Penguin Solutions Posts Record Q4 with 68% Revenue Surge, Raises Fiscal 2027 Outlook Above Prior Guidance

Penguin Solutions (Nasdaq: PENG) reported record fourth-quarter fiscal 2026 results on October 6, with net sales of $567 million, up 68% year over year, for the quarter ended August 28, 2026. Non-GAAP diluted EPS came in at $1.00, beating the FactSet consensus estimate of $0.77 by $0.23 and more than doubling the year-ago figure of $0.43. GAAP diluted EPS reached $1.29, compared with $0.11 a year earlier, a gain of more than 1,000%. Operating income for the quarter hit $69 million, up 458% year over year, and adjusted EBITDA reached $93 million, up 115%.

For the full fiscal year 2026, the company posted net sales of $1.73 billion, up 26%, with record non-GAAP operating income of $241 million, up 44%, and net income of $181 million, up 611%. Full-year non-GAAP diluted EPS was $2.87, up 51% from $1.90 the prior year. CEO Kash Shaikh attributed the acceleration to the launch of the AI Factory Platform and a sharpened focus on neocloud and enterprise data center customers, noting that growth was roughly flat in the first half before surging 48% in Q3 and 68% in Q4.

Alongside the results, Penguin raised its fiscal 2027 full-year outlook above the preliminary 30% growth target it had set during last quarter's earnings call. The company now targets net sales of approximately $2.43 billion at the midpoint, representing roughly 40% growth, plus or minus 10 percentage points, up from the prior preliminary implied figure of $2.17 billion. GAAP diluted EPS guidance for fiscal 2027 was set at $3.50. The company also appointed Stephen Cumming as Senior Vice President and Chief Financial Officer, effective immediately. Shares rose approximately 4% on the news, with the stock last trading near $60.71 before the earnings release.