Penguin Solutions, Inc. · NASDAQ:PENG
Penguin Solutions — Q3 2026 Earnings Presentation
30 slides from Penguin Solutions's earnings presentation, Jul 7, 2026
Slide 1: Third Quarter FY26 Financial Results
Third Quarter FY26 Financial Results Nasdaq: PENG July 7, 2026
Slide 2: Disclaimer
Disclaimer This presentation and the oral communications made during the course of this presentation contain forward-looking statements within the August 29, 2025, as updated by the risk factors, if any, contained in Penguin Solutions’ Quarterly Reports on Form 10-Q and in Penguin meaning of Section
Slide 3: Speakers
PRESENTING TODAY Speakers Penguin Solutions Q3 FY26 Earnings Call Kash Shaikh Nate Olmstead President and CEO SVP and CFO © 2026 Penguin Solutions, Inc. All rights reserved. | 3
Slide 4: AI-Driven Demand Is Growing
AI-Driven Demand Is Growing Built for the AI factory era Evolving into a leading 74% AI Factory Platform Company of total Q3 FY26 net sales from AI-driven business1 Executed record quarterly net sales and higher-than-anticipated EPS Raised full-year net sales and EPS outlook 104% ↑ growth in AI-driv
Slide 5: Finance Leadership Transition
OUTGOING INTERIM Finance Leadership Transition As announced June 1, 2026 Nate Olmstead Aaron Johnson Chief Financial Officer Interim Chief Financial Officer Steps down July 8, 2026 Effective July 9, 2026 VP of Finance & Accounting 16+ yrs public-company tech experience © 2026 Penguin Solutions, Inc.
Slide 6: Our Focus Areas
Our Focus Areas 01 AI moves to production, agentic AI 02 Our AI Factory Platform 03 Customer and partner momentum 04 Go-to-market execution © 2026 Penguin Solutions, Inc. All rights reserved. | 6
Slide 7: AI Moving Into Production with Persistent Agentic AI Workflows
AI Moving Into Production with Persistent Agentic AI Workflows Driving increased demand for memory, general purpose compute, and networking Pre-Agentic AI Inference Inference at Scale with Agentic AI Agentic Workflow Planning User Request User + System Request Business System Integration Request Par
Slide 8: Full-Stack AI Factory Platform
• Full-Stack AI Factory Platform Our Full-Stack AI Factory Platform combines five core elements with industry-leading partner technologies designed to help customers confidently deploy and scale AI workloads with speed and precision. 1. ClusterWareAI : AI Factory Platform operating system software 2
Slide 9: Customer and Partner Momentum
Customer and Partner Momentum Proof points across enterprise, sovereign, and neocloud AI factories Deepgram Tier-One Financial Institution Haein Expanded win: Voice-AI inference on Dell + NVIDIA Expanded win: MemoryAI + ClusterWareAI + Services SK partnership, sovereign AI and neocloud service Land
Slide 10: Industry-Leading Partnerships
Industry-Leading Partnerships Partner recognitions that reflect our impact AI Factory 2026 AI Partner Specialized Partner of the Year Elite Tier Global Alliances For Full-Stack AI Factory Platforms, Expertise in designing, building, combining Penguin’s proven AI deploying, and managing enterprise- i
Slide 11: Product, Operations, and Go-to-Market Execution
Product, Operations, and Go-to-Market Execution Investing where we can build durable differentiation MemoryAI KV Cache Server ClusterWareAI OriginAI® CXL-based KV Cache server designed to improve Hardware-agnostic OS software that unifies Pre-validated reference architectures that can AI factory eff
Slide 12: Q3 FY26 Highlights
Q3 FY26 Highlights Record net sales and operating income, led by AI-driven demand Net sales RECORD Non-GAAP operating income1 Q3 R E C OR D $479M $64M 48% YoY 40% QoQ ▲ 67% vs. Q3 last year 74% 104% AI-Driven Business Integrated Memory + non-hyperscale AI infrastructure within Advanced Computing2 of
Slide 13: Business Review
Business Review © 2026 Penguin Solutions, Inc. All rights reserved. | 13
Slide 14: Advanced Computing
Advanced Computing Net sales STRONG $138M ▲ 4% YoY Strong customer engagement across enterprise, sovereign AI, and neocloud Customers moving from evaluation and planning toward production deployments New deal size continues to increase, showing enterprise confidence in their AI strategies © 2026 Pen
Slide 15: Integrated Memory
Integrated Memory Net sales High Growth $275M ▲ 111% YoY Strong demand across networking, telecom, and computing market segments Favorable pricing environment Penguin’s CXL Memory Expansion — 1 TB Effective supply chain execution Memory becoming central to AI performance © 2026 Penguin Solutions, In
Slide 16: Optimized LED
Optimized LED Net sales Momentum $66M ▲ 7% YoY Executing with discipline Delivering on its innovation roadmap Positive cash flow © 2026 Penguin Solutions, Inc. All rights reserved. | 16
Slide 17: Positioned at the Intersection of Memory & AI Infrastructure
Our Company Differentiation Positioned at the Intersection of Memory & AI Infrastructure Two booming, AI-driven demand markets Memory AI Infrastructure Leader in the next phase of AI Inference powering agentic AI with: CXL and MemoryAI KV Cache Purpose-built memory for AI inference and third-party d
Slide 18: Financial Review
Financial Review © 2026 Penguin Solutions, Inc. All rights reserved. | 18
Slide 19: Q3 FY26 Results
Q3 FY26 Results Record net sales and operating income, led by AI-driven demand RECORD Q3 RECORD STRONG GROWTH Non-GAAP Non-GAAP Net Sales Operating Income Diluted EPS $479M $64M $0.84 Up 48% YoY Up 67% YoY Up 79% YoY Non-GAAP operating income and non-GAAP diluted EPS are non-GAAP measures. For recon
Slide 20: Q3 FY26 Net Sales Detail
Q3 FY26 Net Sales Detail 1 Net Sales: Product vs. Services Net Sales: Business Segment Product Net Sales Integrated Memory $414M 57% 87% of total Advanced Computing $479M 29% total net sales Services Net Sales Optimized LED $65M 14% 13% of total 1. Summations may not compute precisely due to roundin
Slide 21: AI Demand Driving Growth in Memory + AI Infrastructure
AI Demand Driving Growth Integrated Memory + Non- in Memory + AI Infrastructure AI-Driven Hyperscale AI Infrastructure Business represented 74% of Q3 FY26 net sales and grew 104% versus Q3 FY25 Q3 FY26 Total Company Net Sales of $479M Integrated Advanced Optimized Memory Computing LED AI-Driven Busi
Slide 22: Operating Results
Operating Results 1 ($M except per share amounts) Q3 FY26 Q2 FY26 Q3 FY25 Net sales $479 $343 $324 Advanced Computing $138 $116 $132 Integrated Memory $275 $172 $130 Optimized LED $66 $56 $62 Non-GAAP gross profit2 $135 $107 $103 Non-GAAP operating expenses2 $70 $62 $64 Non-GAAP operating income2 $6
Slide 23: Q3 FY26 Balance Sheet and Cash Flow Highlights
Q3 FY26 Balance Sheet and Cash Flow Highlights ($M) Q3 FY26 Q2 FY26 Q3 FY25 Working Capital Net Accounts Receivable $704 $371 $293 Days Sales Outstanding 53 days 50 days 47 days Inventory $498 $322 $184 Days of Inventory 42 days 51 days 36 days Accounts Payable $736 $401 $272 Days Payable Outstandin
Slide 24: Our Outlook
Our Outlook © 2026 Penguin Solutions, Inc. All rights reserved. | 24
Slide 25: FY26 Outlook
FY26 Outlook GAAP Outlook Adjustments Non-GAAP Outlook Net sales 22% YoY Growth +/- 2% — 22% YoY Growth +/- 2% Gross margin 26.5% +/- 0.5% 2% (A) 28.5% +/- 0.5% Operating expenses $303 million +/- $5 million $(43) million (B)(C) $260 million +/- $5 million Diluted earnings per share $1.97 +/- $0.05
Slide 26: Thank You
Thank You The AI Factory Platform Company www.penguinsolutions.com
Slide 27: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2026 Penguin Solutions, Inc. All rights reserved. | 27
Slide 28: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2026 Penguin Solutions, Inc. All rights reserved. | 28
Slide 29: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2026 Penguin Solutions, Inc. All rights reserved. | 29
Slide 30: Convertible Dilution
Convertible Dilution © 2026 Penguin Solutions, Inc. All rights reserved. | 30