
PENG Stock Forecast & Price Target
PENG Analyst Ratings
Bulls say
Penguin Solutions Inc. reported a strong financial performance in its fourth quarter, with revenue reaching $132 million, marking a 38% year-over-year increase and driven by steady pricing in DRAM/NAND markets and the rising adoption of DDR5 technology. The company's Advanced Computing segment, which constitutes a significant portion of its fiscal year 2025 revenue, grew 17% year-over-year, benefiting from increased demand for AI and high-performance computing infrastructure across various sectors. Additionally, Penguin Solutions demonstrated robust profitability, with non-GAAP operating income increasing by 39% year-over-year and a forecasted growth of approximately 30% in its core segments for fiscal year 2026, underscoring a positive outlook for future performance.
Bears say
Penguin Solutions Inc. experienced a significant decrease in cash and cash equivalents, dropping from $736 million in the previous quarter to $434 million, despite a year-over-year increase. The company's revenue for the fourth quarter fell short of both consensus estimates and corporate guidance, showing growth of only 4.2% quarter-over-quarter and 8.6% year-over-year, which may indicate underlying issues in market demand. Additionally, management has indicated that FY26 will serve as a transition year, with anticipated declines in Meta-related revenue and challenges from exiting the legacy embedded computing business, contributing to a projected overall revenue headwind.
This aggregate rating is based on analysts' research of Penguin Solutions Inc and is not a guaranteed prediction by Public.com or investment advice.
PENG Analyst Forecast & Price Prediction
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