PENG

Oddity Tech (ODD) came out with quarterly earnings of $0.2 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +66.67%. A quarter ago, it was expected that this online retailer of cosmetics and beauty products would post a loss of $0.04 per share when it actually produced a loss of $0.17, delivering a surprise of -325%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Oddity Tech, which belongs to the Zacks Internet - Software industry, posted revenues of $180.52 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.27%. This compares to year-ago revenues of $241.14 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Oddity Tech shares have lost about 67.6% since the beginning of the year versus the S&P 500's gain of 12.1%. While Oddity Tech has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Oddity Tech was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $118.35 million in revenues for the coming quarter and $0.06 on $619.4 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Penguin Solutions, Inc. (PENG), has yet to report results for the quarter ended August 2026. This company is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of +74.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Penguin Solutions, Inc.'s revenues are expected to be $512.5 million, up 51.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ODDITY Tech Ltd. (ODD) : Free Stock Analysis Report Penguin Solutions, Inc. (PENG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Braze, Inc. (BRZE) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +18.75%. A quarter ago, it was expected that this company would post earnings of $0.1 per share when it actually produced earnings of $0.1, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Braze, which belongs to the Zacks Internet - Software industry, posted revenues of $227.23 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 3.19%. This compares to year-ago revenues of $180.11 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Braze shares have lost about 6.8% since the beginning of the year versus the S&P 500's gain of 12.8%. While Braze has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Braze was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $227.39 million in revenues for the coming quarter and $0.63 on $897.63 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Penguin Solutions, Inc. (PENG), another stock in the same industry, has yet to report results for the quarter ended August 2026. This company is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of +74.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Penguin Solutions, Inc.'s revenues are expected to be $512.5 million, up 51.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Braze, Inc. (BRZE) : Free Stock Analysis Report Penguin Solutions, Inc. (PENG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Investing.com -- Barclays turned more selective on U.S. semiconductor stocks ahead of the second-quarter earnings season, upgrading Lumentum Holdings while downgrading Allegro MicroSystems and Penguin Solutions, saying strong artificial intelligence-related gains have left limited room for further upside across much of the sector. The brokerage upgraded Lumentum to Overweight from Equal Weight, citing improving confidence in demand for AI networking components and stronger earnings potential. It also reiterated Overweight on Credo Technology and maintained Equal Weight on Astera Labs despite raising its price target, reflecting expectations that AI spending will remain a key growth driver. The rating changes underscore Barclays' view that while AI infrastructure spending continues to support the semiconductor sector, rich valuations have raised the bar for earnings-driven upside. The brokerage favors companies with clearer exposure to AI networking demand, while cautioning that stocks trading on longer-term themes such as robotics and enterprise AI may have moved ahead of their near-term fundamentals. Barclays downgraded Allegro MicroSystems to Equal Weight from Overweight, arguing that the stock's valuation already reflects optimism around its data center opportunity while its core automotive business remains weak. The bank said data center revenue is growing rapidly but is unlikely to fully offset sluggish auto demand in the near term, while meaningful robotics revenue is not expected until around 2030. The brokerage also cut Penguin Solutions to Underweight from Equal Weight, saying the stock's sharp rally has outpaced fundamentals. Barclays said the company's recent earnings strength has been driven primarily by higher memory prices rather than sustainable growth in advanced computing, while emerging opportunities such as Compute Express Link (CXL) and enterprise AI are still too early to justify its premium valuation. Looking across the sector, Barclays said investor expectations heading into earnings remain elevated after a strong first half driven by AI infrastructure spending. While demand for memory, optics and AI networking continues to improve, the firm warned that many semiconductor stocks already price in optimistic growth assumptions, making it harder for earnings results alone to drive another leg higher. Related articles Barclays upgrades Lumentum, cuts Allegro, Penguin before chip earnings Nvidia's new Alpamayo project: What it means for Tesla? 5 reasons why Jefferies thinks Meta’s pullback is a buying opportunity

Investors might want to bet on Penguin Solutions, Inc. (PENG), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook. Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Penguin Solutions, Inc., there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The earnings estimate of $0.75 per share for the current quarter represents a change of +74.4% from the number reported a year ago. Over the last 30 days, one estimate has moved higher for Penguin Solutions, Inc. compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 19.61%. For the full year, the earnings estimate of $2.60 per share represents a change of +36.8% from the year-ago number. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Penguin Solutions, Inc.. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 16.2%. Thanks to promising estimate revisions, Penguin Solutions, Inc. currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Penguin Solutions, Inc. because of its solid estimate revisions, as evident from the stock's 22.2% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penguin Solutions, Inc. (PENG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Penguin Solutions, Inc.? Here are five stocks we like better. Penguin Solutions delivered record fiscal Q3 results, with net sales rising 48% year over year to $479 million and non-GAAP EPS up 79% to $0.84. AI-related businesses made up 74% of sales and grew 104% from a year earlier. The company raised its full-year fiscal 2026 outlook, now targeting 22% net sales growth and non-GAAP diluted EPS of $2.60 at the midpoint, up from a prior forecast of 12% growth and $2.15 EPS. It also lifted its gross margin outlook to 28.5% plus or minus 0.5 percentage points. AI infrastructure and memory demand remain the main growth drivers, with Integrated Memory sales more than doubling and the company seeing stronger adoption of its AI factory platform. Penguin added four new AI infrastructure customer logos in the quarter and said it expects about 30% growth in both sales and EPS in fiscal 2027 from the midpoint of its updated 2026 outlook. Why Penguin Solutions May Be the Smartest AI Infrastructure Stock Penguin Solutions (NASDAQ:PENG) reported record fiscal third-quarter results and raised its full-year outlook, citing accelerating demand tied to artificial intelligence infrastructure and memory products. Chief Executive Officer Kash Shaikh told investors that the company delivered “an exceptional quarter” with record net sales and “significantly higher than anticipated” earnings per share. He said Penguin’s AI-driven businesses accounted for 74% of total company net sales in the quarter and grew 104% year over year. → SK Hynix’s Nasdaq Listing Could Reset the AI Memory Trade Why Penguin Solutions Is Rallying as AI Data Centers Scale “This gives us confidence that the AI opportunity is expanding as enterprises increasingly adopt agentic AI workloads powered by inference at scale,” Shaikh said. For the third quarter of fiscal 2026, Penguin Solutions reported total net sales of $479 million, up 48% from a year earlier and 40% sequentially. Non-GAAP operating income reached $64 million, a third-quarter record and up 67% year over year. Non-GAAP diluted earnings per share were $0.84, up 79% from the prior-year quarter and 62% from the previous quarter. → 2 Short Squeezes for Summer Speculation: What the Bears Are Getting Wrong Penguin Solutions Gains Traction: Is Now the Time to Buy? Chief Financial Officer Nate Olmstead said both sales and profits were “significantly higher than expected,” driven primarily by accelerating AI-related demand for memory products and continued adoption of AI infrastructure solutions. By segment, Integrated Memory generated $275 million in net sales, representing 57% of total company sales and rising 111% year over year. Advanced Computing generated $138 million, up 4% year over year and 19% sequentially. Within Advanced Computing, the non-hyperscale AI infrastructure business grew 81% year over year and represented 58% of segment sales, compared with 33% a year earlier. Optimized LED sales totaled $66 million, up 7% year over year. → How TeraWulf’s Anthropic Deal Booted Up a $19B AI Empire Non-GAAP gross margin was 28.1%, down 3.6 percentage points from the year-earlier quarter. Olmstead said the decline was primarily due to the ongoing wind down of the Penguin Edge business and changes in sales mix, partially offset by favorable pricing in Integrated Memory. Non-GAAP operating expenses rose 9% year over year to $70 million, reflecting seasonality, higher R&D spending and increased variable compensation tied to the company’s performance. Penguin increased its full-year fiscal 2026 outlook for both net sales and non-GAAP diluted EPS. At the midpoint, the updated outlook calls for 22% net sales growth and non-GAAP diluted EPS of $2.60, compared with the prior outlook of 12% sales growth and $2.15 in EPS. Olmstead said the improved outlook reflects strong performance through the first nine months of the fiscal year and a better fourth-quarter outlook for the memory business. The company now expects Integrated Memory sales to grow 90% to 95% year over year, up from its previous outlook. Advanced Computing sales are expected to decline 15% to 20% year over year, reflecting the wind down of Penguin Edge and the absence of Advanced Computing AI hardware sales to hyperscale customers. Optimized LED sales are expected to decline about 5% for the full year. The company also raised its full-year non-GAAP gross margin outlook to 28.5%, plus or minus 0.5 percentage points, citing favorable memory pricing in the third quarter. However, Olmstead said the fourth-quarter outlook assumes less pricing favorability than in the third quarter, creating some expected downward pressure on gross margins as the fiscal year ends. Penguin also offered preliminary fiscal 2027 commentary, saying its initial planning view contemplates total company net sales growth and non-GAAP EPS growth of about 30% from the midpoint of the fiscal 2026 outlook. Olmstead said the company expects to provide a full fiscal 2027 outlook on its next earnings call. Shaikh framed the company’s growth around the shift from early AI use cases to production-scale inference and agentic AI. He said early AI systems largely answered questions, while agentic AI “performs work” across persistent, context-rich and task-oriented workflows. According to Shaikh, this shift is increasing demand not only for GPUs and high-bandwidth memory, but also for CPUs, storage, networking and general-purpose memory. He said Penguin believes memory is becoming “one of the primary bottlenecks” for large-context AI inference performance. The company highlighted its AI factory platform, which includes ClusterWareAI software, MemoryAI and integrated memory products, ComputeAI systems, OriginAI reference architectures and design, build, deploy and managed services. Shaikh said customers increasingly need more than hardware procurement and are seeking systems that can perform at production scale and improve time to revenue. Penguin said it added four new AI infrastructure customer logos during the quarter. Shaikh said that among 13 AI infrastructure logos added over the trailing four quarters from the third quarter of fiscal 2025 through the second quarter of fiscal 2026, seven had already increased their business with the company. The company also cited expanded engagements with Deepgram and a previously disclosed tier 1 financial institution. Shaikh said the financial customer purchased additional MemoryAI KV cache servers in the third quarter for an on-premises AI factory focused initially on inference and agentic AI for code generation using open-weight large language models. Penguin ended the quarter with $440 million in cash, cash equivalents and short-term investments, down $49 million sequentially. Olmstead said the sequential decline was primarily due to working capital investments to support growth, partially offset by approximately $40 million in proceeds from the disposition of the company’s 19% equity investment in Zilia Technologies. Net accounts receivable totaled $704 million, up from $293 million a year earlier, driven by higher memory sales volumes and prices. Inventory rose to $498 million from $184 million a year ago, reflecting higher memory costs, growth in the memory and AI infrastructure businesses and strategic purchases for anticipated future demand. Accounts payable increased to $736 million from $272 million. Operating cash flow was a use of $75 million in the quarter, compared with $97 million provided by operations in the prior-year period. Penguin also repurchased approximately 466,000 shares for $9 million during the quarter and had $56 million remaining under its repurchase authorizations as of May 29, 2026. Shaikh also addressed Penguin’s finance leadership transition. Olmstead will step down as CFO on July 8 to pursue an opportunity in a different industry. Aaron Johnson, vice president of finance and accounting, will serve as interim CFO beginning July 9 while the company searches for a permanent replacement. Shaikh said the transition does not change Penguin’s operating priorities, financial discipline or focus on execution. During the question-and-answer session, he said the company is conducting a formal search with an executive search firm and is considering both internal and external candidates. Olmstead said he expects a “very smooth transition” with Johnson, calling him his “right-hand person” over the past two years. Penguin Solutions, Inc engages in the designing and development of enterprise solutions worldwide. It operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers dynamic random access memory modules, solid-state and flash storage, and other advanced integrated memory solutions for networking and telecom, data analytics, artificial intelligence and machine learning applications; and supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Penguin Solutions Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Penguin Solutions, Inc. PENG used its third-quarter fiscal 2026 earnings call to press a simple message: AI demand is broadening, backlog is building and the company sees itself moving from component supplier to AI factory platform provider. That mattered because management did more than post a beat. It raised full-year targets again, offered an initial fiscal 2027 growth view and used the Q&A to frame memory demand as structural rather than cyclical. Chief executive officer Kash Shaikh said AI-driven businesses made up 74% of total net sales in the quarter and grew 104% year over year. He said demand in integrated memory and non-hyperscale AI infrastructure continued to outpace reported sales, leaving the company with a larger backlog entering the fiscal fourth quarter. That framing helped explain why the quarter landed well ahead of expectations. PENG reported non-GAAP EPS of $0.84, beating the Zacks Consensus Estimate of $0.63. Revenues came in at $478.7 million, also surpassing the consensus estimate of $435 million. Penguin Solutions, Inc. price-consensus-eps-surprise-chart | Penguin Solutions, Inc. Quote Shaikh tied the demand picture to inference and agentic AI rather than to a short-lived hardware cycle. He argued that persistent, context-rich workloads are raising requirements for memory, general-purpose compute, storage and networking across the stack. Shaikh spent much of the prepared remarks describing Penguin as an AI factory platform company built around ClusterWareAI software, MemoryAI products, ComputeAI systems, OriginAI architectures, and deployment and managed services. His emphasis was that customers increasingly want an integrated path to production, not a collection of parts. Management pointed to customer and partner traction to support that argument. The company added four new AI infrastructure logos in the fiscal third quarter, expanded work with Deepgram, widened an engagement with a Tier 1 financial institution and highlighted recent recognition from NVIDIA and Dell. The call also underscored services as a differentiator. Shaikh said Penguin is designing, building, deploying and in some cases managing AI factories for three to five years, which he framed as an advantage over sellers that only ship hardware. Chief financial officer Nate Olmstead said both sales and profits came in significantly above the company's expectations, helped by accelerating memory demand and continued AI infrastructure adoption. Non-GAAP operating income reached a quarterly record of $64.4 million, while non-GAAP operating margin improved to 13.4% from 11.9% a year earlier. The bigger takeaway was the new outlook. Penguin now expects fiscal 2026 net sales growth of 22% plus or minus 2% and non-GAAP EPS of about $2.60, plus or minus $0.05, up from the prior view of 12% growth and $2.15. Olmstead also gave preliminary color for fiscal 2027, saying the company currently contemplates about 30% growth in both total company net sales and non-GAAP EPS from the midpoint of the fiscal 2026 outlook. He called that an initial planning view rather than formal guidance. The quarter was not without trade-offs. Non-GAAP gross margin fell to 28.1% from 31.7% a year ago as the mix shifted and the higher-margin Penguin Edge business continued to wind down, though favorable memory pricing provided some support. Operating expenses also moved higher, reflecting seasonal factors, variable compensation, and increased research and development spending tied to ClusterWareAI and memory AI offerings. That suggests management is still investing aggressively even as it stresses discipline. Olmstead said the fiscal 2026 outlook still assumes no advanced computing AI hardware sales to hyperscale customers and reflects Edge revenues essentially ceasing by year-end. He also warned that the fiscal fourth quarter should see less pricing favorability than the fiscal third quarter, which could pressure gross margin as the year closes. Analysts pressed management on how much of the memory upside came from pricing versus product demand. Shaikh answered that both volume and pricing lifted the outlook, while stressing that CXL is growing but remains only part of a broader data center memory business. A Stifel analyst asked for guardrails around advanced computing in fiscal 2027. Olmstead said mid-teens growth is a reasonable starting point, with first-half visibility supported by backlog and a three- to six-month bookings-to-revenue cycle in AI infrastructure. Questions also tested whether customer demand might crack under higher memory prices. Shaikh pushed back, saying demand continues to rise and backlog continues to build, reinforcing management’s more confident tone around durability. The call also carried a leadership transition, with Olmstead stepping down as CFO and vice president of Finance and Accounting, and Aaron Johnson becoming interim CFO. Shaikh said the change does not alter operating priorities, financial discipline or execution plans. Taken together, management left investors with a company leaning harder into AI memory, software and infrastructure while trying to widen its customer base beyond hyperscale concentration. The tone was assertive, but still centered on backlog conversion, supply execution and disciplined investment. PENG currently sports a Zacks Rank #1 (Strong Buy), which points to favorable earnings estimate revision trends over the next one to three months. Its Value Score of C, Growth Score of D, Momentum Score of B and VGM Score of D indicate a weaker style profile, with the strongest Zacks combinations generally coming from Rank #1 or #2 (Buy) stocks that also hold A or B Style Scores. You can see the complete list of today’s Zacks #1 Rank stocks here. That mix leaves the stock with strong rank support but less help from the Style Scores right now. The Zacks Rank can change as analysts update estimates after the quarter, so the post-earnings revision cycle remains the key signal to watch. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penguin Solutions, Inc. (PENG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Sales: $479 million, up 48% year-over-year and 40% sequentially. Non-GAAP Operating Income: $64 million, up 67% year-over-year. Non-GAAP Gross Margin: 28.1%, down 3.6 percentage points year-over-year. Non-GAAP Operating Margin: 13.4%, up 1.5 percentage points year-over-year. Non-GAAP Diluted EPS: $0.84, up 79% year-over-year and 62% sequentially. Advanced Computing Net Sales: $138 million, up 4% year-over-year. Integrated Memory Net Sales: $275 million, up 111% year-over-year. Optimized LED Net Sales: $66 million, up 7% year-over-year. Adjusted EBITDA: $68 million, up 51% year-over-year. Cash Equivalents and Short-term Investments: $440 million, down $295 million year-over-year. Inventory: $498 million, up from $184 million a year ago. Accounts Receivable: $704 million, up from $293 million a year ago. Accounts Payable: $736 million, up from $272 million a year ago. Cash Flow from Operating Activities: -$75 million, compared to $97 million provided in the prior year quarter. Capital Expenditures: $3 million in the quarter. Depreciation: $5 million for the quarter. Stock Repurchase: $9 million spent to repurchase approximately 466,000 shares. Full-Year Net Sales Growth Outlook: 22% growth, up from previous 12% outlook. Full-Year Non-GAAP Diluted EPS Outlook: $2.60, up from previous $2.15 outlook. Non-GAAP Tax Rate: 20%, down from 22%. Warning! GuruFocus has detected 3 Warning Sign with KRUS. Is PENG fairly valued? Test your thesis with our free DCF calculator. Release Date: July 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Penguin Solutions Inc (NASDAQ:PENG) delivered record net sales of $479 million, up 48% year-over-year, driven by strong AI-driven demand. The company's AI-driven businesses represented 74% of total net sales and grew 104% year-over-year, showcasing significant growth in this sector. Penguin Solutions raised its full-year outlook for both net sales and EPS, indicating confidence in continued strong performance. The company added four new AI infrastructure customer logos in Q3, demonstrating successful expansion of its customer base. Penguin Solutions was recognized as an NVIDIA AI Factory Specialized Partner and the 2026 Dell Technologies Global Alliances Americas AI Partner of the Year, highlighting its industry leadership and strong partnerships. Non-GAAP gross margin decreased by 3.6 percentage points year-over-year, primarily due to the wind-down of the Penguin Edge business and a shift in sales mix. The company is experiencing ongoing supply chain constraints and higher memory costs, which could impact future growth and margins. Penguin Solutions is undergoing a finance leadership transition with the departure of CFO Nate Olmstead, which could pose challenges during the transition period. The company's LED business saw only a modest 7% year-over-year growth, indicating slower performance compared to other segments. Despite strong demand, the company faces extended lead times for certain components, which could affect the speed of fulfilling customer orders and ramping up new projects. Q: Can you discuss the factors driving the raised guidance for integrated memory, particularly the impact of pricing versus demand for new products like CXL cards? Also, how does the broadening customer base, including hyperscale, contribute to the fiscal '27 outlook? A: The raised outlook considers both volume and pricing. CXL is a growing part of our business, but the majority is data center-focused products for OEM customers. A hyperscaler is among our customers, but it's just a portion of our overall business. The fiscal '27 outlook doesn't heavily rely on this hyperscale customer, maintaining a consistent run rate from FY '26. Q: With memory revenue potentially reaching $300 million quarterly, what growth can we expect for advanced computing in fiscal '27? A: For advanced computing, we anticipate mid-teens growth, driven by the non-hyperscale AI infrastructure business. The impact from the wind-down of the edge business and transition away from meta will be less pronounced, allowing growth from non-hyperscale AI infrastructure to come through. Q: How does the order-to-revenue cycle in advanced computing affect fiscal '27, considering potential component scarcity? A: The bookings for AI infrastructure within advanced computing will deliver revenues into the first half of next year, with a bookings-to-revenue lag of about three to six months. This provides an advantage as we enter fiscal '27. Q: What are you seeing in terms of engagement from a services capability perspective with the broadening customer base in advanced solutions? A: Services are a strategic advantage, offering full system integration for AI factories, including design, build, deploy, and manage. This provides customers with ROI from our solutions. In the memory business, we're focusing on data centers where demand is growing due to agentic AI. Q: Can you elaborate on the enhancements to Clusterware with the AI factory operations agent and its potential for monetization? A: The AI agent simplifies cluster operations, providing automation for monitoring and deployment, enhancing our services' value. It allows customers to manage existing data centers more efficiently, creating opportunities to increase software revenues over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Penguin Solutions (PENG) is back on investors radar after its third quarter earnings topped revenue and profit expectations, and management raised full year adjusted EPS guidance alongside generally supportive analyst commentary. See our latest analysis for Penguin Solutions. Despite a sharp 1-day share price decline of 8% and a 7-day share price drop of 18.06% that followed the earnings move, Penguin Solutions is still coming off a very strong run, with a 90-day share price return of 181.58% and a 1-year total shareholder return of 193.94%, suggesting momentum has been powerful over the longer stretch. If Penguin Solutions has sharpened your interest in AI infrastructure, now is an interesting time to broaden your search with the 52 AI infrastructure stocks After that sharp pullback, Penguin Solutions is trading well above analyst targets but also coming off very strong share price and earnings momentum. Are investors now looking at upside still ahead, or a story where most gains are already behind? At a last close of $62.29 versus a narrative fair value of $38.29 using an 11.84% discount rate, Penguin Solutions is framed as pricing in a lot of future success already. This sets the stage for a detailed story about growth, margins, and execution. Read the complete narrative. Want to see what kind of revenue curve and margin profile have to line up with that AI demand story, and what future earnings multiple ties it all together? The most followed narrative lays out a detailed path for sales, profitability, and valuation expectations without leaving much room for guesswork. Result: Fair Value of $38.29 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still pressure points for Penguin Solutions, including lumpy Advanced Computing deals and tariff exposure in Optimized LED, which could challenge the bullish narrative. Find out about the key risks to this Penguin Solutions narrative. The main narrative argues Penguin Solutions is overvalued at a fair value of $38.29, but its current P/E of 83x versus a fair ratio of 96.8x tells a different story. The stock trades richer than the US Semiconductor industry at 65.3x and peers at 40.3x, yet below where the fair ratio suggests the P/E could move. For you, that mix of relative expensiveness and fair ratio headroom raises a simple question: is this pricing in too much, or not enough, future execution? See what the numbers say about this price — find out in our valuation breakdown. With mixed signals around valuation and momentum, it is worth taking a closer look at Penguin Solutions for yourself and acting while the story is still unfolding, especially as our data highlights both risks and potential rewards that investors are watching closely, so make time to weigh the 2 key rewards and 2 important warning signs. If Penguin Solutions has you thinking more seriously about where to put your capital next, do not sit on the sidelines while other opportunities pass by. Target potential mispricing by scanning a carefully filtered set of 45 high quality undervalued stocks that combine quality fundamentals with room for the market to reassess their worth. Prioritize resilience by reviewing 74 resilient stocks with low risk scores that aim to keep balance sheets and risk indicators front and center in your portfolio decisions. Hunt for tomorrow's standouts by checking the screener containing 18 high quality undiscovered gems that most investors are not paying attention to yet, before attention and liquidity fully arrive. 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. Companies discussed in this article include PENG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Penguin Solutions, Inc. (PENG) came out with quarterly earnings of $0.84 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +33.33%. A quarter ago, it was expected that this company would post earnings of $0.43 per share when it actually produced earnings of $0.52, delivering a surprise of +20.93%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Penguin Solutions, Inc., which belongs to the Zacks Internet - Software industry, posted revenues of $478.71 million for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 10.05%. This compares to year-ago revenues of $324.25 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Penguin Solutions, Inc. shares have added about 246.2% since the beginning of the year versus the S&P 500's gain of 10.1%. While Penguin Solutions, Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Penguin Solutions, Inc. was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.66 on $479 million in revenues for the coming quarter and $2.30 on $1.6 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, ZoomInfo (GTM), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of +8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. ZoomInfo's revenues are expected to be $301.25 million, down 1.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penguin Solutions, Inc. (PENG) : Free Stock Analysis Report ZoomInfo Technologies Inc. (GTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street is largely bullish on the company, with six of seven analysts covering the stock rating it a ‘Buy’ or higher, and one rating it a ‘Sell.’ Rosenblatt said on Monday it expects momentum in Penguin’s advanced computing and integrated memory product lines to accelerate heading into the second half of the year. The firm raised its price target on PENG stock to $75 from $65, implying roughly 11% upside from Monday’s closing price. Shares of AI infrastructure company Penguin Solutions (PENG) traded nearly 4% lower on Tuesday ahead of its fiscal third-quarter earnings report, with analysts remaining largely bullish on the company. According to data from Koyfin, the consensus revenue estimate is $421 million, implying roughly 30% year-over-year growth, while adjusted earnings per share (EPS) are expected to be $0.56. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Six of the seven analysts covering the stock rate it a ‘Buy’ or higher, and one rates it a ‘Sell,’ according to Koyfin data. Retail sentiment on Stocktwits has also remained ‘Bullish’ over the last 24 hours. Rosenblatt expects a “solid beat-and-raise” and momentum in its advanced computing and integrated memory product lines to accelerate heading into the second half of the year. Analyst Kevin Cassidy pointed out that investors have moved PENG’s valuation from 6.7x to 22.6x forward earnings over the past three months, as the AI market continues to rely on Penguin’s products and services. “For years, we have highlighted PENG shares as the best value in the AI market,” Cassidy said. “Corporations are realizing productivity gains through agentic workloads, which require increased CPU and GPU utilization and faster and denser memory configurations. Penguin's ability to design, build, deploy, and service AI systems for these workloads positions the company for this market.” Rosenblatt raised its price target on PENG stock to $75 from $65, implying roughly 11% upside from Monday’s closing price. PENG shares have more than doubled in value so far this year, outpacing the benchmark S&P index. In late June, the company was chosen by Nvidia (NVDA) as an “AI factory Specialized Partner” after successfully completing training and meeting the requirements to operate AI infrastructure powered by the chip giant’s GPUs. The company had said that Nvidia's certification validated its expertise in designing, building, deploying, and managing AI infrastructure for enterprises, hyperscale customers, and neocloud providers. For updates and corrections, email newsroom[at]stocktwits[dot]com Ahmed Farhath has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: NFLX, DIS, YouTube Want FIFA's World Cup US Rights — Why A $2B Bidding War Is Brewing FCEL Stock Plummets After-Hours On $200M Share Offering US Launches Heavy Retaliatory Airstrikes On Iran Following Series Of Attacks On Ships

Delivers Record Quarterly Results and Raises Full-Year Outlook for Both Net Sales and EPS, Reflecting AI-Driven Demand FREMONT, Calif., July 07, 2026--(BUSINESS WIRE)--Penguin Solutions, Inc. ("Penguin Solutions," "we," "us," or the "Company") (Nasdaq: PENG) today reported financial results for the third quarter of fiscal 2026. Third Quarter Financial Highlights Record net sales of $479 million, up 48% versus the year-ago quarter Record Q3 GAAP operating income of $51 million, up 417% versus the year-ago quarter Record Q3 Non-GAAP operating income of $64 million, up 67% versus the year-ago quarter Q3 GAAP diluted EPS of $0.68 versus $(0.01) in the year-ago quarter Q3 Non-GAAP diluted EPS of $0.84 versus $0.47 in the year-ago quarter, an increase of 79% "Penguin Solutions delivered a record quarter, exceeding expectations for both net sales and EPS. This profitable growth acceleration reinforces our confidence that our AI Factory Platform strategy is working. Integrated Memory net sales more than doubled year over year, and our AI Infrastructure business continued to build momentum, reflecting strong demand and execution across our memory and AI Infrastructure portfolio," said Kash Shaikh, CEO of Penguin Solutions. "We are seeing very strong AI-driven customer demand for memory and AI infrastructure solutions. As inference and agentic AI workloads become more persistent and context-rich, memory is increasingly becoming one of the primary performance and scalability bottlenecks. Penguin is well positioned at the intersection of memory and AI infrastructure to help customers address these evolving requirements. Given robust demand and disciplined execution, we are raising our full-year outlook for both net sales and EPS." Third Quarter Business Highlights Customer Wins Across Integrated Memory and AI Infrastructure: Continued to execute our land-and-expand strategy, converting new customer wins into expanded commercial relationships across both Integrated Memory and AI Infrastructure. Integrated Memory: Across the trailing four quarters from Q3-25 to Q2-26, we added 16 new logos, and five of those customers subsequently increased their business with us. AI Infrastructure: Added four new AI Infrastructure customer logos in Q3. Across the trailing four quarters from Q3-25 to Q2-26, we added 13 new logos, and seven of those customers subsequently increased their business with us. Key Technology and Market Leadership Milestones for Penguin’s AI Factory Platform: Recognized as Dell Technologies Global Alliances Americas AI Partner of the Year, highlighting Penguin’s role in delivering full-stack AI Factory Platforms that combine infrastructure software, advanced memory technologies, compute systems, and services. Became an NVIDIA AI Factory Specialized Partner, recognizing Penguin’s expertise in designing, building, deploying, and managing full-stack AI factory infrastructure for enterprise, sovereign AI, and neocloud environments. Expanded ClusterWareAI operating system software for AI factories with AI-powered operations. The new AI Factory Operations Agent provides administrators with a conversational interface using natural language queries. This agent is the first in a planned family of agentic AI-powered agents designed to automate AI cluster operations with a human-in-the-loop approach. Raised Fiscal 2026 Outlook Penguin Solutions is further raising its previously-issued improved financial outlook for full-year fiscal 2026, and as of July 7, 2026, expects both net sales and diluted EPS for full-year fiscal 2026 to be above the high end of its previously-issued outlook ranges. Supported by very strong agentic AI-driven customer demand across its Integrated Memory and AI Infrastructure businesses, Penguin Solutions now expects full-year fiscal 2026 net sales growth of 22% plus or minus 2%, full-year GAAP EPS of $1.97 plus or minus 5 cents, and full-year non-GAAP EPS of $2.60 plus or minus 5 cents. Quarterly Financial Results Business Outlook As of July 7, 2026, Penguin Solutions is providing the following financial outlook for fiscal year 2026: Third Quarter Fiscal 2026 Earnings Conference Call and Webcast Details Penguin Solutions will hold a conference call and webcast to discuss the third quarter fiscal 2026 results and related matters today, July 7, 2026, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). Interested parties may access the call by registering online at https://events.q4inc.com/attendee/735199556, at which time registrants will receive dial-in information as well as a conference ID. The live webcast will also be accessible from the Penguin Solutions investor relations website https://ir.penguinsolutions.com/investors/default.aspx on the Events page, along with the related earnings press release and slide presentation. The webcast replay will be made available on the Quarterly Results page after the call concludes. An archived version of the webcast will be available on the Penguin Solutions investor relations website for approximately one year after the webcast date. Use of Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 that are not historical in nature, that are predictive or that depend upon or refer to future events or conditions. These statements may include, but are not limited to, statements concerning or regarding future events and the future financial and operating performance of Penguin Solutions; statements regarding the extent and timing of and expectations regarding Penguin Solutions’ future net sales, sales mix, profitability and expenses; statements regarding Penguin Solutions’ strategic transformation, business momentum, and emerging leadership position; statements regarding AI-related demand, customer pipeline, market opportunities, industry trends and product performance; statements regarding projected demand for the fourth quarter of fiscal year 2026 and beyond; statements regarding long-term effective tax rates; and statements regarding the business and financial outlook for fiscal year 2026 described under "Business Outlook" above. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as "anticipate," "target," "expect," "estimate," "intend," "plan," "goal," "believe," "could," and other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results or aspirations and are subject to a number of significant risks, uncertainties and other factors, many of which are outside of our control, including but not limited to: global business and economic conditions, including the impact on the financial condition of our customers, particularly in challenging macroeconomic environments; growth and demand trends in technology industries (including trends and markets related to artificial intelligence), our customer markets and various geographic regions; uncertainties in the geopolitical environment, including those related to global conflicts, such as those in the Middle East and Ukraine, and the global effects thereof on international relations, transport, and trade; our ability to manage our cost structure; disruptions in our operations or supply chain as a result of global pandemics, tariffs, disruptions at our suppliers, or other factors; changes in trade regulations and tariffs or adverse developments in international trade relations and agreements; changes in currency exchange rates; overall information technology spending, including changes in customer spending on our products and services; appropriations for government spending; the success of our strategic initiatives including the U.S. Domestication (as defined below) and our ability to realize the anticipated benefits thereof, our rebranding and related strategy, any existing or potential collaborations and additional investments in new products and additional capacity; acquisitions of companies or technologies and the failure to successfully integrate and operate them or customers’ negative reactions to them; failure to achieve the intended benefits of the sale of Zilia Technologies Indústria e Comércio de Componentes Eletrônicos Ltda. (formerly SMART Modular Technologies do Brasil - Indústria e Comércio de Componentes Ltda.) and its business; the impact of and expected timing of winding down the manufacturing and discontinuing the sale of products offered through our Penguin Edge business; limitations on or changes in the availability of supply of materials and components; fluctuations in material costs; the temporary or volatile nature of pricing trends in memory or elsewhere; deterioration in customer relationships; our dependence on a select number of customers, and the timing and volume of customer orders and renewals; the impact of customer churn rates, including discounting and churn of significant customers from whom we derive a significant percentage of our revenue; changes in customer demand and sales mix; production or manufacturing difficulties; competitive factors; technological changes; difficulties with, or delays in, the introduction of new products; slowing or contraction of growth in the memory market, LED market or other markets in which we participate; changes to applicable tax regimes or rates; changes to the valuation allowance for our deferred tax assets, including any potential inability to realize these assets in the future; prices for the end products of our customers; strikes or labor disputes; deterioration in or loss of relations with any of our limited number of key vendors; the inability to maintain or expand government business; potential sales of our common stock by the holder of our issued convertible preferred stock or the anticipation of such sales; and the continuing availability of borrowings under revolving lines of credit or other debt arrangements and our ability to raise capital through debt or equity financings. These and other risks, uncertainties and factors are described in greater detail under the sections titled "Risk Factors," "Critical Accounting Estimates," "Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and "Liquidity and Capital Resources" contained in the Annual Report on Form 10-K for the fiscal year ended August 29, 2025, as updated by the risk factors, if any, contained in our Quarterly Reports on Form 10-Q and in our other filings with the U.S. Securities and Exchange Commission (the "SEC"). Such risks, uncertainties and factors as outlined above and in such filings could cause our actual results to be materially different from such forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we do not undertake to update the forward-looking statements contained in this press release to reflect the impact of circumstances or events that may arise after the date that the forward-looking statements were made. Statement Regarding Use of Non-GAAP Financial Measures This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP effective tax rate, non-GAAP net income attributable to Penguin Solutions, non-GAAP income available for distribution, non-GAAP net income available to common stockholders, non-GAAP weighted-average shares outstanding, non-GAAP diluted earnings per share and adjusted EBITDA. Penguin Solutions’ management uses these non-GAAP measures to supplement Penguin Solutions’ financial results under GAAP. Management uses these measures to analyze its operations and make decisions as to future operational plans and believes that this supplemental non-GAAP information is useful to investors in analyzing and assessing the Company’s past and future operating performance. These non-GAAP measures exclude certain items, such as stock-based compensation expense; amortization of acquisition-related intangible assets (consisting of amortization of developed technology, customer relationships and trademarks/trade names and backlog acquired in connection with business combinations); inventory write-off, stolen in-transit shipment, net of insurance recovery; cost of sales-related restructuring; diligence, acquisition and integration expense; redomiciliation costs; restructuring charges; (gain) loss on disposition of equity investments; (gain) loss on non-marketable equity investments; impairment of goodwill; changes in the fair value of contingent consideration; (gains) losses from changes in foreign currency exchange rates; amortization of debt issuance costs; (gain) loss on extinguishment or prepayment of debt; other infrequent or unusual items and related tax effects and other tax adjustments. While amortization of acquisition-related intangible assets is excluded, the revenues from acquired companies are reflected in the Company’s non-GAAP measures and these intangible assets contribute to revenue generation. Management believes the presentation of operating results that exclude certain items provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses adjusted EBITDA, which represents GAAP net income (loss), adjusted for net interest expense; income tax provision (benefit); depreciation expense and amortization of intangible assets; stock-based compensation expense; inventory write-off, stolen in-transit shipment, net of insurance recovery; cost of sales-related restructuring; diligence, acquisition and integration expense; redomiciliation costs; (gain) loss on dispositions of equity investments; (gain) loss on non-marketable equity investments; impairment of goodwill; restructuring charges; loss on extinguishment of debt and other infrequent or unusual items. Our GAAP effective tax rate can vary significantly from quarter to quarter based on a variety of factors, including, but not limited to, discrete items which are recorded in the period they occur, the tax effects of certain items of income or expense, significant changes in our geographic earnings mix or changes to our strategy or business operations. We are unable to predict the timing and amounts of these items, which could significantly impact our GAAP effective tax rate, and therefore we are unable to reconcile our forward-looking non-GAAP effective tax rate measure to our GAAP effective tax rate. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, as they exclude important information about Penguin Solutions’ financial results, as noted above. The presentation of these adjusted amounts varies from amounts presented in accordance with GAAP and therefore may not be comparable to amounts reported by other companies. In addition, adjusted EBITDA does not purport to represent cash flow provided by, or used for, operating activities in accordance with GAAP and should not be used as a measure of liquidity. Investors are encouraged to review the "Reconciliation of GAAP to Non-GAAP Measures" tables below. Explanatory Note On June 30, 2025, we completed the redomiciliation of the parent company of our corporate group, Penguin Solutions (Cayman), Inc. (formerly known as Penguin Solutions, Inc.), a Cayman Islands exempted company ("Penguin Solutions Cayman"), from the Cayman Islands to the State of Delaware in the United States, resulting in Penguin Solutions, Inc., a Delaware corporation ("Penguin Solutions Delaware"), becoming our publicly traded parent company (the "U.S. Domestication"). Penguin Solutions Delaware is the successor issuer to Penguin Solutions Cayman. The U.S. Domestication was approved by the shareholders of Penguin Solutions Cayman and effected via a court-sanctioned scheme of arrangement under Cayman Islands law, pursuant to which each ordinary share of Penguin Solutions Cayman was exchanged for one share of common stock of Penguin Solutions Delaware, and each convertible preferred share of Penguin Solutions Cayman was exchanged for one share of convertible preferred stock of Penguin Solutions Delaware. Additional information about the U.S. Domestication was included in Penguin Solutions Cayman’s definitive proxy statement on Schedule 14A, filed with the SEC on May 2, 2025. As used in this press release, unless stated otherwise or the context requires otherwise, the terms "Penguin Solutions," "Company," "we," "our," "us" or similar terms (i) for periods prior to the consummation of the U.S. Domestication, refer to Penguin Solutions Cayman and its consolidated subsidiaries and (ii) for periods at or after the consummation of the U.S. Domestication, refer to Penguin Solutions Delaware and its consolidated subsidiaries. Throughout this press release, we refer to our equity securities (i) for periods prior to the consummation of the U.S. Domestication, as ordinary shares and/or convertible preferred shares and (ii) for periods at or after the consummation of the U.S. Domestication, as shares of common stock and/or shares of convertible preferred stock. About Penguin Solutions Penguin Solutions is a leading provider of memory and AI infrastructure, powering the AI factories of the future for enterprises, sovereign AI initiatives, and neocloud providers. Built on decades of engineering expertise at the intersection of memory and AI/HPC infrastructure, we bring together differentiated infrastructure software, advanced memory, compute systems, end-to-end services, and industry-leading partner solutions in a full-stack AI factory platform designed to help customers deploy and scale AI workloads with speed and precision. Headquartered in Silicon Valley, California, we operate globally through our network of R&D, manufacturing, and sales locations. Learn more at PenguinSolutions.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260707722795/en/ Contacts Investor Contact: Suzanne SchmidtInvestor [email protected] PR Contact: Maureen O’LearyCorporate [email protected]