 20% of revenue coming from services, indicating a shift toward higher-margin recurring revenue streams. The Integrated Memory segment operates on a product sales model, manufacturing and selling memory modules and storage devices to original equipment manufacturers (OEMs), system integrators, and end customers. Revenue is driven by both unit volume and memory pricing, which can be volatile based on global semiconductor supply and demand dynamics. The Optimized LED segment sells LED chips and components primarily to manufacturers who integrate them into lighting products and displays. This business operates on traditional product sales with revenue dependent on LED market demand and competitive pricing. The company's customers include hyperscale cloud providers, enterprise customers across financial services, energy, and manufacturing sectors, government agencies, and technology OEMs. Sales channels include direct sales teams, e-commerce platforms, distributors, and system integrators. Factors that could increase margins include growing demand for AI infrastructure (driving premium pricing), increased software and services revenue (higher margins than hardware), economies of scale in manufacturing, and successful partnerships with major technology providers. Margin pressures could come from memory price volatility, intense competition in the computing hardware market, supply chain disruptions affecting component costs, and the cyclical nature of technology spending by enterprise customers.
Competitive moat
Penguin Solutions operates in highly competitive markets with limited traditional moats. The company's strongest competitive advantages lie in its specialized expertise in complex AI and HPC infrastructure deployment, particularly its software platforms like ICE ClusterWare that simplify the management of large-scale computing environments. The company has built relationships with major chip providers (NVIDIA, AMD, Intel) and strategic partnerships, notably with SK Telecom and Dell, which provide some competitive positioning. However, the company's moat is relatively weak overall. The memory business is largely commoditized with thin margins and cyclical demand patterns. The LED segment faces intense competition from larger semiconductor manufacturers. In Advanced Computing, while the company has technical expertise, it competes against much larger players like Dell, HPE, and Lenovo who have greater scale, broader product portfolios, and stronger customer relationships. The company's recent strategic pivot toward AI infrastructure and software services represents an attempt to build stronger competitive advantages, but this transformation is still in early stages. The partnership with SK Telecom could provide access to new markets and technologies, while the focus on software and services could create more defensible recurring revenue streams. However, the company remains vulnerable to technological disruption, customer concentration risk, and competitive pressure from both established technology giants and emerging AI infrastructure specialists.
Risks & safety
Penguin Solutions shows a moderate margin of safety with some concerning debt levels but strong liquidity position. • Liquidity and Cash Position: Strong cash position of $622 million and current ratio of 2.63, providing substantial liquidity buffer. Free cash flow of $71 million in Q2 2025 demonstrates positive cash generation. • Debt and Solvency: High debt-to-equity ratio of 1.19, indicating significant leverage. Total liabilities of $1.2 billion against $1.8 billion in assets. However, strong current assets of $1.2 billion provide near-term solvency protection. • Valuation Metrics: Trading at 33x P/E ratio and 8.9x EV/EBITDA, suggesting relatively expensive valuation for a cyclical technology hardware company. Price-to-book ratio of 1.77 is reasonable. • Profitability and Returns: Low return on equity of 1.3% indicates poor capital efficiency. Recent positive earnings trend but historically volatile profitability. • Other Considerations: Revenue growth of 28% year-over-year shows strong momentum, but business remains cyclical and dependent on technology spending cycles.
Recent development
Over the past few years, Penguin Solutions has undergone significant strategic transformation, pivoting from a primarily memory-focused company to an AI infrastructure specialist. The company rebranded from SMART Global Holdings to Penguin Solutions in October 2024 to better reflect this new strategic direction. Key strategic developments include the launch of Origin AI, a comprehensive solution that simplifies AI infrastructure deployment and management for enterprise customers. The company has expanded its ICE ClusterWare software platform with multi-tenancy support and introduced the ICE ClusterWare AIM Service for AI infrastructure optimization. These software initiatives represent a shift toward higher-margin, recurring revenue streams. The company has forged important strategic partnerships, most notably a $200 million investment from SK Telecom that opens potential collaboration opportunities across AI infrastructure components. A partnership with Dell provides global go-to-market capabilities, combining Dell's sales reach with Penguin's specialized AI expertise. The company has also secured patent licensing agreements, including one with Daktronics for LED technology. Product development has focused on advanced memory solutions, including the successful launch of CXL (Compute Express Link) add-in cards and the development of the SMART Modular Optical Memory Appliance (OMA), which the company views as revolutionary for future AI compute memory requirements. The company completed the divestiture of its Brazil business majority stake to focus resources on core growth areas. Organizationally, Penguin Solutions has strengthened its leadership team with key executive appointments and announced plans to redomicile from the Cayman Islands to the United States, signaling its commitment to the U.S. market and potentially improving its appeal to institutional investors.
PENG company profile · for informational purposes only — not investment advice.
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