AI-extracted from the 10-K filed 2026-10-20 — FY2026 (year ended August 28, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Penguin Solutions grew FY2026 net sales 26.5% to $1.73B, driven by Integrated Memory's 99% surge, while gross margin slipped to 27.7% and operating income rose to $165.6M.
Biggest Revenue Drivers
Integrated Memory$924.0M+99.0% YoY
Strong momentum across DRAM and Flash, as accelerating AI-driven demand drove favorable pricing and increased volume.
Advanced Computing$558.8M-13.8% YoY
Primarily due to the wind down of Penguin Edge and hyperscale hardware sales in 2025 that did not recur in 2026.
Biggest Revenue Drivers
Total revenue: $1.73B+26.5% YoY
Integrated Memory$924.0M+99.0% YoY
Strong momentum across DRAM and Flash, as accelerating AI-driven demand drove favorable pricing and increased volume.
Advanced Computing$558.8M-13.8% YoY
Primarily due to the wind down of Penguin Edge and hyperscale hardware sales in 2025 that did not recur in 2026.
Optimized LED$248.7M-2.9% YoY
Primarily due to a broad-based decline in demand across the business.
Largest Expense Items
Cost of sales$1.25B+28.5% YoY
Primarily driven by strong growth for the Integrated Memory segment.
Selling, general and administrative$220.4M-7.5% YoY
Primarily due to lower personnel-related expenses from headcount reductions and lower subcontract services.
Research and development$81.7M+2.4% YoY
Primarily due to higher personnel-related expenses from increased bonus achievement.
Margins: Gross margin decreased to 27.7% from 28.8%, primarily attributable to the wind down of the Penguin Edge business and a shift in sales mix across business units. Higher memory pricing increased Integrated Memory gross margin, and a decline in memory pricing would reverse that benefit.
Watch Items from the Filing
Ten largest customers represented 56% of total net sales in 2026, and one Integrated Memory customer accounted for approximately $346.1M or 20.0% of net sales.
Operating cash flow from continuing operations was negative $151.9M, driven by a $493.6M inventory build and a $488.4M rise in accounts receivable.
Company completed a $750M 0.00% convertible notes issuance due 2031 and induced conversion of 2029 and 2030 notes, recognizing $33.2M of inducement expense.
A $68.7M valuation allowance release drove a $33.9M income tax benefit, boosting net income to $185.8M; the effective tax rate was (22.3)%.
A $10.0M impairment on a non-marketable equity investment was recorded, and the Penguin Edge goodwill was fully impaired in 2025, reflecting weakness in certain holdings.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Olmstead NathanSVP and CFOShares withheld for tax or exercise price · Apr 20, 2026
About Penguin Solutions, Inc. (PENG): stock profile, AI score and financials
Penguin Solutions, Inc. (PENG) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores PENG at 54.4/100 on a composite quality score built from its SEC filings, placing it at rank #1,324 of 2,925 stocks — the top half of the AI-ranked universe. PENG scores in the top quartile across revenue growth (82.3), balance sheet strength (81.1). Areas of concern include earnings quality (5.8) and free cash flow (17.6), which score below median versus the broader universe. Shareholder dilution risk is elevated at 40.5/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q4 2026), Penguin Solutions, Inc. reports quarterly revenue of $566.7M, net income of $93.2M, an operating margin of 12.3%. Top institutional holders of PENG by reported 13-F value include BlackRock, FMR, Invesco Ltd., based on the most recent SEC filings. PENG trades on the Nasdaq exchange and files with the SEC under CIK 1616533. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate PENG daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Penguin Solutions, Inc. directly from SEC EDGAR.