Revenue accelerated 47.6% YoY in 2026Q3 to $478.7M, with operating margin expanding to 10.6% from 3.0% a year earlier, though gross margin remained stable at 27.8%.
Penguin Solutions, Inc. (PENG) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Aug'25 | Aug'24 | Aug'23 | Aug'22 | Aug'21 | Aug'20 | Aug'19 | Aug'18 | Aug'17 | Aug'16 | Aug'15 |
|---|
| Sales/Revenue | 1.5B | 1.37B | 1.17B | 1.44B | 1.4B | 1.06B | 1.12B | 1.21B | 1.29B | 761.29M | 534.42M | 643.47M |
| Revenue Growth % | 11.97% | 16.91% | -18.77% | 3.25% | 32.24% | -5.96% | -7.39% | -5.96% | 69.29% | 42.45% | -16.95% | - |
| Cost of Goods Sold | 1.08B | 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 | 419.27M | 394.27M | 342.91M | 415.17M | 391.05M | 237.97M | 216.4M | 237.53M | 291.59M | 162.25M | 106.93M | 131.44M |
| Gross Margin % | 27.9% | 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 | 306.43M | 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 | 219.09M | 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 | 79.51M | 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 | 2.96M | 2.1M | 9.2M | 55.14M | 41.56M | 35.57M | 0 | -2.7M | -3M | 457K | 1.14M | 1.14M |
| Operating Income | 112.84M | 74.2M | 18.3M | 8.74M | 67.18M | -15.71M | 41.33M | 89.08M | 170.22M | 53.87M | 6.18M | -6.71M |
| Operating Margin % | 7.51% | 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 | 151.82M | 130.41M | 84.01M | 80.38M | 113.84M | 19.23M | 77.76M | 118.29M | 196.4M | 87.11M | 37.66M | 43.44M |
| EBITDA Margin % | 10.1% | 9.53% | 7.18% | 5.58% | 8.16% | 1.82% | 6.93% | 9.76% | 15.24% | 11.44% | 7.05% | 6.75% |
| EBITDA Growth % | 34.52% | 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) | 38.98M | 56.22M | 65.72M | 71.63M | 46.66M | 34.94M | 36.43M | 29.21M | 26.18M | 33.24M | 31.48M | 50.15M |
| EBIT | 125.43M | 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 | -1.57M | -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 | 1.57M | 7.3M | 28.38M | 36.42M | 24.34M | 17.14M | 15M | 20.72M | 19.14M | 29.2M | 25.57M | 27.56M |
| Other Income/Expense | 11.02M | -25.3M | -49.46M | -48.26M | -24.7M | -16.56M | -31.97M | -22.88M | -32.44M | -51.76M | -23.7M | -33.09M |
| Pretax Income | 123.86M | 48.9M | -31.17M | -39.51M | 42.48M | -32.27M | 9.36M | 66.2M | 137.78M | 2.12M | -17.52M | -39.8M |
| Pretax Margin % | 8.24% | 3.57% | -2.66% | -2.74% | 3.04% | -3.06% | 0.83% | 5.46% | 10.69% | 0.28% | -3.28% | -6.19% |
| Income Tax | 22.53M | 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 % | 18.19% | 41.03% | -34.07% | 124.52% | 42.55% | -30.03% | 112.21% | 22.46% | 13.29% | 467.86% | -13.95% | -16.71% |
| Net Income | 96.61M | 21.58M | -52.47M | -187.53M | 66.56M | 21.31M | -1.14M | 51.33M | 119.46M | -7.79M | -19.96M | -46.45M |
| Net Margin % | 6.43% | 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 % | 1225.08% | 141.12% | 72.02% | -381.75% | 212.33% | 1964.39% | -102.23% | -57.03% | 1632.56% | 60.95% | 57.03% | - |
| Net Income (Continuing) | 101.33M | 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 | 14.64M | 11.27M | 7.83M | 6.76M | 6.93M | 8.67M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.82 | 0.28 | -1.00 | -3.78 | 1.22 | 0.42 | -0.03 | 1.10 | 2.59 | -0.24 | -0.48 | -1.12 |
| EPS Growth % | 598.75% | 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% | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Revenue concentration and margin volatility
Metrics are mathematically derived from official filings.
Revenue Surge in 2026Q3
Penguin Solutions' revenue jumped 47.6% year-over-year to $478.7M in 2026Q3, according to the latest quarterly report, marking a sharp acceleration from the prior quarter's 6.2% decline.
The 47.6% growth in 2026Q3 is a significant inflection, especially after a -6.2% dip in 2026Q2. This suggests a major order or project ramp, possibly tied to AI infrastructure demand. However, the sustainability of this growth is uncertain; prior quarters showed volatile swings (e.g., -26.7% in 2024Q2). Investors should monitor whether this is a one-time spike or the start of a durable uptrend.
Gross Margin Stability Amid Growth
Gross margin remained relatively stable around 27-29% over the past ten quarters, with 2026Q3 at 27.8%, as reported in financial statements, despite significant revenue fluctuations.
The consistency of gross margin suggests pricing power or cost control, but it is notably lower than peers like A10 Networks (79.3%) and MACOM (54.9%), indicating a more commoditized hardware business. The slight dip to 27.8% in 2026Q3 from 29.3% in 2025Q3 may reflect product mix or input costs. This stability is a positive sign, but the absolute level limits profitability potential.
Operating Leverage Finally Kicks In
Operating income surged to $50.9M in 2026Q3, a 419% increase from the prior year, as per the income statement, with operating margin expanding to 10.6% from 3.0%.
The jump in operating margin from 3.0% in 2025Q3 to 10.6% in 2026Q3 indicates strong operating leverage, as SG&A and R&D grew modestly relative to revenue. This suggests that the company's cost structure is scalable, and the revenue surge is flowing through to the bottom line. However, the prior quarters showed thin margins (e.g., 2.8% in 2024Q4), so this leverage may be cyclical.
Net Income Boosted by Non-Operating Items
Net income in 2026Q3 was $44.7M, but EPS of $0.68 exceeded operating income per share, implying non-operating gains, as per the quarterly data.
The net income of $44.7M is higher than operating income of $50.9M? Actually, net income is lower, but the EPS of $0.68 on net income of $44.7M implies a share count of ~65.7M, which is plausible. However, in 2026Q2, net income of $37.5M on operating income of $25.7M suggests a significant tax benefit or other income. This volatility in the tax rate and non-operating items warrants scrutiny, as it may inflate reported earnings.
R&D and SG&A Discipline
R&D spending remained flat around $20M per quarter, while SG&A fluctuated between $48M and $61M, as shown in the data, indicating cost control despite revenue swings.
R&D has been consistently around $20M, suggesting a stable investment in product development. SG&A, however, has been more variable, with a notable drop to $48M in 2026Q2 from $59.4M in 2026Q3? Actually, it's the opposite: SG&A in 2026Q3 is $59.4M, up from $48M in 2026Q2. This increase may be tied to sales commissions or marketing for the revenue surge. The company appears to manage costs tightly, but the rise in SG&A in 2026Q3 could pressure margins if revenue growth slows.
Sustainability of the 2026Q3 Spike
The 47.6% revenue growth in 2026Q3 may be a one-off, as prior quarters showed negative growth, and gross margins are below peers, raising concerns about durability.
Short-sellers might argue that the revenue surge is not repeatable, given the historical volatility (e.g., -26.7% in 2024Q2). Additionally, the gross margin of 27.8% is significantly lower than peers like A10 Networks (79.3%), suggesting limited pricing power. If the revenue spike fades, operating leverage could reverse, leading to margin compression. The company's reliance on a few large customers or projects could be a risk, though not explicitly disclosed.