Penguin Solutions, Inc. (PENG) Earnings Call Transcripts

Penguin Solutions, Inc.'s Latest Earnings Call - Q2 FY2026

In the second quarter of fiscal 2026, Penguin Solutions, Inc. reported net sales of $343 million, down 6% year-over-year, while non-GAAP diluted earnings per share remained flat at $0.52. The company raised its full-year guidance for net sales growth to 12% and non-GAAP EPS to $2.15, driven by strong demand in the integrated memory segment, which saw a 63% year-over-year increase. However, advanced computing sales were lower than expected, prompting a downward revision in guidance for that segment, reflecting a transition away from hyperscale customers.

Reported metrics

Guidance from management

Penguin Solutions raised its full-year net sales growth outlook to 12% and non-GAAP diluted EPS to $2.15, reflecting strong demand in the integrated memory segment. However, advanced computing sales are expected to decline between 15% and 25% year-over-year.

What management said

So overall, let me give you a data point. So the first half of this fiscal, our net sales grew about 50% year-over-year for non-hyperscale AI/HPC business, representing 40% of the overall mix of advanced computing, which is almost 2x of what we closed last fiscal. So the growth is substantial in terms of the bookings as well as the revenue that we see, and we expect that to continue. And as we continue to close the b...

Yes. Matt, no, no change in the philosophy. We -- Kash and I are very quickly aligned, I think, on how we think about tracking the business and looking at things. And in fact, I think with our new CRO, who came in a couple of quarters ago, he's done a nice job of adding some more rigor to the planning process in our AI business and just improving the visibility there a little bit. But it's a challenging environment f...

What analysts pressed on

Analysts expressed concerns regarding the decline in advanced computing sales and the impact of supply chain constraints on future revenue recognition. There were also questions about the sustainability of memory pricing and the potential effects on margins.

Main topics on the call

• Revenue Guidance Increase — Penguin Solutions raised its full-year net sales and EPS outlook, now projecting 12% growth and $2.15 EPS, up from 6% and $2.00, respectively. Management stated, "We are raising our outlook for our integrated memory busi...
• Advanced Computing Segment Decline — Advanced computing net sales were $116 million, down 42% year-over-year, attributed to the wind down of the Penguin Edge business and timing of large deployments. Management noted, "Our revenue lags about 3 to 6 months f...
• Strong Memory Demand — The integrated memory segment achieved net sales of $172 million, reflecting a 63% increase year-over-year. Management highlighted, "AI-driven demand remains strong across networking, telecommunications and computing mar...
• AI Infrastructure Transition — Management emphasized the shift towards AI inference workloads, stating, "AI is moving from experimentation to production with workloads increasingly shifting towards real-time inference." This transition is expected to ...

Read the full Penguin Solutions, Inc. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 31 Penguin Solutions, Inc. earnings call transcripts on record, spanning April 7, 2020 to July 7, 2026. Based on this history, Penguin Solutions, Inc. reports quarterly. The most recent call on file is dated July 7, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

PENG

Exchange

NasdaqGS

Country

US

Sector

Information Technology

Industry

Semiconductors and Semiconductor Equipment

Calls on record

31

First call

April 7, 2020

Most recent

July 7, 2026

Reporting cadence

quarterly