Penguin Solutions Reports Record Q4 With Sales Up 68%, Raises FY27 Guidance 40% on AI Demand Surge

Penguin Solutions posted record fiscal fourth-quarter results on October 6, with net sales rising 68% year over year to $567 million and non-GAAP earnings per share climbing 133% to $1.00, both beating Wall Street estimates. The company simultaneously appointed Stephen Cumming as Senior Vice President and Chief Financial Officer, effective immediately, filling the role that had been held on an interim basis since July.

The results were powered by surging demand across AI-linked product lines. Integrated Memory sales jumped 158% year over year, while non-hyperscale AI infrastructure revenue grew 99%, reflecting broadening demand beyond hyperscalers into neocloud customers. A 36,000-GPU deal disclosed alongside earnings appears to be tied to Anthropic, according to Benzinga, underscoring the company's deepening role in frontier AI build-outs.

Management raised its fiscal 2027 revenue guidance to approximately 40% growth at the midpoint, with non-GAAP EPS expected to expand roughly 55%, implying meaningful operating leverage. The upbeat outlook prompted multiple analyst upgrades and target increases: Jefferies maintained a Buy and lifted its target to $32, Rosenblatt raised its price target citing AI growth, and Stifel also increased its target. Citizens reiterated its rating following the guidance increase.

Shares jumped nearly 7% in premarket trading on October 7, with more than 850,000 shares changing hands before the open, and continued higher into the regular session, gaining roughly 3-4% by midday. The move reflected investor confidence that AI-driven demand is spreading beyond GPU procurement into the memory and compute infrastructure that supports inference workloads, a transition from which Penguin is positioned to benefit.