Slide 1: Second Quarter FY26 Financial Results
Second Quarter FY26 Financial Results Nasdaq: PENG April 1, 2026
Slide 2: Disclaimer
Disclaimer This presentation and the oral communications made during the course of this presentation contain forward-looking statements within the year ended August 29, 2025, as updated by the risk factors contained in Penguin Solutions’ Quarterly Reports on Form 10 -Q and in Penguin meaning of Sect
Slide 3: Speakers
Speakers Kash Shaikh Nate Olmstead President and CEO SVP and CFO © 2026 Penguin Solutions, Inc. All rights reserved. | 3
Slide 4: We Are at a Fundamental Inflection Point in AI
We Are at a Fundamental Inflection Point in AI AI Moving from AI Workloads Are Adoption Expanding Increased Demand for Experimentation to Production Evolving Beyond Hyperscalers Memory-Centric Architecture AI is scaling from initial pilots AI Factory workloads Demand is broadening across AI is drivi
Slide 5: Penguin's Full-Stack AI Factory Platform Capabilities
Penguin’s Full-Stack AI Factory Platform Capabilities Built around 6 core elements: 1. ClusterWare Software 2. MemoryAI Platform The AI Factory Platform Company 3. Advanced Computing Systems 4. OriginAI Architectures 5. End-to-End Services 6. Partner Ecosystem © 2026 Penguin Solutions, Inc. All righ
Slide 6: Penguin's AI Factory Platform Innovation
Penguin’s AI Factory Platform Innovation Positioned at the intersection of infrastructure + memory innovation MemoryAI Platform OriginAI® Factory Architectures ICE ClusterWare Platform • CXL-based architecture addressing • Blueprints for larger context size, • Unified control plane the “memory wall”
Slide 7: Strengthening Platform Leadership
Strengthening Platform Leadership Scaling innovation and execution Appointed Ian Colle as Chief Product Officer • 20+ years building and scaling HPC and AI infrastructure platforms • Most recently at AWS • Recognized as HPCWire “People to Watch 2026” • Focus: – Advance AI factory platform strategy –
Slide 8: Q2 FY26 Financial Highlights
Q2 FY26 Financial Highlights Results reflect strength in Integrated Memory 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 down 6% YoY 31.2%, up 0.4 percentage $45M, down 8% YoY; Non- $0.52, flat YoY points
Slide 9: Business Review
Business Review © 2026 Penguin Solutions, Inc. All rights reserved. | 9
Slide 10: Advanced Computing
Advanced Computing • Net sales of $116M in Q2, 34% of total • Decline reflects transition away from hyperscaler concentration and wind-down of Penguin Edge • First Half FY26 Diversification Progress: – Non-hyperscale HPC/AI net sales up 50% YoY • >40% of segment net sales (vs. ~20% last year) • Exam
Slide 11: Integrated Memory
Integrated Memory • Net sales of $172M in Q2, 50% of total − Up 63% YoY • Strong demand across, networking, telecommunications, and computing market segments • Favorable pricing environment • Effective supply chain execution • Memory becoming central to AI performance © 2026 Penguin Solutions, Inc.
Slide 12: Optimized LED
Optimized LED • Net sales of $56M in Q2, 16% of total • Down 7% YoY • Focus: • Disciplined operations • Capital allocation • Portfolio optimization © 2026 Penguin Solutions, Inc. All rights reserved. | 12
Slide 13: Penguin Is Positioned for the Next Phase of AI
Penguin Is Positioned for the Next Phase of AI Positioned at the intersection of AI infrastructure + memory innovation Strategic Priorities Invest in platform innovation The AI Factory Platform Company Execute with speed and precision Deepen ecosystem partnerships Expand customer base © 2026 Penguin
Slide 14: Financial Review
Financial Review © 2026 Penguin Solutions, Inc. All rights reserved. | 14
Slide 15: Q2 FY26 Results
Q2 FY26 Results Net Non-GAAP Non-GAAP Non-GAAP Sales Gross Margin Operating Margin Diluted EPS $343M 31.2% 13.2% $0.52 Down 6% YoY Up 0.4 percentage points YoY Down 0.2 percentage points YoY Flat YoY Non-GAAP gross margin, Non-GAAP operating margin and Non-GAAP diluted EPS are non-GAAP measures. For
Slide 16: Q2 FY26 Net Sales Detail
Q2 FY26 Net Sales Detail 1 Net Sales Breakdown – Total of $343M Product Net Sales Advanced Computing $279M 34% Integrated Memory Net Sales by 50% Segment Services Net Sales Optimized LED $64M 16% 1. Summations may not compute precisely due to rounding. © 2026 Penguin Solutions, Inc. All rights reser
Slide 17: Operating Results
Operating Results 1 ($M except per share amounts) Q2 FY26 Q1 FY26 Q2 FY25 Net sales $343 $343 $365 Advanced Computing $116 $151 $200 Integrated Memory $172 $137 $105 Optimized LED $56 $55 $60 2 Non-GAAP gross profit $107 $103 $112 Non-GAAP operating expenses2 $62 $61 $63 Non-GAAP operating income2 $
Slide 18: Q2 FY26 Balance Sheet and Cash Flow Highlights
Q2 FY26 Balance Sheet and Cash Flow Highlights ($M) Q2 FY26 Q1 FY26 Q2 FY25 Working Capital Net Accounts Receivable $371 $342 $330 Days Sales Outstanding 50 days 51 days 50 days Inventory $322 $213 $200 Days of Inventory 51 days 38 days 37 days Accounts Payable $401 $305 $238 Days Payable Outstandin
Slide 19: Stock Repurchase Update
Stock Repurchase Update Stock Repurchases • Repurchased 1.7 million shares for $32M in Q2 FY26 • Since April 2022, we have repurchased 9.1 million shares for $160M • As a reminder, the Audit Committee approved a new $75M stock repurchase authorization in October 2025, bringing total stock repurchase
Slide 20: Our Outlook
Our Outlook © 2026 Penguin Solutions, Inc. All rights reserved. | 20
Slide 21: FY 2026 Outlook
FY 2026 Outlook GAAP Outlook Adjustments Non-GAAP Outlook Net sales 12% YoY Growth +/- 5% — 12% YoY Growth +/- 5% Gross margin 26% +/- 0.5% 2% (A) 28% +/- 0.5% Operating expenses $310 million +/- $5 million $(60) million (B)(C) $250 million +/- $5 million Diluted earnings per share $1.30 +/- $0.15 $
Slide 22: Solving complexity. Accelerating results.
Solving complexity. Accelerating results.
Slide 23: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2026 Penguin Solutions, Inc. All rights reserved. | 23
Slide 24: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2026 Penguin Solutions, Inc. All rights reserved. | 24
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2026 Penguin Solutions, Inc. All rights reserved. | 25
Slide 26: Convertible Dilution
Convertible Dilution Note: Dilution in thousands of shares © 2026 Penguin Solutions, Inc. All rights reserved. | 26