Business
Penguin Solutions Reports Q1 Fiscal 2026 Financial Results
Solid First Quarter Driven by Operational Excellence and Memory Growth FREMONT, Calif.--(BUSINESS WIRE)-- Penguin Solutions, Inc. (“Penguin Solutions,” “we,”
About this update from Penguin Solutions, Inc.
[{"type":"text","content":"\nSolid First Quarter Driven by Operational Excellence and Memory Growth\n\n\n FREMONT, Calif.--(BUSINESS WIRE)--\nPenguin Solutions, Inc. (“Penguin Solutions,” “we,” “us,” or the “Company”) (NASDAQ: PENG) today reported financial results for the first quarter of fiscal 2026.\n\n\nFirst Quarter Fiscal 2026 Highlights\n\n\n\nNet sales of $343 million, up 1% versus the year-ago quarter\n\n\n\nGAAP gross margin of 28.0%, down 70 basis points versus the year-ago quarter\n\n\n\nNon-GAAP gross margin of 30.0%, down 80 basis points versus the year-ago quarter\n\n\n\nGAAP diluted EPS of $0.04 versus $0.10 in the year-ago quarter\n\n\n\nNon-GAAP diluted EPS of $0.49 for the current and year-ago quarter\n\n\n\n“In Q1 we expanded our pipeline and made progress on our strategic priorities, while delivering solid operating results,” said Mark Adams, CEO of Penguin Solutions. “We continue to see signs of a shift in the AI market toward enterprise adoption and production-scale deployments, with workloads evolving from training environments into inference-driven use cases. This aligns well with our strengths in solution design, integration, and management. We remain focused on executing with discipline, deepening partnerships, and innovating across our core businesses.”\n\n\nPenguin Solutions Reaches Agreement to Divest Remaining Interest in Brazil Memory Module Business\n\n\nOn December 29, 2025, SMART Modular Technologies (LX) S.à r.l. (“Seller”), a wholly owned indirect subsidiary of the Company, entered into a Stock Transfer Agreement (the “Stock Transfer Agreement”), by and among Seller, Lexar Europe B.V. (“Buyer”), Zilia Technologies Indústria e Comércio de Componentes Eletrônicos Ltda. (“Zilia Technologies”) (formerly SMART Modular Technologies do Brasil - Indústria e Comércio de Componentes Ltda.), Shenzhen Longsys Electronics Co., Ltd., and Shanghai Intelligent Memory Semiconductor Co., Ltd. (上海慧忆半导体有限公司). Pursuant to the Stock Transfer Agreement, Seller will sell to Buyer Seller’s remaining 19% interest in Zilia Technologies for a purchase price of $46.08 million (the “Transaction”). Upon the closing of the Transaction, we will no longer hold any interest in Zilia Technologies. The closing is subject to certain customary closing conditions and is expected to occur on or about March 30, 2026 and no later than April 28, 2026.\n\n\nZilia...