PENG · NasdaqGS
Information Technology Services · United States
Snapshot 2026-11-11 · Latest financial period 2026-08-28 · Yahoo Finance. Quotes may be delayed; reporting periods can differ.
Next earnings: 2027-01-05 (provider estimate; issuer confirmation unavailable here).
Penguin Solutions, Inc. designs, builds, deploys and manages data centers for enterprises, sovereign AI initiatives, and neocloud providers worldwide. The company operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers AI infrastructure design, system integration, deployment, cluster validation, performance optimization, and ongoing infrastructure management services; continuous availability of customers critical data and applications in data centers and edge locations under the Stratus brand products; and dynamic random-access memory, modules, solid-state/flash storage, and CXL-based memory expansion technologies designed to improve memory capacity, bandwidth, and system efficiency under the SMART Modular Technologies brand. The company also provides Zefr, a memory module; Altus and AMD EPYC based servers for expanded memory capacity; flash memory products comprising solid-state drives, Serial Advanced Technology Attachment, and PCIe NVMe products in 2.5 enclosures, M.2, EDSFF, and other form factors; and multimediacard and embedded and removable USB products, SD and microSD Card configurations, and firmware development. In addition, it offers procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging supply chain services; and LEDs under the Cree LED brand; Cree LED XLamp and J Series packaged LED components. It serves OEMs, enterprises, government, and other customers through direct and third-party channels. The company was formerly known as SMART Global Holdings, Inc. and changed its name to Penguin Solutions, Inc. in October 2024. Penguin Solutions, Inc. was founded in 1988 and is headquartered in Fremont, California.
Company websiteQ4 FY2026
Published 2026-10-06
Q4 FY2026 REPORT HIGHLIGHTS
Penguin beat expectations and raised its outlook. Our research tests memory-led growth, working capital, dilution and valuation.
Quarterly revenue and adjusted EPS exceeded the captured provider estimates; FY2027 guidance increased.
Its contribution explains91.2% of the quarterly revenue increase; new AI customer wins are not disclosed backlog dollars.
Receivables and inventory expanded sharply, producing negative FY2026 free cash flow despite stronger operating income.
Old-note exchanges issued common stock; convertible preferred participation requires explicit valuation treatment.
HOLD at a $60 base, with a $35–$100 scenario band and a $48 margin-of-safety checkpoint.
Comparable businesses
Same business group first, then company size. Preferred market cap: 0.5–2x; extended range: one-third–3x. Outside that range, industry benchmarks are labeled separately and excluded from peer medians.
No suitable peers with fresh, comparable size data are available. We have not substituted unrelated companies.
| Metric | PENGPenguin Solutions, Inc.Snapshot 2026-11-11Financial period: 2026-08-28 |
|---|---|
| Market capMarket value, converted to USD | US$2.52B |
| Forward P/EProvider forward earnings estimate | 9.37x |
| EV / EBITDAEnterprise value / trailing EBITDA | 13.63x |
| Revenue growthLatest quarter vs prior-year quarter | 67.7% |
| Operating marginLatest reported quarter | 10.3% |
| Free cash flow yieldTrailing cash flow / market cap | -4.9% |
| Net debt / EBITDANet debt / trailing EBITDA | 0.90x |
| Debt / equityTotal debt / positive book equity | 1.15x |
| Trailing P/ETrailing twelve-month earnings | 18.94x |
| Price / bookPrice / positive book equity per share | 5.69x |
| EV / salesEnterprise value / trailing revenue | 1.80x |
| Earnings growthLatest quarter vs prior-year quarter | 1,187.8% |
| Gross marginTrailing twelve months | 27.6% |
| Net marginTrailing twelve months | 10.4% |
| Return on equityProvider trailing return; positive equity only | 27.6% |
| Free cash flow marginTrailing free cash flow / revenue | -7.2% |
| Dividend yieldIndicated annual dividend / price | — |
| Earnings payoutProvider trailing dividend payout | 0.0% |
| Current ratioCurrent assets / current liabilities | 1.88x |
| BetaProvider historical market sensitivity | 2.88 |
Reviewed operating groups override broad sector classifications. Other companies are matched only within a sufficiently specific provider industry. Business mix, geography and accounting standards can still differ. Market caps are converted to USD using exchange rates captured during the snapshot refresh. Financial ratios that would mix currencies are omitted. Snapshots must be at most 14 days old and no more than seven days apart for automatic selection.
Peer medians require at least two valid similar-size peers for each metric. Negative earnings, nonpositive equity, missing data and irrelevant bank ratios are not presented as attractive valuations. A higher or lower number is not automatically a better investment. Financial statement periods are not calendar-aligned across companies.
Reported performance
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Standalone charts use the stated reporting currency. When a chart comparison spans currencies, money and EPS can be normalized to USD using a recent captured FX snapshot; this is for comparison only, not a historical FX restatement. Stock-based compensation is noncash. Free cash flow is operating cash flow less capital spending, which may include capitalized software. Missing metrics are not estimated or assumed to be zero. Banking and insurance ratios require industry-specific interpretation. Latest restatements may differ from figures in older episodes.
Market context
Price history loads separately.
Illustrative price = your earnings-per-share assumption × your P/E assumption. This is not a price target or a complete valuation model.
Starting assumptions, when available, use provider forward estimates as of 2026-11-11. Negative earnings require a different valuation method. This calculation omits balance-sheet, dilution and execution risks.
THE RESEARCH RECORD
FREE RESEARCH PACKET · Q4 FY2026
Penguin beat expectations and raised its outlook. Our research tests memory-led growth, working capital, dilution and valuation.
Research published October 6, 2026 · Download original report
Read Research PacketPresentation · 2026-10-06 · YouTube
Verify material figures against company filings. Market data and AI-assisted analysis may contain errors.
