TLDR
- Penguin Solutions Q3 revenue rose 48% as memory demand accelerated.
- PENG stock rebounded after hours after closing 7.38% lower.
- Integrated Memory sales more than doubled from the prior year.
- Q3 earnings improved sharply as operating income rose 417%.
- Penguin raised fiscal 2026 guidance on stronger infrastructure demand.
Penguin Solutions, Inc. (PENG) closed at $62.71, down 7.38%, before rebounding after hours to $67.48, up 7.60%. The move followed stronger fiscal third-quarter results and a raised full-year outlook. The company pointed to stronger demand across memory and artificial intelligence infrastructure.
Revenue Growth Strengthens Across Core Segments
Penguin Solutions reported record third-quarter net sales of $479 million, up 48% from the year-earlier quarter. The result also rose from $343 million in the second quarter. The growth showed stronger execution across its three main operating segments.
Integrated Memory led the quarter with $275.1 million in net sales. That figure more than doubled from $130.1 million in the same period last year. Advanced Computing added $137.6 million, while Optimized LED contributed $66.1 million.
The company built its latest growth on stronger demand for memory products and artificial intelligence infrastructure. It also expanded customer relationships through its land-and-expand strategy. Management said several new customers later increased their business with the company.
Earnings Improve As Operating Income Rises
Penguin Solutions reported GAAP operating income of $50.9 million for the quarter. That compared with $9.8 million in the year-earlier period. The company also posted non-GAAP operating income of $64.4 million.
GAAP diluted earnings per share reached $0.68. That marked a sharp improvement from a loss of $0.01 per share last year. Non-GAAP diluted earnings per share rose 79% to $0.84.
Net income attributable to Penguin Solutions reached $44.7 million. That compared with $2.7 million in the same quarter last year. The stronger profit reflected higher sales, improved scale, and better operating leverage.
Outlook Rises On Demand For Memory And Infrastructure
Penguin Solutions also raised its fiscal 2026 outlook after the stronger quarter. The company now expects full-year net sales growth of 22%, plus or minus two percentage points. It also expects GAAP earnings per share of $1.97, plus or minus five cents.
The company projected non-GAAP earnings per share of $2.60, plus or minus five cents. This forecast placed results above the high end of its earlier outlook ranges. The company linked the higher outlook to demand across Integrated Memory and AI Infrastructure.
Penguin Solutions has grown from a memory-focused business into a broader infrastructure provider. Its AI Factory Platform now includes software, memory, compute systems, and services. The latest quarter showed how that shift supported stronger sales and earnings.
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