# Penguin Solutions, Inc. (PENG)

> Source: Nexqual · https://nexqual.com/PENG · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Penguin Solutions, Inc. (PENG), nexqual.com/PENG" · informational, not investment advice.

**Price:** USD 51.91 (-11.08% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 58.38 · day 51.24–56.12 · 52w 16.04–89.86 · market cap $2.66B · NMS

## Key facts
- Last four reported quarters (through Aug 28, 2026): revenue $1.73B, net income $181M (10.4% margin), free cash flow -$163M (SEC filings).
- Valuation: P/E 14.7x (avg 33.9x at the last 2 fiscal year-ends).
- 1 of 80 tracked superinvestors hold PENG (13F, Q2 2026): 1 new, 0 added, 0 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 16 Form 4 filings, $4.0M; 3 not under a Rule 10b5-1 plan ($1.6M); 7 by opportunistic insiders (0 outside 10b5-1 plans), 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 2.13 on a 1–5 scale) (8 analysts), mean target USD 85.63 (range 60–100).
- Total return with dividends: 1Y +138.9% vs S&P 500 +14.9%; 5Y +108.2% vs S&P 500 +80.3%.
- Next earnings: 2027-01-05, EPS estimate USD 1.04, revenue estimate $569M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $1.40B | $1.44B | $1.17B | $1.37B | $1.73B | $1.73B |
| Gross profit | $391M | $415M | $341M | $394M | $479M | — |
| Operating income | $67.2M | $8.7M | $18.3M | $58.1M | $166M | $166M |
| Net income | $66.6M | -$188M | -$52.5M | $25.4M | $181M | $181M |
| EPS (diluted) | $1.22 | -$3.65 | -$1.00 | $0.28 | $2.60 | — |
| Free cash flow | $84.6M | $65.0M | $57.8M | $100M | -$163M | -$163M |
| Gross margin | 28.0% | 28.8% | 29.1% | 28.8% | 27.7% | — |
| Operating margin | 4.8% | 0.6% | 1.6% | 4.2% | 9.6% | 9.6% |
| Net margin | 4.8% | -13.0% | -4.5% | 1.9% | 10.4% | 10.4% |
| Revenue growth | +32.2% | +3.3% | -18.8% | +16.9% | +26.5% | — |
| Cash + short-term investments | $313M | $391M | $389M | $454M | — | — |
| Total debt | $584M | $790M | $657M | $462M | $789M | — |
Fiscal years end Aug. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Aug 28, 2026)
P/E 14.7x · P/S 1.5x · P/B 5.1x · FCF yield -6.15% · Earnings yield 6.79% · Buyback yield (TTM) 2.80%
P/E at fiscal year-ends: Aug 2026 16.0x, Aug 2025 51.7x.

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold PENG. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Polen Capital | Polen Capital Management | 0.02% | $2.2M | New position |

## Insider sales (SEC Form 4, open-market, last ~7 months)
13 of 16 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-10-22 | Kuykendall Anne | SVP and Chief Legal Officer | 738 | $41K | 0.5% | Yes (adopted November 11, 2025) | Too little history (no open-market trades in 2023–2025) |
| 2026-08-24 | Kuykendall Anne | SVP and Chief Legal Officer | 4,000 | $202K | 3.4% | Yes (adopted November 11, 2025) | Too little history (no open-market trades in 2023–2025) |
| 2026-07-23 | Clark Joseph Gates | SVP and Pres, Optimized LED | 1,327 | $76K | 2.1% | Yes (adopted November 11, 2025) | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-07-22 | Kuykendall Anne | SVP and Chief Legal Officer | 739 | $41K | 0.6% | Yes (adopted November 11, 2025) | Too little history (no open-market trades in 2023–2025) |
| 2026-06-15 | Kuykendall Anne | SVP and Chief Legal Officer | 4,000 | $258K | 3.2% | Yes (adopted November 11, 2025) | Too little history (no open-market trades in 2023–2025) |
| 2026-06-01 | Clark Joseph Gates | SVP and Pres, Optimized LED | 10,351 | $609K | 13.5% | Yes (adopted November 11, 2025) | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-05-26 | Kuykendall Anne | SVP and Chief Legal Officer | 4,000 | $218K | 3.1% | Yes (adopted November 11, 2025) | Too little history (no open-market trades in 2023–2025) |
| 2026-05-14 | Straub Maximiliane C | Director | 3,000 | $147K | 5.5% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-05-11…2026-05-12 | Straub Maximiliane C | Director | 12,000 | $537K | 17.9% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-05-11…2026-05-12 | Nayyar Sandeep | Director | 20,000 | $890K | 44% | No | Too little history (no open-market trades in 2024 or 2025) |
| 2026-05-08 | Clark Joseph Gates | SVP and Pres, Optimized LED | 5,000 | $200K | 6.1% | Yes (adopted November 11, 2025) | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-05-05 | Clark Joseph Gates | SVP and Pres, Optimized LED | 5,000 | $174K | 5.8% | Yes (adopted November 11, 2025) | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-04-23…2026-04-24 | Clark Joseph Gates | SVP and Pres, Optimized LED | 6,485 | $190K | 7% | Yes (adopted November 11, 2025) | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-04-22 | Kuykendall Anne | SVP and Chief Legal Officer | 738 | $21K | 0.6% | Yes (adopted November 11, 2025) | Too little history (no open-market trades in 2023–2025) |
| 2026-04-16 | Clark Joseph Gates | SVP and Pres, Optimized LED | 5,000 | $134K | 5.1% | Yes (adopted November 11, 2025) | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-04-09 | Clark Joseph Gates | SVP and Pres, Optimized LED | 12,546 | $283K | 11.2% | Yes (adopted November 11, 2025) | Opportunistic (traded every year 2023–2025, no repeating month) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 2.13 on a 1–5 scale), 8 analysts; mean target USD 85.63 (low 60, high 100).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-07 | Rosenblatt | Target raised | Buy | $80 → $100 |
| 2026-10-07 | Barclays | Target raised | Underweight | $40 → $60 |
| 2026-10-07 | Stifel | Target raised | Buy | $75 → $85 |
| 2026-10-07 | Needham | Target raised | Buy | $80 → $85 |
| 2026-10-02 | Rosenblatt | Maintained | Buy | $80 |
| 2026-07-20 | Barclays | Downgrade | Equal-Weight → Underweight | $40 |
| 2026-07-09 | Barclays | Target raised | Equal-Weight | $27 → $40 |
| 2026-07-08 | Stifel | Target raised | Buy | $66 → $75 |
| 2026-07-08 | Rosenblatt | Target raised | Buy | $75 → $80 |
| 2026-07-08 | Citizens | Target raised | Market Outperform | $65 → $85 |
| 2026-07-08 | Needham | Target raised | Buy | $60 → $80 |
| 2026-07-06 | Rosenblatt | Target raised | Buy | $65 → $75 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +138.9% | +108.2% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +139.6% | +15.8% |
| Volatility (annualized) | 85.0% | 67.5% |
| Max drawdown | -46.3% (Jul 2026→Jul 2026) | -63.7% (Dec 2021→Oct 2022) |

## Peers (Information Technology Services)
KD (Kyndryl Holdings, Inc.) USD 15.2 +5.92% · CSQR (Csquare, Inc.) USD 14.9 -11.83% · DXC (DXC Technology Company) USD 16.08 +4.42% · CHRN (ChronoScale Holdings Corporatio) USD 15.46 -6.98% · CIFR (Cipher Digital Inc.) USD 8.32 -8.87% · PONY (Pony AI Inc.) USD 5.02 -0.40%

## More
Full page: https://nexqual.com/PENG · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in PENG's own 10-K filed 2026-10-20 (https://www.sec.gov/Archives/edgar/data/1616533/000161653326000050/peng-20260828.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Supplier | Samsung Semiconductor | "Our semiconductor suppliers include many of the world's largest memory manufacturers, including Samsung Semiconductor, Inc., Micron Technology, Inc., SK hynix, Inc., International Business Machines Corporation, and Kioxi…" |
| Supplier | Micron Technology (MU) | "Our semiconductor suppliers include many of the world's largest memory manufacturers, including Samsung Semiconductor, Inc., Micron Technology, Inc., SK hynix, Inc., International Business Machines Corporation, and Kioxi…" |
| Supplier | SK hynix | "Our semiconductor suppliers include many of the world's largest memory manufacturers, including Samsung Semiconductor, Inc., Micron Technology, Inc., SK hynix, Inc., International Business Machines Corporation, and Kioxi…" |
| Supplier | IBM (IBM) | "Our semiconductor suppliers include many of the world's largest memory manufacturers, including Samsung Semiconductor, Inc., Micron Technology, Inc., SK hynix, Inc., International Business Machines Corporation, and Kioxi…" |
| Supplier | Kioxia | "Our semiconductor suppliers include many of the world's largest memory manufacturers, including Samsung Semiconductor, Inc., Micron Technology, Inc., SK hynix, Inc., International Business Machines Corporation, and Kioxi…" |
| Supplier | Intel (INTC) | "They also include some of the world's largest providers of computing, communications and graphics processors, including Intel Corporation ("Intel"), Advanced Micro Devices, Inc. and TD SYNNEX Corporation; as well as prov…" |
| Supplier | AMD (AMD) | "They also include some of the world's largest providers of computing, communications and graphics processors, including Intel Corporation ("Intel"), Advanced Micro Devices, Inc. and TD SYNNEX Corporation; as well as prov…" |
| Supplier | TD SYNNEX CORP (SNX) | "They also include some of the world's largest providers of computing, communications and graphics processors, including Intel Corporation ("Intel"), Advanced Micro Devices, Inc. and TD SYNNEX Corporation; as well as prov…" |
| Supplier | Super Micro Computer (SMCI) | "They also include some of the world's largest providers of computing, communications and graphics processors, including Intel Corporation ("Intel"), Advanced Micro Devices, Inc. and TD SYNNEX Corporation; as well as prov…" |
| Supplier | NEC | "Our contract manufacturers include NEC Corporation, Advantech Co., Ltd. and Celestica Inc. We often work with our suppliers in bidding for customers' design-in opportunities." |
| Supplier | Advantech | "Our contract manufacturers include NEC Corporation, Advantech Co., Ltd. and Celestica Inc. We often work with our suppliers in bidding for customers' design-in opportunities." |
| Supplier | Celestica (CLS) | "Our contract manufacturers include NEC Corporation, Advantech Co., Ltd. and Celestica Inc. We often work with our suppliers in bidding for customers' design-in opportunities." |
| Partner | Cree Venture LED Company | "We have a 51% ownership interest in Cree Venture LED Company Limited ("Cree Joint Venture"), with the remaining 49% ownership interest held by San'an Optoelectronics Co., Ltd ("San'an")." |
| Partner | Optoelectronics | "We have a 51% ownership interest in Cree Venture LED Company Limited ("Cree Joint Venture"), with the remaining 49% ownership interest held by San'an Optoelectronics Co., Ltd ("San'an")." |
| Related party | SK TELECOM CO LTD (SKM) | "On May 26, 2025, we entered into an agreement with SKT, a related party, under which we anticipate providing solutions to support SKT's future AI data center infrastructure initiatives." |

## Revenue by business segment (quarter ended 2026-08-28)

| Line | Revenue | Share | YoY | Operating income | Op. margin |
|---|---|---|---|---|---|
| Integrated Memory | $340.8M | 60.1% | +157.9% | $79.2M | 23.2% |
| Advanced Computing | $154.0M | 27.2% | +11.4% | $5.0M | 3.2% |
| Optimized LED | $71.9M | 12.7% | +6.6% | $5.6M | 7.8% |
| Total revenue | $566.7M | 100% | — | $89.8M | 15.8% |

## Revenue by product line (fiscal year ended 2026-08-28)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Products | $1.48B | 85.5% | +34.1% |
| Services | $250.5M | 14.5% | -5.2% |
| Total revenue | $1.73B | 100% | — |

## Revenue by region (fiscal year ended 2026-08-28)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $759.4M | 43.9% | -2.2% |
| Other | $302.9M | 17.5% | +88.0% |
| CHINA | $301.7M | 17.4% | +61.4% |
| Mexico | $264.9M | 15.3% | +79.9% |
| Europe | $102.5M | 5.9% | +5.7% |
| Total revenue | $1.73B | 100% | — |

## Customer concentration

Period ended 2026-08-28: 20% of revenue from unnamed direct customers (10-K, filed 2026-10-20).

## Company outlook (8-K filed 2026-10-06)

- "EX-99.1 2 d162527dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 Press Release Penguin Solutions Appoints Stephen Cumming as Senior Vice President and Chief Financial Officer to Support Accelerated Growth Penguin separately reports fourth quarter and fiscal 2026 results with multiple company records and raises full year fiscal 2027 outlook FREMONT, Calif. – October 6, 2026 – Penguin Solutions, Inc."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-11-30) | $1.04 | $0.72 | +45.7% | $569.2M | 8 |
| Next quarter (ends 2027-02-28) | $1.10 | $0.79 | +38.3% | $589.4M | 8 |
| Current fiscal year (ends 2027-08-31) | $4.56 | $3.35 | +35.9% | $2.45B | 8 |
| Next fiscal year (ends 2028-08-31) | $5.26 | $3.92 | +34.2% | $2.75B | 5 |