Penguin Solutions surges 9% on Q2 earnings, revenue beat

Published 02/04/2025, 21:24
Penguin Solutions surges 9% on Q2 earnings, revenue beat

MILPITAS, Calif. - Penguin Solutions, Inc. (NASDAQ:PENG) shares surged 9.4% after the company reported better-than-expected second quarter results and raised its full-year revenue guidance.

The AI infrastructure provider posted adjusted earnings per share of $0.52, beating analyst estimates of $0.39. Revenue jumped 28.3% YoY to $366 million, also topping expectations of $337.42 million.

"Our results reinforce our capabilities in managing the complexity of AI for our valued customers," said CEO Mark Adams. "Given our strong start to the fiscal year, we are raising the midpoint of our revenue outlook for the full year."

For fiscal 2025, Penguin Solutions now expects revenue growth of 17% YoY, plus or minus 3%, up from its previous outlook of 15% growth. The company also guided for full-year adjusted EPS of $1.60, plus or minus $0.10, above the $1.58 consensus.

The strong quarter was driven by a 41.5% YoY increase in Advanced Computing segment revenue to $200.2 million. Integrated Memory revenue rose 26.4% to $105.3 million.

Gross margin contracted slightly to 30.8% on a non-GAAP basis, down from 31.5% in the year-ago quarter.

Penguin Solutions ended the quarter with $621.7 million in cash and short-term investments. The company also announced that COO Jack Pacheco plans to retire at the end of 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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