Penguin Solutions, Inc.

How has the stock done?

Change in closing price from the first day shown, or with Price the closing price itself. Prices: Yahoo Finance, to Nov 12, 2026. Dashed lines: the days the company released earnings (its SEC 8-K filings); EPS estimates: Yahoo Finance. The stock's move after a release runs from the last close before its day to the close the day after (or five days after), so a release before the open counts like one after the close.

Is the business growing?

In the fiscal year to Aug 2026, Products was 86% and Services was 14% of revenue; Products rose from 79% in the fiscal year to Aug 2024.

In the fiscal year to Aug 2026, United States was 44% and China was 17% of revenue; United States fell from 57% in the fiscal year to Aug 2024.

Quarters: Penguin Solutions, Inc.'s SEC filings, named by the month they end. Fiscal years: Penguin Solutions, Inc.'s annual reports to the SEC.

How it makes money

Of every $100 in revenue, $10.4 ends up as net income. Net margin rose from −13.0% to 10.4% over the past 3 years.

Circled: Aug 2023 (net −44.5%, operating −0.5%). Net margin is usually about 3 points below operating margin; in that quarter something below operating income (a tax charge or benefit, a gain or loss on investments, a write-down) moved it, not the business itself.

Each margin is that line of the income statement divided by revenue. Fiscal year: Penguin Solutions, Inc.'s annual reports to the SEC; quarters: SEC filings.

Customers and suppliers

In its latest annual report Penguin Solutions buys from Samsung Semiconductor, Micron Technology, SK hynix and 12 more; three customers it does not name account for 20.0% and 14.1% and 18.2% of its revenue.

Their suppliers

ASE Technology ASXto AMD

TSMC TSMto AMD, Intel

UMC UMCto AMD, Intel

Broadcom AVGOto Hewlett-Packard Enterprise

NVIDIA NVDAto Hewlett-Packard Enterprise

ASML ASMLto Intel, Micron Technology

Silicon Motion Technology SIMOto Kioxia Holdings, Micron Technology +1

Applied Materials AMATto Micron Technology

Lam Research LRCXto SK hynix, Micron Technology

H

HITECH Semiconductorto SK hynix

Show 10

Suppliers

AMD AMD

Celestica CLS

Hewlett-Packard Enterprise HPE

IBM IBM

Intel INTC

Kioxia Holdings KXIAY

Micron Technology MU

SK hynix SKHY

Super Micro Computer SMCI

TD Synnex SNX

Wolfspeed WOLF

Advantech

NEC 6701.T

Samsung Semiconductor

San’an 600703.SS

+7 more

 

PENGPenguin Solutions

Customers

Unnamed customer 20%

Unnamed customer 18%

Unnamed customer 14%

Penguin Solutions's 10-K for the year to Aug 2026 gives one customer's share of its revenue: Customer One (20%). Separately, it gives a group of customers: Ten Largest Customers (56%).

From Penguin Solutions, Inc.'s 10-Q and 10-K filings (XBRL): each customer whose share of revenue a filing tags, under the filing's own label, so “Customer A” in one filing can be another company in the next; a later filing's figures for a period replace an earlier one's. A dash is a group of customers the filing gives (a government's agencies, the largest customers together, all the others): it can include the customers beside it, so the shares need not add up.

Partners

SKT SKMinvested in Penguin Solutions · Preferred equity investment through an affiliate$200.0 million investment closed December 13, 2024

AAstra AI Infrainvested in Penguin Solutions · Holds convertible preferred shares200,000 convertible preferred shares for $200.0 million, December 13, 2024

San’an 600703.SSCo-owns LED manufacturing joint venture49% ownership interest in Cree Joint Venture

Only the companies Penguin Solutions names in its 10-K filed Oct 20, 2026 (SEC). The supply chain joins the latest annual reports of the companies on it and the 8-Ks they filed since: a link shows when either side's report names the other, so it grows as more reports are read. Hover a name for the filing's own words. Customers it does not name are listed as the filing describes them.

Is it expensive?

P/E of 19.3x, in line with the peer median of 19.6x, with earnings still growing.

In line with the peer median of 19.6x (excludes 1 unprofitable peer).

At 19.3× trailing earnings PENG is inside the middle of its five-year range; the five-year median is 35.2×.

Closing price over diluted earnings per share of the last four reported quarters, as known on each day (a quarter counts 35 days after it ends). From SEC filings; earnings per share adjusted for splits.

What analysts expect

The average analyst price target is $85.63, 71% above the current price; 88% of 8 analysts rate it a buy; earnings beat estimates in all of the last 4 quarters.

Buy or Strong Buy: 7 analysts (88%). Sell or Strong Sell: 1.

Over the past year the average of the analysts' latest price targets went from $28.14 to $83.00 (+195%), while PENG went from $18.83 to $50.10 (+166%). In the past three months targets were raised 4 times and never cut. No upgrades and 2 downgrades over the year; the latest: Barclays moved it to Underweight from Equal-Weight on Jul 20, 2026.

The day after each of these reports the stock moved −11.8% (Nov 2025, beat); +17.6% (Feb 2026, beat); +15.9% (May 2026, beat); +19.6% (Aug 2026, beat).

For the quarter ending Nov 2026 (Penguin Solutions reports on Jan 5, 2027), analysts expect adjusted earnings of $1.04 a share, 113% more than the $0.49 of a year earlier, and revenue of $569M, up 66% on a year earlier. For the fiscal year ending Aug 2027, they expect adjusted earnings of $4.56 a share, 60% more than the $2.85 of the year before, and revenue of $2.5B, up 42% on the year before.

Targets, ratings and earnings estimates: Yahoo Finance. Rating and target changes: Yahoo Finance's list of upgrades and downgrades. The average target on each day is the average of every listed firm's latest target set in the 180 days before it, so it counts fewer analysts than the average target above, and the band is the middle half of those targets (a quarter of the firms are above it, a quarter below); a target set before a stock split is divided by the split. Expected figures: the average of the analysts' estimates (Yahoo Finance). Their EPS is adjusted, as analysts estimate it, so it is set against the adjusted EPS Yahoo reports for the same quarters, not the GAAP EPS of the growth and valuation sections; revenue against the SEC filings. No change is given against a quarter whose reported EPS was more than 50% off its own estimate (often a one-off gain or charge), nor against a year that counts one. Each estimate is pinned to its fiscal period by the report date or the period's end, and one that cannot be is left out.

Where the cash goes

Capex of $11M exceeds operating cash flow of −$152M, leaving free cash flow of −$163M. It still paid $74M to shareholders (dividends plus buybacks), so $237M had to come from cash on hand or borrowing.

Penguin Solutions had 64M diluted shares in the quarter ended Aug 2026, 17.8% more than a year earlier, and 5.9% more each year on average since Feb 2022. It spent $74M on buybacks over the last four quarters.

Free cash flow: operating cash flow minus capital spending on property, plant and equipment, from SEC filings, for the last 4 quarters and by quarter. Shares: each quarter's diluted weighted average as filed with the SEC, since the stock's listing and its latest split.

Financial health

Current ratio 1.9, no pressure to repay short-term debt; shareholder equity is only 19% of assets, so debt-to-equity (1.5) says little; it has net debt and its operations used cash over the last four quarters.

Latest fiscal year balance sheet. Source: Yahoo Finance.

Who holds it

In the filings of 3 funds whose copy leaves PENG out (on the exchange, not in the app yet): Polen Capital Management, Swiss National Bank, Fisher Asset Management.

What did the funds Hunch tracks do?

Of the 83 funds whose 13F filings Hunch reads, 6 held PENG at the end of their latest quarter (for most, Q2 2026). Over that quarter 2 added shares, 2 cut, 2 bought new and 1 sold all. The largest of them is Renaissance Technologies, 221,300 shares worth $12.1M at Sep 30, 2026, 767.8% more than a quarter earlier.

From the 13F filings of the 83 funds Hunch tracks, not of every institution: each fund's shares of PENG at its latest quarter end against the quarter before, as filed (long positions only, options left out), the quarter before put on the latest quarter's share count across a split. A fund files 45 days after its quarter ends, so some have a newer quarter than others. Value is at the quarter end.

Are insiders buying or selling?

Officers and directors sold $5.0M of PENG on the open market in the 12 months to Nov 12, 2026; none bought. 69% of the sales were made under 10b5-1 plans, set up in advance. The largest was Joseph Gates Clark (SVP and Pres, Optimized LED), who sold $2.2M in 21 sales.

From the Form 4s filed with the SEC about Penguin Solutions, Inc. (51 in the 12 months): purchases (code P) and sales (code S) on the open market by its officers and directors, at the price each filing gives (often an average of the day's trades). A sale is a 10b5-1 sale when its filing says it was made under such a plan, set up in advance. Not counted: 33 other transactions (grants and shares withheld for tax).