Slide 1: First Quarter FY26 Financial Results
First Quarter FY26 Financial Results Nasdaq: PENG January 6, 2026
Slide 2: Disclaimer
Disclaimer This presentation and the oral communications made during the course of this presentation contain forward-looking statements within the Solutions' other filings with the U.S. Securities and Exchange Commission (“SEC”). Such risks, uncertainties and factors as outlined meaning of Section 2
Slide 3: Speakers
Speakers Mark Adams President and CEO Nate Olmstead SVP and CFO © 2026 Penguin Solutions, Inc. All rights reserved. | 3
Slide 4: Q1 FY26 Financial Highlights
Q1 FY26 Financial Highlights Results reflect solid execution Net Sales Gross Margin Operating Income EPS Net sales of $343M, Non-GAAP gross margin of Non-GAAP operating income of Non-GAAP diluted EPS of up 1% YoY 30.0%, down 0.8 percentage $42M, up 1% YoY; Non-GAAP $0.49, flat YoY points YoY operati
Slide 5: AI Is Happening in Waves
AI Is Happening in Waves Enterprise inference expected to drive next phase of AI infrastructure 100’s of Solutions Hyperscale AI Enterprise AI Model 1 Consumption for Training Entering Wave 2 2 Development, Fine Tuning and Private Model Creation Dedicated Model Inference at Scale Multi-Model Agentic
Slide 6: Production-Ready AI Infrastructure Solution
Production-Ready AI Infrastructure Solution Our OriginAI® solution is pre-validated and scalable Penguin Solutions OriginAI Factory Architecture VALIDATED All Servers, Racks, Network, Storage HARDWARE SOFTWARE Penguin and 3rd Party Software BUILD Design and In-Factory Build 3 Years of On-Site Deploy
Slide 7: Solving Complexity and Accelerating Results in AI
Solving Complexity and Accelerating Results in AI Leveraging our experience and expertise to help customers harness the full power of accelerated computing 25+ 89,000+ 3.3+ Billion Years Experience GPUs Deployed & Managed Hours of GPU Runtime © 2026 Penguin Solutions, Inc. All rights reserved. | 7
Slide 8: Business Review
Business Review © 2026 Penguin Solutions, Inc. All rights reserved. | 8
Slide 9: Advanced Computing
Advanced Computing • Net sales of $151M in Q1, up 9% vs. Q4 FY25 • New customer wins in defense and education & research • Expanding pipeline across financial services, oil and gas, telecom, manufacturing, education and sovereign AI • Rising demand for rapid, production-ready AI deployments • Launch
Slide 10: Integrated Memory
Integrated Memory • Revenue of $137M in Q1, up 41% YoY • Strong demand across networking, telecom, and computing markets • Early CXL shipments and expanding customer qualifications • Continued investment in memory pooling and optical memory architectures • Growing enterprise and large-scale customer
Slide 11: Optimized LED
Optimized LED • Net sales of $55M in Q1, down 18% YoY • Continued demand weakness in China, with softness among select large U.S. OEM customers • Focus remains on profitability, leveraging a specialty product portfolio • Benefits from industry-leading IP and a capital- light, outsourced front-end mo
Slide 12: Positioned for Scaled Enterprise AI Adoption
Positioned for Scaled Enterprise AI Adoption Our transition from a holding company to an AI solutions provider Simplifying Deepening Investing in Strengthening Corporate Structure Partnerships Technologies Balance Sheet Planned $46M sale of Enhance ecosystem Combined investments in Support investmen
Slide 13: Financial Review
Financial Review © 2026 Penguin Solutions, Inc. All rights reserved. | 13
Slide 14: Q1 FY26 Results
Q1 FY26 Results Net Non-GAAP Non-GAAP Non-GAAP Sales Gross Margin Operating Margin Diluted EPS $343M 30.0% 12.1% $0.49 Up 1% YoY Down 0.8 percentage points YoY Up 0.1 percentage points YoY Flat YoY Non-GAAP gross margin, Non-GAAP operating margin and Non-GAAP diluted EPS are non-GAAP measures. For r
Slide 15: Q1 FY26 Net Sales Detail
Q1 FY26 Net Sales Detail 1 Revenue Breakdown – Total of $343M Product Revenue $279M Integrated Memory 40% Advanced Computing Revenue by 44% Segment Services Revenue $65M Optimized LED 16% 1. Summations may not compute precisely due to rounding. © 2026 Penguin Solutions, Inc. All rights reserved. | 1
Slide 16: Operating Results
Operating Results 1 ($M except per share amounts) Q1 FY26 Q4 FY25 Q1 FY25 Net sales $343 $338 $341 Advanced Computing $151 $138 $177 Integrated Memory $137 $132 $97 Optimized LED $55 $67 $67 2 Non-GAAP gross profit $103 $104 $105 Non-GAAP operating expenses2 $61 $65 $64 Non-GAAP operating income2 $4
Slide 17: Q1 FY26 Balance Sheet and Cash Flow Highlights
Q1 FY26 Balance Sheet and Cash Flow Highlights ($M) Q1 FY26 Q4 FY25 Q1 FY25 Working Capital Net Accounts Receivable $342 $308 $276 Days Sales Outstanding 51 days 51 days 45 days Inventory $213 $255 $247 Days of Inventory 38 days 51 days 49 days Accounts Payable $305 $267 $244 Days Payable Outstandin
Slide 18: Stock Repurchase Update
Stock Repurchase Update Stock Repurchases • Repurchased 791K shares for $15M in Q1 FY26 • Since April 2022, we have repurchased 7.4M shares for $128M • As a reminder, the Audit Committee approved a new $75M stock repurchase authorization in October 2025, bringing total stock repurchase authorization
Slide 19: Our Outlook
Our Outlook © 2026 Penguin Solutions, Inc. All rights reserved. | 19
Slide 20: FY 2026 Outlook
FY 2026 Outlook GAAP Outlook Adjustments Non-GAAP Outlook Net sales 6% YoY Growth +/- 10% — 6% YoY Growth +/- 10% Gross margin 27% +/- 1% 2% (A) 29% +/- 1% Operating expenses $307 million +/- $10 million $(57) million (B)(C) $250 million +/- $10 million Diluted earnings per share $0.85 +/- $0.25 $1.
Slide 21: Solving complexity. Accelerating results.
Solving complexity. Accelerating results. • Contact information goes here
Slide 22: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 1. In the second quarter of fiscal 2025 we began breaking out costs related to the U.S. Domestication from “Other.” All periods presented have been adjusted to reflect this change. © 2026 Penguin Solutions, Inc. All rights reserved. | 22
Slide 23: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 1. In the second quarter of fiscal 2025 we began breaking out costs related to the U.S. Domestication from “Other.” All periods presented have been adjusted to reflect this change. 2. The three months and year ended August 29, 2025 include ($8,249) as a one-time tax
Slide 24: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 1. In the second quarter of fiscal 2025 we began breaking out costs related to the U.S. Domestication from “Other.” All periods presented have been adjusted to reflect this change. © 2026 Penguin Solutions, Inc. All rights reserved. | 24
Slide 25: Convertible Dilution
Convertible Dilution Note: Dilution in thousands of shares © 2026 Penguin Solutions, Inc. All rights reserved. | 25