Penguin Solutions reported record fiscal 2026 fourth-quarter net sales of $566.7 million, up 68% from $337.9 million in the prior-year period.
Operating income increased 458% to $69.5 million.
Non-GAAP operating income rose 129% to $89.8 million.
Net income increased to $93.2 million from $9.4 million a year earlier, representing growth of 888%.
Adjusted EBITDA more than doubled to $93 million from the prior-year period.
Diluted earnings per share increased to $1.29 from $0.11, while non-GAAP diluted EPS rose to $1 from $0.43.
Penguin said performance accelerated during the second half of fiscal 2026 following the launch of its AI Factory Platform and a greater focus on AI-driven data center demand.
Revenue growth accelerated from relatively flat levels during the first half to 48% in the third quarter and 68% in the fourth quarter.
For full-year fiscal 2026, Penguin generated $1.73 billion in net sales, up 26%.
Annual operating income increased 185% to approximately $166 million.
Net income reached $181 million, up 611%, while adjusted EBITDA increased 37% to a record $256 million.
Full-year diluted EPS was $2.60 compared with $0.28 in the prior year, while non-GAAP diluted EPS increased 51% to $2.87.
Penguin added six AI Infrastructure data center customers during the fourth quarter, including four neocloud providers.
Across fiscal 2026, the company added 17 new AI Infrastructure customers, while 12 existing customers expanded their business with Penguin.
One new customer selected Penguin to deploy and operate a 36,000-GPU AI factory in Norway and has $10 billion in contracted compute from a major AI lab.
Another publicly traded neocloud customer with more than $3 billion in signed multi-year contracts selected Penguin for AI infrastructure deployment and 24/7 operations services.
Penguin also advanced its ClusterWareAI platform with self-managing agentic AI capabilities that can automatically detect and remediate GPU performance issues.
The company closed an oversubscribed $750 million convertible senior notes offering due 2031 carrying a 0% coupon.
Based on accelerating AI Infrastructure demand, Penguin raised its fiscal 2027 outlook.
The company now expects approximately $2.43 billion in fiscal 2027 revenue at the midpoint, representing roughly 40% growth, plus or minus 10 percentage points.
Penguin also expects GAAP diluted EPS of approximately $3.50 and non-GAAP diluted EPS of approximately $4.45, representing year-over-year growth of roughly 35% and 55%, respectively.
KEY QUOTES:
“Our company performance accelerated significantly in the second half of fiscal 2026 following the launch of our AI Factory Platform and increased focus on the data center market.”
Kash Shaikh, President and CEO of Penguin Solutions
“The proof is in the results. After relatively flat year-over-year net sales in the first half, growth accelerated to 48% in Q3 and 68% in Q4, driving second-half growth of 58%.”
Kash Shaikh, President and CEO of Penguin Solutions
“As we enter fiscal 2027, our memory business remains strong, and our AI Infrastructure business is accelerating further.”
Kash Shaikh, President and CEO of Penguin Solutions
