Penguin Solutions, Inc. Q4 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Penguin Solutions Q4 & FY2026 Earnings Summary

Executive Overview

  • Delivered record Q4 results with strong acceleration in AI-driven businesses; non-hyperscale AI infrastructure and integrated memory represented 78% of Q4 net sales and grew 141% year-over-year.
  • Full-year performance showed operating leverage, with EPS growth outpacing net sales growth.
  • Leadership update: Stephen Cumming appointed new CFO; Aaron Johnson (Interim CFO) presented results before returning to VP Finance role.

Q4 2026 Financial Performance (vs. Q4 2025)

  • Net sales: $567 million, +68% YoY (+18% sequentially).
  • Gross margin: 28.8% (+70 bps sequentially).
  • Operating margin: 15.8% (+4.2 pts YoY; +2.4 pts sequentially).
  • Diluted EPS: $1.00, +133% YoY (+19% sequentially).
  • Record gross profit: $163 million (+57% YoY).
  • Record operating income: $90 million (+129% YoY).
  • Record adjusted EBITDA: $93 million (+115% YoY).
  • Product sales: $510 million (+86% YoY); Services: $57 million (-11% YoY).

FY2026 Financial Performance (vs. FY2025)

  • Net sales: $1.73 billion, +26% YoY.
  • Diluted EPS: $2.87, +51% YoY (exceeded July outlook by $0.22).
  • Record gross profit: $508 million.
  • Record operating income: $241 million (+44% YoY); operating margin 13.9% (+1.7 pts YoY).
  • Record adjusted EBITDA: $256 million (+37% YoY).
Professional feature The full AI summary covers key highlights, financial performance and analyst Q&A.
Operator: Hello, everyone. Thank you for joining us, and welcome to the Penguin Solutions Fourth Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Lana Adair, Investor Relations. Please go ahead. Lana Adair: Thanks, everyone, for joining us. With me today are Kash Shaikh, Stephen Cumming, and Aaron Johnson. Our earnings materials are available on the Investor Relations section of our website, and I encourage you to review these materials. Also, please take some time to review the presentation, which includes additional content to complement our discussion today. During this call, unless otherwise indicated, all references to financial measures refer to non-GAAP financial measures. Non-GAAP measures should not be considered in isolation from, as a substitute for, or superior to our GAAP results. A reconciliation of these measures to their most directly comparable GAAP measures can be found in our press release and accompanying slide presentation. Statements made during this call that relate to future results and events are forward-looking statements based on current beliefs and assumptions and are not guarantees of future performance. Actual results and events could differ materially from those projected due to a number of risks and uncertainties, which are discussed in our press release, our earnings call presentation and our SEC filings. Except as required by applicable law, we assume no obligation to update our forward-looking statem
Professional feature The full transcript includes every speaker turn.