Penguin Solutions Shares Jump 16 Percent to $74 After an Earnings Beat and a Higher 2027 Sales Outlook

Penguin Solutions shares rose 16 percent on Wednesday after the company beat fourth-quarter estimates, guided fiscal 2027 above Wall Street and named a chief financial officer.

The stock traded at $74.21, up $10, or 15.57 percent. It was up about 8 percent in premarket trading at $69.10. Goldman Sachs raised its target to $85 from $75 and kept a buy rating. The average target sits near $74, roughly where the shares opened the rally.

Net sales in the fiscal fourth quarter were $567 million, up 68 percent from $338 million a year earlier and ahead of a $516 million consensus. Adjusted earnings were $1 a share, against estimates of 77 or 78 cents, and up 133 percent. Integrated memory sales were a record $341 million, up 158 percent. Artificial-intelligence lines were 78 percent of quarterly sales. Non-hyperscale AI infrastructure grew 99 percent. The company signed six new AI infrastructure customers in the quarter, four of them neocloud providers, and said bookings outran sales, leaving a record backlog.

"As we enter fiscal 2027, our memory business remains strong, and our AI Infrastructure business is accelerating further," Chief Executive Kash Shaikh said. Management guided fiscal 2027 net sales to about $2.43 billion at the midpoint, up roughly 40 percent and above a $2.32 billion consensus, and diluted earnings to $4.45 a share at the midpoint, up about 55 percent and above a $4.01 consensus. Fiscal 2026 non-GAAP earnings were $2.87. The company appointed Stephen Cumming senior vice president and chief financial officer.

Penguin sells memory, computing gear and the work of standing up data-center systems. The quarter splits that into two speeds. Memory is the larger dollar line and the one that more than doubled. AI infrastructure is the faster percentage and the one Shaikh said is still accelerating, even as older computing work runs off. A customer count of six new names is not a revenue commitment. The backlog is the closer measure, and the company said it is at a record without putting a dollar figure in the first accounts of the call.

The stock was already up more than 200 percent over the past year before Wednesday. A 16 percent move on a beat and a guide-up is the market adding the raise, not discovering the business. At $74 the shares are on the average target and $11 under Goldman's new one. The $4.45 forecast is the number that has to show up. Memory at $341 million in a single quarter is the number that already did. Shaikh's line was that both are still growing. The open on Wednesday priced that claim at a $10 gain.