PENG
Penguin Solutions, Inc.

Penguin Solutions, Inc.PENG

Technology · Information Technology Services
41.83USD
+12.39%
Nov 08, 2026
PENG overview ready
AI Cluster Design, Integration, and Lifecycle Management Provider
Penguin is an AI-infrastructure provider and lifecycle operator: it designs and validates AI cluster configurations, integrates racks and supporting systems, deploys them, and provides ClusterWareAI software plus managed services to provision, monitor, optimize, and maintain AI factories.
Primary theme is lagging
AI Infrastructure is lagging (-29.6pp vs SPY over 21 sessions; 0 of 16 members ahead of SPY).
Price trend is broken
Longer-term context reads near trend floor, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Fair valuation
The price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.
Low free cash flow yield
Free cash flow yield is weak.
Primary risk
Dependence on AI market investment cycles.
Market Nov 6Filing Aug 28Price action Nov 7Research Oct 7

Conviction Level

PriceAction6.0BusinessPerformance9.0BusinessQuality5.4Valuation5.4ThemeMomentum1.0Accelerating — Revenue growth has accelerated across 3 consecutive quarters, rising from -6.2% to +68% year over year. Diluted EPS moved to $1.29 from $0.11; the prior-year base is too small for a meaningful percentage. — Accelerating describes growth momentum measured in recent filed quarters. It is not proof that the acceleration will continue.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−29.6pp
Theme return
−34.5%
Beating SPY
0 of 16
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads near trend floor, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryConstructive

Structure is constructive, but price remains well extended from the long-term weekly base and the earlier reset has already been partly recovered — a workable rather than ideal entry location.

Key Financials

Market Cap
$2.5B
Avg Volume (60D)
3.5M
60 sessions
Revenue Growth YoY
+26.5%
FY2026 vs FY2025
Gross Margin
+27.7%
Trailing twelve months
Operating Margin
+9.6%
Trailing twelve months
Free Cash Flow Yield
-6.5%
Distance from 200DMA
-6.3%
Next Earnings
2027-01-05
P/E
14.0x
EV / EBITDA
12.3x
EV / Sales
1.5x
Market metrics as of Nov 6, 2026
Financial results for the period ended Aug 28, 2026
Filed balance-sheet data as of Aug 28, 2026

Business Performance

Accelerating

Revenue growth has accelerated across 3 consecutive quarters, rising from -6.2% to +68% year over year. Diluted EPS moved to $1.29 from $0.11; the prior-year base is too small for a meaningful percentage.

Latest reported: Q4 FY2026, ended Aug 28
Revenue growthAccelerating
+68%
$567M in Q4 FY2026 · YoY
YoY growth, last 4 quarters
  1. +0.6%
  2. -6.2%
  3. +48%
  4. +68%
Earnings growthGrowing
$1.29
Diluted EPS $1.29 vs $0.11 a year earlier · GAAP, from the earnings release
Diluted EPS YoY (GAAP), last 4 quarters
  1. -60%
  2. +544%
  3. n/a
  4. n/a
Operating marginExpanding
12.3%
+8.6 pp YoY · gross margin 27.5% (-1.1 pp)
Profit is not fully converting to cash

Business Quality

5.4 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

The available comparisons disagreed; the peers comparison is the more reliable method for this business and the others are published as dissent.
Penguin Solutions, Inc. has a Fair valuation stance because the price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.

What changed

  • PENG rose 12.4% in one session
    PENG closed +12.4% while the broad market was close to flat (+0.3%).
    2026-11-06
  • PENG fell 23.0% in one session
    PENG closed -23.0% against a broad market that moved -4.4%.
    2026-11-05
  • PENG rose 12.0% in one session
    PENG closed +12.0% while the broad market was close to flat (+0.3%).
    2026-11-03
  • PENG fell 8.5% in one session
    PENG closed -8.5% while the broad market was close to flat (-0.5%).
    2026-11-02

Company Research

Thesis
Penguin is an AI-infrastructure provider and lifecycle operator: it designs and validates AI cluster configurations, integrates racks and supporting systems, deploys them, and provides ClusterWareAI software plus managed services to provision, monitor, optimize, and maintain AI factories.
Opportunity
High opportunity
Demand for specialized services, validated system architectures, deployment tooling, and operating software that turn GPU, networking, memory, and storage components into production-ready AI clusters and sustain their availability at scale.
Key risk
Dependence on AI market investment cycles.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Information Technology Services
What they do

Penguin Solutions designs, builds, deploys, and manages AI-focused data center infrastructure and clusters for enterprises, sovereign AI projects, and neocloud providers globally through its Advanced Computing, Integrated Memory, and Optimized LED segments.

How it earns

The company generates revenue primarily through project-based system integration, deployment services, and ongoing managed services for AI infrastructure.

Products & services
AI infrastructure design and cluster validation
ClusterWareAI software and managed services
Stratus brand high-availability data center products
Dynamic random-access memory modules
Customers & end markets
Enterprises with AI compute needs
Sovereign AI initiatives
Neocloud service providers
Market position

Niche AI infrastructure provider specializing in cluster design, integration, and lifecycle management.

Demand drivers
Medium cyclicality

Demand tied to AI investment cycles and enterprise technology spending patterns.