Penguin Solutions reported key accomplishments, including expanding their computing pipeline, adding new customers, and securing investments. In the fourth quarter, revenue was $338 million, up 9% YoY, with a non-GAAP gross margin of 30.9%. Revenue for the full year grew 17% YoY to $1.37 billion, with non-GAAP diluted EPS at $1.90, up 53% from fiscal 2024. Penguin Solutions is seeing broad AI adoption, particularly in sectors like financial services, energy, federal, and education.

The company’s revenue growth in the advanced computing segment is expected to be impacted by the wind-down of the Penguin Edge business. Non-hyperscale HPC AI revenue saw a 75% YoY increase, showcasing their customer diversification strategy. Their memory segment, selling products under the Smart Modular brand, delivered $132 million in revenue for the fourth quarter and $464 million for the full fiscal year, reflecting a 30% increase compared to fiscal 2024. Penguin Solutions differentiates its memory offerings through value-added services and software solutions.

Penguin Solutions continues to see early-stage corporate AI build-outs taking shape, with opportunities in financial services, federal, and education sectors. The company is focused on growing its enterprise customer base, driving innovation across hardware, software, and services, and expanding strategic partnerships for long-term success. Penguin Solutions is anticipating a 6%+ YoY growth in net sales for fiscal 2026, with a focus on enhancing shareholder value and sustaining profitable growth in the AI infrastructure space.

Read more at Yahoo Finance: Penguin Solutions (PENG) Earnings Transcript