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Penguin Solutions reported record fiscal fourth-quarter revenue and raised its fiscal 2027 forecast on October 6, citing stronger demand for AI infrastructure and data-center memory. The Fremont, California-based company said revenue for the quarter ended August 28 reached $566.7 million, up 68% from a year earlier, while non-GAAP diluted earnings per share rose to $1.00 from 43 cents.
Investing.com reported that shares had gained 16.8% over the week around the results. The company’s earnings release confirmed the financial figures and forecast, but did not itself establish that weekly share-price change. The results matter because they mark a sharp acceleration from a relatively flat first half of fiscal 2026 and give investors a larger revenue target against which to assess the AI infrastructure supplier’s expansion.
Revenue and earnings climbed to quarterly records
Penguin reported fourth-quarter GAAP net income attributable to the company of $93.2 million, compared with $9.4 million in the year-earlier quarter. GAAP diluted earnings per share were $1.29, versus 11 cents. The company also reported non-GAAP operating income of $89.8 million and adjusted EBITDA of $93 million, both records; non-GAAP measures exclude specified items and are not calculated on the same basis as GAAP results.
For the full fiscal year, revenue increased 26% to $1.73 billion, and non-GAAP diluted earnings per share rose 51% to $2.87. The company’s segment figures show Integrated Memory revenue nearly doubled to $924 million, while Advanced Computing revenue declined to $559 million from $648 million. Optimized LED revenue was $249 million, down from $256 million. The mix illustrates that fiscal-year growth was not uniform across its businesses.
Management raised its fiscal 2027 targets
The company now expects fiscal 2027 revenue of about $2.43 billion at the midpoint, equivalent to roughly 40% growth, with a range of plus or minus 10 percentage points. Its prior preliminary view, shared during the third-quarter call, had pointed to approximately 30% growth and a $2.17 billion revenue midpoint.
Penguin forecast fiscal 2027 GAAP diluted earnings per share of $3.50, plus or minus 70 cents, and non-GAAP diluted earnings per share of $4.45, also plus or minus 70 cents. The company’s midpoint estimate for non-GAAP earnings implies about 55% growth, according to its release. These are management forecasts, not reported results, and depend on future sales, product mix, customer deployments and other factors.
Chief Executive Kash Shaikh said growth accelerated from 48% in the third quarter to 68% in the fourth, producing second-half growth of 58%. He attributed the improvement to the launch of the company’s AI Factory Platform and a sharper focus on data-center customers, including neocloud providers and enterprises.
Customer wins point to larger deployments
Penguin said it added six AI infrastructure data-center customers in the fourth quarter, four of them neocloud providers. Across fiscal 2026, the company added 17 AI infrastructure customers, while 12 existing customers expanded their business with Penguin. Those counts describe customer wins and expansions; they do not specify the timing or amount of revenue each will produce.
Among the announced engagements, Penguin said it had been selected to deploy and operate a 36,000-GPU AI factory in Norway for a neocloud customer with $10 billion in contracted compute from a leading AI lab. The customer contract value is not Penguin revenue: the release describes it as contracted compute for the customer, not an amount payable to Penguin.
The company also cited a publicly traded neocloud customer with more than $3 billion in signed, multi-year contracts for AI infrastructure deployment and round-the-clock operations services. Penguin said its ClusterWareAI software would support that work. The announcement did not set out a schedule for recognizing revenue from the contract.
Memory, financing and leadership changes
Integrated Memory was a major contributor to the year’s reported growth, with fiscal 2026 sales of $924 million compared with $464 million a year earlier. In its release, Penguin said memory demand remained strong and disclosed a new supply arrangement intended to improve availability as data-center demand grows. The company also said it had established an additional AI infrastructure supplier relationship.
Penguin disclosed that it closed an oversubscribed $750 million convertible senior notes offering due in 2031, carrying a 0% coupon. Convertible notes can later be exchanged for shares under specified terms, but the announcement did not detail the potential dilution here. The company described the financing as supporting its needs amid growing demand; it remains distinct from operating cash generated by the business.
In a separate October 6 announcement, Penguin named Stephen Cumming senior vice president and chief financial officer, effective immediately. He most recently held the CFO role at Edgio and previously served in finance leadership positions at Cambium Networks, Kenandy and semiconductor companies. Aaron Johnson, interim CFO since July, is returning to his role as vice president of finance and accounting.
What comes next
Penguin held its fiscal fourth-quarter and full-year results call on October 6. Its next stated financial benchmark is fiscal 2027, for which it has supplied annual guidance rather than a specific near-term deployment timetable. The company’s reported customer additions, raised outlook and record quarter offer concrete indicators of demand, while the pace at which bookings and large projects convert into recognized revenue remains a key unknown.
