Penguin Solutions, Inc. (PENG) Q4 FY2026 earnings

Reported results

• Q4 FY2026 record net sales of $567 million, up 68% year over year; GAAP operating income of $69 million, up 458% year over year; non-GAAP operating income of $90 million, up 129% year over year
• Q4 FY2026 record net income of $93 million, up 888% year over year; GAAP diluted EPS of $1.29 versus $0.11 in Q4 FY2025; non-GAAP diluted EPS of $1.00 versus $0.43 in Q4 FY2025
• FY2026 record net sales of $1.73 billion, up 26% year over year; GAAP operating income of $166 million, up 185% year over year; non-GAAP operating income of $241 million, up 44% year over year
• FY2026 record net income of $181 million, up 611% year over year; GAAP diluted EPS of $2.60 versus $0.28 in FY2025; non-GAAP diluted EPS of $2.87 versus $1.90 in FY2025
• Q4 FY2026 record adjusted EBITDA of $93 million, up 115% year over year; FY2026 record adjusted EBITDA of $256 million, up 37% year over year
• Closed oversubscribed $750 million convertible senior notes offering due 2031 with 0% coupon; raised six new AI Infrastructure data center customers in Q4

Guidance

• FY2027 net sales of approximately $2.43 billion at the midpoint, representing growth of approximately 40%, plus or minus 10 percentage points
• FY2027 GAAP diluted EPS of $3.50 ± $0.70
• FY2027 non-GAAP diluted EPS of $4.45 ± $0.70, representing year-over-year growth of approximately 55%
• FY2027 GAAP gross margin of 27% ± 2%
• FY2027 non-GAAP gross margin of 28% ± 2%
• FY2027 operating expenses of $329 million ± $10 million on a GAAP basis; $275 million ± $10 million on a non-GAAP basis
• FY2027 diluted shares of 63 million

Notes

Company completed U.S. Domestication on June 30, 2025, redomiciling from Cayman Islands to Delaware. Non-GAAP measures exclude stock-based compensation, amortization of acquisition-related intangibles, inventory write-offs, restructuring charges, redomiciliation costs, impairment of goodwill, gains/losses on equity investments, debt extinguishment losses, inducement expenses related to conversions of 2029 and 2030 Notes, and related tax effects. Q4 FY2026 includes $33.2 million inducement expense associated with conversions of 2029 and 2030 Notes. Company unable to reconcile forward-looking non-GAAP effective tax rate to GAAP due to unpredictable discrete items.

Price and volatility reaction

The stock moved +13.1% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -24.6 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-06 (8-K, Item 2.02). Read the original filing on sec.gov.