WEBULL

Penguin Solutions (PENG) Is Up 7.6% After Beating Q4 Profit Views And Reaffirming 2026 Guidance

Simply Wall St · 4d ago
  • PENGUIN SOLUTIONS, Inc. recently reported Q4 2025 results with flat year-on-year revenue of US$343.1 million, beating profit expectations and reaffirming full-year 2026 earnings guidance, including a 6% net sales growth outlook and an Adjusted EPS target of US$2 at the midpoint.
  • Management’s ability to exceed profit forecasts while holding guidance steady and reducing Days Inventory Outstanding from 96 to 79 highlights tighter operational control during a pause in top-line expansion.
  • We’ll now examine how reaffirmed earnings guidance alongside stronger-than-expected profitability reshapes Penguin Solutions’ investment narrative and risk-reward balance.

The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 25 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

Penguin Solutions Investment Narrative Recap

To own Penguin Solutions, you need to believe its exposure to AI and high performance computing can translate into steadier growth and improving profitability, despite lumpier project-driven revenue. The latest quarter supports that case on execution rather than acceleration: management beat profit forecasts, tightened inventory, and reaffirmed its 2026 outlook, but flat sales mean the key near term catalyst remains clearer demand visibility, while revenue lumpiness in Advanced Computing is still the most immediate risk.

Against this backdrop, the reaffirmed 2026 guidance for around 6% net sales growth and Adjusted EPS of US$2 at the midpoint is the news that matters most right now. It signals that, even with recent quarterly volatility and past revenue estimate misses, Penguin is still aiming for incremental progress in earnings, which ties directly into the core catalyst of converting AI and data center demand into more consistent, solution-driven revenue.

Yet, beneath the reaffirmed outlook, investors should be aware of how concentrated, project-based deals in Advanced Computing could still...

Read the full narrative on Penguin Solutions (it's free!)

Penguin Solutions' narrative projects $1.8 billion revenue and $316.1 million earnings by 2028. This requires 10.4% yearly revenue growth and about a $331 million earnings increase from -$14.9 million today.

Uncover how Penguin Solutions' forecasts yield a $28.25 fair value, a 31% upside to its current price.

Exploring Other Perspectives

PENG 1-Year Stock Price Chart
PENG 1-Year Stock Price Chart

Seven members of the Simply Wall St Community currently estimate Penguin’s fair value between about US$26 and US$156, reflecting very different expectations. When you set those views against the company’s reaffirmed but modest 6 percent 2026 sales growth outlook, it underlines how differently investors can interpret the same risk of ongoing revenue lumpiness and its impact on long term performance.

Explore 7 other fair value estimates on Penguin Solutions - why the stock might be worth just $25.95!

Build Your Own Penguin Solutions Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

Curious About Other Options?

Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.