Penguin Solutions shares jump on earnings beat

Penguin Solutions stock climbed 17.9% in morning trading Wednesday after the company reported fiscal fourth-quarter 2026 results that exceeded Wall Street expectations and raised its outlook for the coming year.

The company posted adjusted earnings of $1.00 per share on revenue of $567 million. Analysts had expected earnings of $0.77 per share and revenue of $519.9 million.

For fiscal 2027, Penguin Solutions issued guidance calling for revenue of approximately $2.43 billion and earnings per share of $4.45. Analysts had forecast revenue of roughly $2.21 billion and earnings of $3.38 per share.

AI-driven businesses generated 78% of quarterly revenue and grew 141% year-over-year. Total quarterly sales increased 68% from the prior year. The company reported records across net sales, operating income, and adjusted EBITDA.

Penguin Solutions also announced the appointment of Stephen Cumming as Senior Vice President and Chief Financial Officer. Cumming replaces the interim CFO and brings semiconductor-industry financial experience to the role.

Rosenblatt raised its price target on the stock to $100 from $80. Needham, Stifel, and Goldman Sachs each lifted their targets to $85. All firms maintained Buy ratings.

You May Also Be Interested In

• Penguin Solutions (PENG) PT Raised to $85 at Stifel as Q4 Results Exceed Estimates
• Penguin Solutions (PENG) PT Raised to $100 at Rosenblatt
• Microsoft introduces AI coding model that can run on indivdual laptops - event