Revenue growth remains highly inconsistent, evidenced by a 6.2% year-over-year decline in 2026Q2, while structural margin constraints keep operating margins at a modest 7.5%.
| Sales/Revenue | 1.35B | 1.37B | 1.17B | 1.44B | 1.4B | 1.06B | 1.12B | 1.21B | 1.29B | 761.29M | 534.42M | 643.47M |
| Revenue Growth % | 2.27% | 16.91% | -18.77% | 3.25% | 32.24% | -5.96% | -7.39% | -5.96% | 69.29% | 42.45% | -16.95% | - |
| Cost of Goods Sold | 967.1M | 974.52M | 827.88M | 1.03B | 1B | 817.56M | 905.98M | 974.47M | 997.24M | 599.04M | 427.49M | 512.03M |
| COGS % of Revenue | - | 71.2% | 70.71% | 71.19% | 71.99% | 77.45% | 80.72% | 80.4% | 77.38% | 78.69% | 79.99% | 79.57% |
| Gross Profit | 381.14M | 394.27M | 342.91M | 415.17M | 391.05M | 237.97M | 216.4M | 237.53M | 291.59M | 162.25M | 106.93M | 131.44M |
| Gross Margin % | 28.27% | 28.8% | 29.29% | 28.81% | 28.01% | 22.55% | 19.28% | 19.6% | 22.62% | 21.31% | 20.01% | 20.43% |
| Gross Profit Growth % | - | 14.98% | -17.4% | 6.17% | 64.32% | 9.97% | -8.9% | -18.54% | 79.71% | 51.73% | -18.64% | - |
| Operating Expenses | 309.32M | 320.08M | 324.62M | 406.43M | 323.87M | 253.68M | 175.07M | 148.45M | 121.36M | 108.38M | 100.75M | 138.15M |
| OpEx % of Revenue | - | 23.38% | 27.73% | 28.2% | 23.2% | 24.03% | 15.6% | 12.25% | 9.42% | 14.24% | 18.85% | 21.47% |
| Selling, General & Admin | 219.41M | 238.18M | 233.88M | 260.72M | 204.84M | 158.17M | 123.01M | 103.23M | 84.54M | 69.76M | 61.5M | 93.26M |
| SG&A % of Revenue | - | 17.4% | 19.98% | 18.09% | 14.67% | 14.99% | 10.96% | 8.52% | 6.56% | 9.16% | 11.51% | 14.49% |
| Research & Development | 77.75M | 79.8M | 81.54M | 90.56M | 77.47M | 59.93M | 52.06M | 47.92M | 39.82M | 38.16M | 38.12M | 43.74M |
| R&D % of Revenue | - | 5.83% | 6.96% | 6.28% | 5.55% | 5.68% | 4.64% | 3.95% | 3.09% | 5.01% | 7.13% | 6.8% |
| Other Operating Expenses | 3M | 2.1M | 9.2M | 55.14M | 41.56M | 35.57M | 0 | -2.7M | -3M | 457K | 1.14M | 1.14M |
| Operating Income | 71.82M | 74.2M | 18.3M | 8.74M | 67.18M | -15.71M | 41.33M | 89.08M | 170.22M | 53.87M | 6.18M | -6.71M |
| Operating Margin % | 5.33% | 5.42% | 1.56% | 0.61% | 4.81% | -1.49% | 3.68% | 7.35% | 13.21% | 7.08% | 1.16% | -1.04% |
| Operating Income Growth % | - | 305.56% | 109.21% | -86.98% | 527.71% | -138% | -53.6% | -47.67% | 215.96% | 771.04% | 192.18% | - |
| EBITDA | 112.41M | 130.41M | 84.01M | 80.38M | 113.84M | 19.23M | 77.76M | 118.29M | 196.4M | 87.11M | 37.66M | 43.44M |
| EBITDA Margin % | 8.34% | 9.53% | 7.18% | 5.58% | 8.16% | 1.82% | 6.93% | 9.76% | 15.24% | 11.44% | 7.05% | 6.75% |
| EBITDA Growth % | -3.15% | 55.23% | 4.52% | -29.4% | 491.97% | -75.27% | -34.26% | -39.77% | 125.46% | 131.28% | -13.28% | - |
| D&A (Non-Cash Add-back) | 40.58M | 56.22M | 65.72M | 71.63M | 46.66M | 34.94M | 36.43M | 29.21M | 26.18M | 33.24M | 31.48M | 50.15M |
| EBIT | 82.37M | 56.21M | -2.79M | -3.09M | 66.83M | -15.12M | 24.36M | 86.92M | 156.92M | 31.32M | 8.06M | -12.24M |
| Net Interest Income | -1.49M | -7.3M | -28.38M | -36.42M | -24.34M | -17.14M | -15M | -20.72M | -19.14M | -29.2M | -25.57M | -27.56M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.49M | 7.3M | 28.38M | 36.42M | 24.34M | 17.14M | 15M | 20.72M | 19.14M | 29.2M | 25.57M | 27.56M |
| Other Income/Expense | 9.05M | -25.3M | -49.46M | -48.26M | -24.7M | -16.56M | -31.97M | -22.88M | -32.44M | -51.76M | -23.7M | -33.09M |
| Pretax Income | 80.87M | 48.9M | -31.17M | -39.51M | 42.48M | -32.27M | 9.36M | 66.2M | 137.78M | 2.12M | -17.52M | -39.8M |
| Pretax Margin % | 6% | 3.57% | -2.66% | -2.74% | 3.04% | -3.06% | 0.83% | 5.46% | 10.69% | 0.28% | -3.28% | -6.19% |
| Income Tax | 22.28M | 20.07M | 10.62M | -49.2M | 18.07M | 9.69M | 10.5M | 14.87M | 18.32M | 9.91M | 2.44M | 6.65M |
| Effective Tax Rate % | 27.55% | 41.03% | -34.07% | 124.52% | 42.55% | -30.03% | 112.21% | 22.46% | 13.29% | 467.86% | -13.95% | -16.71% |
| Net Income | 54.58M | 21.58M | -52.47M | -187.53M | 66.56M | 21.31M | -1.14M | 51.33M | 119.46M | -7.79M | -19.96M | -46.45M |
| Net Margin % | 4.05% | 1.58% | -4.48% | -13.01% | 4.77% | 2.02% | -0.1% | 4.24% | 9.27% | -1.02% | -3.73% | -7.22% |
| Net Income Growth % | 1069.16% | 141.12% | 72.02% | -381.75% | 212.33% | 1964.39% | -102.23% | -57.03% | 1632.56% | 60.95% | 57.03% | - |
| Net Income (Continuing) | 58.6M | 28.84M | -41.78M | 9.69M | 24.41M | -41.95M | -1.14M | 51.33M | 119.46M | -7.79M | -19.96M | -46.45M |
| Discontinued Operations | 0 | -3.81M | -8.15M | -195.38M | 44.19M | 64.46M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 13.14M | 11.27M | 7.83M | 6.76M | 6.93M | 8.67M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.03 | 0.28 | -1.00 | -3.78 | 1.22 | 0.42 | -0.03 | 1.10 | 2.59 | -0.24 | -0.48 | -1.12 |
| EPS Growth % | 510.12% | 128% | 73.55% | -409.84% | 190.48% | 1780% | -102.27% | -57.53% | 1179.17% | 50% | 57.14% | - |
| EPS (Basic) | - | 0.29 | -1.00 | -3.78 | 1.35 | 0.44 | -0.03 | 1.12 | 2.71 | -0.24 | -0.48 | -1.12 |
| Diluted Shares Outstanding | 53.19M | 54.37M | 52.43M | 51.32M | 54.44M | 51.58M | 47.99M | 46.94M | 46.24M | 31.57M | 41.41M | 41.41M |
| Basic Shares Outstanding | 52.28M | 53.15M | 52.43M | 49.57M | 49.47M | 48.56M | 47.99M | 45.92M | 44.1M | 31.57M | 41.41M | 41.41M |
| Dividend Payout Ratio | - | 36.43% | - | - | - | - | - | - | - | - | - | - |
Lumpy project-based revenue volatility
As indicated by the most recent quarterly filings, PENG's revenue trajectory has fluctuated significantly, with a 6.2% year-over-year decline in 2026Q2 following a period of growth, highlighting the inherent lumpiness of project-based Advanced Computing deployments and the cyclical nature of its legacy memory and LED segments.
The inconsistency in top-line performance suggests that the company's transition toward high-performance computing solutions has yet to provide a stable, recurring revenue base. Investors should monitor whether the recent rebranding to Penguin Solutions can successfully accelerate adoption in the AI infrastructure market to offset the cyclical headwinds in its commodity hardware divisions.
Based on reported financial statements, PENG maintains a consolidated gross margin of approximately 28.8%, a figure that appears constrained by the heavy weighting of lower-margin commodity memory and LED products within the overall revenue mix, preventing a meaningful expansion in core profitability despite recent strategic shifts.
The inability to consistently push gross margins above the 30% threshold suggests that the company's specialized computing solutions are not yet scaling sufficiently to dilute the impact of its lower-margin legacy businesses. This margin profile warrants further investigation into whether the company possesses genuine pricing power or if it remains a price-taker in the highly competitive semiconductor and hardware assembly markets.
According to historical income statement data, PENG's operating income has failed to scale consistently with gross profit, as evidenced by an operating margin of 7.5% in 2026Q2, which suggests that high overhead and integration costs continue to absorb the gains from its specialized hardware deployments.
The persistent volatility in operating margins implies that the company has not yet achieved the operational efficiency required to leverage its R&D and SG&A investments effectively. Analysts should scrutinize whether the current cost structure is a temporary byproduct of its recent corporate restructuring or a more permanent drag on the company's ability to generate sustainable operating leverage.
As reported in recent SEC filings, PENG's net income has exhibited extreme variability, swinging from a $24.5 million loss in 2024Q4 to a $37.5 million profit in 2026Q2, a trend that appears heavily influenced by non-operating items and the significant impact of stock-based compensation expenses.
The wide divergence between GAAP net income and operational performance suggests that investors should focus on normalized earnings metrics to gauge the true health of the business. The recurring nature of stock-based compensation, often exceeding $10 million per quarter in prior periods, indicates a potential ongoing dilution risk that may continue to weigh on shareholder returns.
Based on an analysis of the company's complex segment structure, short-term observers may argue that PENG's rebranding masks a lack of fundamental improvement, as the company continues to struggle with low net margins of 1.58% despite the ongoing industry-wide surge in demand for AI-related infrastructure.
The primary risk to the current narrative is that the company's legacy hardware businesses may continue to act as a structural anchor, preventing the market from assigning a premium valuation to its Advanced Computing segment. Investors should monitor whether the company can successfully cross-sell its high-reliability software solutions to its existing customer base, or if it will remain trapped in a low-margin, capital-intensive hardware cycle.
Quick answers to the most common questions about buying PENG stock.
For fiscal year 2025, Penguin Solutions, Inc. (PENG) reported total revenue of $1.37B. This represents a 112.7% increase compared to $643.5M in 2015.
Penguin Solutions, Inc. (PENG) is profitable, generating $21.6M in net income for the fiscal year ending 2025 with a net profit margin of 1.6%.
Penguin Solutions, Inc. (PENG) reported an operating income of $74.2M, resulting in an operating profit margin of 5.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Penguin Solutions, Inc. (PENG) generated $394.3M in gross profit for the year, representing a gross profit margin of 28.8%. This demonstrates the company's core pricing power and production efficiency.