Penguin Solutions, Inc. (PENG) Stock Analysis
Technology · Information Technology Services · NasdaqGS
Penguin Solutions, Inc. (PENG) posted $1.37B in revenue for fiscal 2025 (up 16.9% year over year), at a 1.1% net margin, and has compounded revenue about 4.0%/yr over five years, per its SEC filings.
Data last refreshed August 2, 2026 from SEC filings · how we compute this
The analyst's take on Penguin Solutions, Inc.
Penguin Solutions, Inc. has grown revenue from $534.42M to $1.37B over the last 10 fiscal years, compounding about 4% a year. The most recent year was up 16.9%, so growth is actually accelerating.
Net margin sits at 1.1%, up 5.6 points year over year on a 28.8% gross margin. It carries about $461.84M of total debt.
At today's valuation the market is pricing in roughly 13.6% annual free-cash-flow growth — versus the 12.8% it actually delivered over the last five years, broadly in line with what it has delivered. The one thing worth a second look in the filings is inventory building faster than sales.
Synthesised from Penguin Solutions, Inc.'s SEC filings — descriptive, not advice. Ask the analyst your own question →
Penguin Solutions, Inc. revenue & earnings — last 10 fiscal years
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $534.42M | $761.29M | $1.29B | $1.21B | $1.12B | $1.06B | $1.82B | $1.44B | $1.17B | $1.37B |
| Gross profit | $106.93M | $162.25M | $291.59M | $237.53M | $216.40M | $237.97M | $391.05M | $415.17M | $340.78M | $394.27M |
| Net income | $-19.96M | $-7.79M | $119.46M | $51.33M | $-1.14M | $21.31M | $66.56M | $-187.53M | $-52.47M | $15.46M |
| Net margin | -3.7% | -1.0% | 9.3% | 4.2% | -0.1% | 2.0% | 3.7% | -13.0% | -4.5% | 1.1% |
Source: Penguin Solutions, Inc. SEC filings (10-K). 11 years of history available in the interactive view.
Penguin Solutions, Inc.: 2 potential red flags in the filings
Patterns in the filed statements worth a second look — computed and cited, not AI guesswork, and not a signal to sell. The kind of thing that hides in a 10-K.
- Inventory building faster than salesInventory rose 68.8% versus revenue 16.9% — possible overproduction or softening demand.
- Share count rising (dilution)Shares outstanding grew 8.2% over 4 years (48.7M → 52.7M) — existing holders' stakes are being diluted.
What growth is priced into PENG stock?
At today's market cap of $3.08B, Penguin Solutions, Inc. is priced for free-cash-flow growth of about 13.6% per year for 10 years (assuming a 10% discount rate and 2.5% terminal growth, base FCF $100.07M from the FY ending 2025-08-31). For comparison, free cash flow actually grew 12.8%/yr over the last five fiscal years and revenue 4%/yr, computed from its SEC filings. This is a reverse DCF — a translation of the price into a growth assumption you can judge, not a fair value and not advice. Change the assumptions yourself in the interactive view →
Explore 11 years of Penguin Solutions, Inc. financials — interactive
Full income statement, balance sheet and cash flow with CAGR and trend on every row, 48 quarters, valuation ratios, plain-English health checks, and Ask — our SEC-grounded research assistant.
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Penguin Solutions, Inc. financial history by metric
Compare Penguin Solutions, Inc. with peers
About Penguin Solutions, Inc.
Penguin Solutions, Inc. designs, builds, deploys and manages enterprise solutions worldwide. The company operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers hardware, software, and services focusing on technical computing for core and cloud environments through high-performance computing and AI solutions under the Penguin Solutions, Penguin Computing, Stratus, and Penguin Edge brands. The company also provides Penguin Solutions OriginAI, an AI infrastructure solution for customers deploying GPUs at scale; continuous availability of customers critical data and applications in data centers and edge locations under the Stratus brand products; and dynamic random-access memory, modules, solid-state/flash storage, and other integrated memory solutions to networking and telecom, data analytics, AI, and ML under the SMART Modular Technologies brand. In addition, it provides Zefr, a memory module; Altus and AMD EPYC based servers for expansive memory for AI workloads; flash memory products comprising solid-state drives, Serial Advanced Technology Attachment, and PCIe NVMe products in 2.5 enclosures, M.2, EDSFF, and other module form factors; and multimediacard and embedded and removable USB products, and SD and microSD Card configurations, as well as firmware development. Further, the company offers procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging supply chain services; and LEDs under the Cree LED brand; Cree LED XLamp and J Series packaged LED components. It serves OEMs, enterprise, government, and other end customers through direct and third-party channels. The company has a collaboration with Deepgram and Dell Technologies. The company was formerly known as SMART Global Holdings, Inc. and changed its name to Penguin Solutions, Inc. in October 2024. Penguin Solutions, Inc. was founded in 1988 and is headquartered in Fremont, California.
Penguin Solutions, Inc. — frequently asked questions
What is Penguin Solutions, Inc.'s revenue?
Penguin Solutions, Inc. (PENG) reported revenue of $1.37B for fiscal year 2025, up 16.9% from the prior year, according to its SEC filings.
Is Penguin Solutions, Inc. profitable?
Yes. PENG earned net income of $15.46M in fiscal 2025, a net margin of 1.1%.
What is PENG's P/E ratio?
Penguin Solutions, Inc. trades at a price-to-earnings ratio of about 83.6 based on the latest data in our nightly-refreshed cache.
How fast is Penguin Solutions, Inc. growing?
PENG's revenue grew at roughly 4.0% per year over the last five fiscal years (compound annual growth rate), computed from SEC-filed statements.
How much debt does Penguin Solutions, Inc. have?
As of fiscal year 2025, PENG carried roughly $461.84M in total debt (short- plus long-term borrowings), per its filed balance sheet.
What is Penguin Solutions, Inc.'s gross margin?
PENG's gross margin was 28.8% in fiscal 2025 — gross profit of $394.27M on revenue of $1.37B.
What is Penguin Solutions, Inc.'s market cap?
Penguin Solutions, Inc. (PENG) has a market capitalization of about $3.08B, based on the latest data in our nightly-refreshed cache.
When does Penguin Solutions, Inc.'s fiscal year end?
PENG's fiscal year ends in August. Its most recent annual filing covers the fiscal year ending 2025-08-31.
What growth is priced into PENG stock?
At today's market cap of $3.08B, Penguin Solutions, Inc. is priced for free-cash-flow growth of about 13.6% per year for 10 years (assuming a 10% discount rate and 2.5% terminal growth, base FCF $100.07M from the FY ending 2025-08-31). For comparison, free cash flow actually grew 12.8%/yr over the last five fiscal years and revenue 4%/yr, computed from its SEC filings.
Where does this data come from?
All figures are computed from Penguin Solutions, Inc.'s official SEC filings (10-K and 10-Q), covering 11 years of history, refreshed nightly. stockportfolio.pro does not provide investment advice.