Penguin Solutions Reports Q1 Revenue of $343 Million, Up 1% Year-over-Year
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2026
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Source: Yahoo Finance
- Revenue Growth: Penguin Solutions reported Q1 revenue of $343 million, reflecting a 2% sequential increase and a 1% year-over-year rise, despite not recognizing any hyperscale hardware revenue, indicating stability in the market.
- Margin Performance: The non-GAAP gross margin stood at 30%, showcasing favorable product mix and execution, although it decreased by 0.8 percentage points year-over-year, highlighting a gradual wind-down of high-margin businesses.
- Advanced Computing Business: The Advanced Computing segment generated $151 million in revenue, up 9% from the previous quarter, with new customer bookings in defense and education sectors, demonstrating sustained demand for high-performance AI computing solutions.
- LED Business Challenges: The Optimized LED segment reported revenue of $55 million, down 18% sequentially, primarily due to weak demand in China and among certain large US OEM customers, impacting overall revenue predictability.
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Analyst Views on PENG
Wall Street analysts forecast PENG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PENG is 26.00 USD with a low forecast of 23.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 19.720
Low
23.00
Averages
26.00
High
30.00
Current: 19.720
Low
23.00
Averages
26.00
High
30.00
About PENG
Penguin Solutions, Inc. is an end-to-end technology company. The Company’s Advanced Computing segment, under its Penguin Computing and Stratus brands, offers specialized platform solutions and services for artificial intelligence, high-performance computing, machine learning, advanced modeling and the Internet of things that span the continuum of edge, core and cloud. Its Integrated Memory segment, under its SMART Modular Technologies brand, provides high-performance and reliable integrated memory solutions through the design, development and advanced packaging of leading-edge to extended lifecycle products. Its Optimized LED segment, under its Cree LED brand, offers a broad portfolio of application-optimized LEDs focused on improving lumen density, intensity, efficacy, optical control and/or reliability. The Company’s LED products enable its customers to develop and market LED-based products for general lighting, video displays and specialty lighting applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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