Penguin Solutions (NASDAQ: PENG) reported a net revenue of $343 million for Q1 of its fiscal year 2026, marking a 1% increase year-over-year. The company, which specializes in enterprise-quality AI solutions, saw a significant 41% rise in its Integrated Memory segment, counterbalancing declines in other areas. Despite a gross margin compression of 70 basis points, operating income rose by 13%, resulting in adjusted earnings of 49 cents per share, significantly beating expectations.
Looking ahead, Penguin Solutions forecasts a revenue growth of approximately 6% for the year and anticipates a midpoint earnings per share of $2, which exceeds market expectations. Analysts have given the stock a “Moderate Buy” rating, with a consensus price target of $31, suggesting a potential upside of 30%. Institutional investors have also shown strong support, buying nearly $9 for every $1 sold, indicating a bullish sentiment surrounding the stock.
