PENG ~+7–8% pre-mkt: Q4 sales +68% to $567M, adj EPS $1.00 vs ~$0.78 — FY27 guide raised to ~$2.43B / $4.45
Posted: Wed Oct 07, 2026 10:07 am
Penguin Solutions (formerly SMART Global) reported fiscal Q4 after Tuesday's close. It's indicated ~+7–8% pre-market (around $69 on the early prints), after ~+5% in the after-hours session.
The numbers:
- Q4 net sales $567M, +68% y/y, vs ~$516M consensus. Non-GAAP EPS $1.00 vs ~$0.78.
- Integrated Memory did the heavy lifting: $341M in Q4 vs $132M a year ago. Advanced Computing (the AI infrastructure segment) $154M.
- FY27 outlook raised: net sales ~$2.43B at the midpoint (~40% growth, ±10 pts), up from the ~$2.17B preliminary view last quarter. Non-GAAP EPS $4.45 ± $0.70, non-GAAP gross margin 28% ± 2%.
- Six new AI infrastructure customers in Q4 (four of them neoclouds), including a 36,000-GPU AI factory deployment in Norway.
Worth knowing before you chase it:
- Operating cash flow was -$163M in Q4 (-$152M for the year) as receivables and inventory ballooned. Inventory is ~$749M vs $255M a year ago.
- GAAP EPS of $1.29 was flattered by a ~$58M tax benefit.
- The guide range is wide (±10 pts on growth, ±$0.70 on EPS), so the street will anchor on the midpoint.
My read: it's a memory-cycle beat with an AI-infrastructure story on top. The float is small (~49M shares), so the open could be thin and gappy. I'd watch whether it holds the after-hours area (~$67.50) after the first 15 minutes. Losing that turns it into a fade-the-gap setup. No position.
Sources (public): Penguin Solutions Q4 FY26 release / 8-K (ir.penguinsolutions.com), Benzinga pre-market movers, ChartMill.
Anyone trading PENG off the open, or waiting for the first pullback? Does the cash burn bother you on a name like this, or is it all about the memory cycle right now?
The numbers:
- Q4 net sales $567M, +68% y/y, vs ~$516M consensus. Non-GAAP EPS $1.00 vs ~$0.78.
- Integrated Memory did the heavy lifting: $341M in Q4 vs $132M a year ago. Advanced Computing (the AI infrastructure segment) $154M.
- FY27 outlook raised: net sales ~$2.43B at the midpoint (~40% growth, ±10 pts), up from the ~$2.17B preliminary view last quarter. Non-GAAP EPS $4.45 ± $0.70, non-GAAP gross margin 28% ± 2%.
- Six new AI infrastructure customers in Q4 (four of them neoclouds), including a 36,000-GPU AI factory deployment in Norway.
Worth knowing before you chase it:
- Operating cash flow was -$163M in Q4 (-$152M for the year) as receivables and inventory ballooned. Inventory is ~$749M vs $255M a year ago.
- GAAP EPS of $1.29 was flattered by a ~$58M tax benefit.
- The guide range is wide (±10 pts on growth, ±$0.70 on EPS), so the street will anchor on the midpoint.
My read: it's a memory-cycle beat with an AI-infrastructure story on top. The float is small (~49M shares), so the open could be thin and gappy. I'd watch whether it holds the after-hours area (~$67.50) after the first 15 minutes. Losing that turns it into a fade-the-gap setup. No position.
Sources (public): Penguin Solutions Q4 FY26 release / 8-K (ir.penguinsolutions.com), Benzinga pre-market movers, ChartMill.
Anyone trading PENG off the open, or waiting for the first pullback? Does the cash burn bother you on a name like this, or is it all about the memory cycle right now?