Penguin Solutions Reports Q1 Revenue of $343M, Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
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Source: Benzinga
- Performance Exceeds Expectations: Penguin Solutions reported Q1 revenue of $343 million, surpassing market expectations of $338.4 million, indicating steady progress in AI and boosting investor confidence.
- Profitability Improvement: Non-GAAP earnings per share reached 49 cents, exceeding the expected 44 cents, demonstrating significant achievements in cost control and operational efficiency, which further solidifies its market position.
- Growth Drivers: Advanced Computing revenues grew 52% year-on-year, and as the company reduces its reliance on Meta, revenue growth is expected to accelerate, showcasing its potential in expanding its enterprise customer base.
- Optimistic Long-term Outlook: Management reaffirmed their full-year outlook with an expected revenue growth of around 6% and non-GAAP earnings of approximately $2.00 per share, reflecting confidence in future growth, particularly with Integrated Memory projected to exceed $600 million in fiscal 2026.
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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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