Penguin Solutions (NASDAQ:PENG) Updates FY 2026 Earnings Guidance

Key Points

• Penguin Solutions raised its FY 2026 outlook, guiding for EPS of $2.55 to $2.65 and revenue of $1.6 billion to $1.7 billion. Both figures are at or above Wall Street expectations, especially the earnings outlook.
• The company recently topped quarterly estimates, reporting $0.84 EPS versus the $0.63 consensus and revenue of $478.71 million versus $407.47 million expected. The results suggest strong demand and improving profitability.
• The stock fell 11.9% despite the upbeat guidance, with shares opening at $53.23. Analyst sentiment remains generally positive, with a consensus rating of “Moderate Buy” and a target price of $63.33.

Penguin Solutions (NASDAQ:PENG - Get Free Report) updated its FY 2026 earnings guidance on Tuesday. The company provided EPS guidance of 2.550-2.650 for the period, compared to the consensus EPS estimate of 2.180. The company issued revenue guidance of $1.6 billion-$1.7 billion, compared to the consensus revenue estimate of $1.6 billion.

Wall Street Analysts Forecast Growth

PENG has been the subject of a number of analyst reports. Citigroup reissued an "outperform" rating on shares of Penguin Solutions in a research report on Wednesday, July 8th. Weiss Ratings raised Penguin Solutions from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, July 8th. Needham & Company LLC lifted their price objective on Penguin Solutions from $60.00 to $80.00 and gave the company a "buy" rating in a research report on Wednesday, July 8th. Stifel Nicolaus raised their price target on Penguin Solutions from $66.00 to $75.00 and gave the stock a "buy" rating in a research note on Wednesday, July 8th. Finally, Barclays downgraded shares of Penguin Solutions from an "equal weight" rating to an "underweight" rating and set a $40.00 price objective for the company. in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $63.33.

Penguin Solutions Trading Down 11.9%

Penguin Solutions stock opened at $53.23 on Tuesday. Penguin Solutions has a 12-month low of $16.04 and a 12-month high of $89.86. The stock has a market capitalization of $2.73 billion, a PE ratio of 37.75 and a beta of 2.83. The firm has a 50 day simple moving average of $62.15 and a 200-day simple moving average of $35.95. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.54 and a quick ratio of 1.10.

Penguin Solutions (NASDAQ:PENG - Get Free Report) last issued its quarterly earnings results on Tuesday, July 7th. The company reported $0.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.63 by $0.21. The firm had revenue of $478.71 million during the quarter, compared to analyst estimates of $407.47 million. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.During the same period last year, the company posted $0.52 EPS. As a group, equities research analysts expect that Penguin Solutions will post 2.08 EPS for the current fiscal year.

Insider Buying and Selling at Penguin Solutions

In other Penguin Solutions news, SVP Joseph Gates Clark sold 10,351 shares of Penguin Solutions stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $58.87, for a total value of $609,363.37. Following the transaction, the senior vice president owned 66,425 shares in the company, valued at approximately $3,910,439.75. The trade was a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $64.38, for a total value of $257,520.00. Following the sale, the senior vice president owned 120,794 shares of the company's stock, valued at $7,776,717.72. This trade represents a 3.21% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 65,574 shares of company stock valued at $3,069,722 over the last 90 days. Insiders own 2.90% of the company's stock.

Institutional Trading of Penguin Solutions

A number of hedge funds have recently bought and sold shares of the company. Kestra Advisory Services LLC purchased a new position in shares of Penguin Solutions in the fourth quarter worth approximately $29,000. Raymond James Financial Inc. acquired a new stake in Penguin Solutions during the 2nd quarter valued at $37,000. Advisory Services Network LLC purchased a new stake in shares of Penguin Solutions in the third quarter valued at $50,000. Osaic Holdings Inc. boosted its position in shares of Penguin Solutions by 20.8% in the second quarter. Osaic Holdings Inc. now owns 3,583 shares of the company's stock worth $71,000 after buying an additional 617 shares during the period. Finally, Globeflex Capital L P acquired a new position in Penguin Solutions during the second quarter valued at $105,000.

Penguin Solutions Company Profile

Penguin Solutions, Inc engages in the designing and development of enterprise solutions worldwide. It operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers dynamic random access memory modules, solid-state and flash storage, and other advanced integrated memory solutions for networking and telecom, data analytics, artificial intelligence and machine learning applications; and supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging services.

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