Penguin Solutions Beats Q2 Estimates, Raises Outlook

Penguin Solutions Inc., a provider of AI infrastructure and memory solutions, reported stronger-than-expected fiscal second-quarter results on April 1, 2026, prompting the company to raise its full-year outlook and sending shares up more than 14 percent the following day.

For the quarter ended February 28, 2026, the company posted net sales of $343 million, surpassing the consensus estimate of $339 million but down 6 percent from $365.5 million a year earlier. Adjusted earnings per share came in at 52 cents, beating the 42-cent forecast and matching the prior-year figure. On a GAAP basis, diluted earnings per share rose to 58 cents from 9 cents. The results reflected robust demand in the advanced computing segment, which offset a decline in integrated memory sales, as enterprises and governments invested in AI data centers.

Chief Executive Officer Kash Shaikh attributed the performance to accelerating AI adoption. "Enterprises, governments, and neo-cloud providers are racing to build AI factories, as platforms scale to power the next generation of inference workloads," Shaikh said. "Our AIHPC pipeline continues to expand, and we added five AIHPC customers this quarter, including...