Revenue jumped 68% and the company raised its fiscal 2027 outlook, sending the stock up about 6% before the bell. Six of every ten dollars of quarterly sales came from memory products.
Penguin Solutions pitched its fourth quarter as the payoff from its artificial-intelligence infrastructure strategy. The composition of its revenue suggests memory pricing did much of the lifting.
For the fiscal fourth quarter ended , net sales rose 68% to $566.7 million, well above the $521.0 million analysts had expected. Non-GAAP earnings were $1.00 a share, against expectations of about 77 cents. On a GAAP basis, the company earned $1.29 a share, compared with 11 cents a year earlier.
Integrated Memory generated $340.8 million, or about 60% of the quarter's revenue. Advanced Computing contributed $154.0 million and Optimized LED $71.9 million. Gross margin was 27.5% on a GAAP basis and 28.8% on a non-GAAP basis.
For the full fiscal year, net sales rose 26% to $1.73 billion and non-GAAP earnings reached $2.87 a share.
The outlook is the bigger story. Penguin now expects fiscal 2027 net sales to grow 40%, plus or minus 10 percentage points, up from a prior 30% target, implying about $2.43 billion at the midpoint. It forecast non-GAAP earnings of $4.45 a share, a 55% increase, with gross margin of 28%, plus or minus two points.
The chief executive said performance "accelerated significantly in the second half of fiscal 2026 following the launch of our AI Factory Platform." The company also named Stephen Cumming chief financial officer, effective immediately.
Why the mix matters
With memory supplying the majority of sales, Penguin's results double as a read on memory pricing, which is cyclical. The Advanced Computing segment, home to the AI factory business, is the piece investors will want to see grow faster for the narrative to hold. Another detail stands out: GAAP earnings exceeded non-GAAP earnings this quarter, a reversal of the usual relationship between the two measures.
The shares, which closed up 5.77% at $64.21 on Tuesday before the release, traded at $68.03 in premarket dealings Wednesday, up about 6%.
What to watch
Samsung Electronics releases preliminary third-quarter results on Thursday in Seoul, which will offer a fresh read on memory demand. Korean chip shares fell Wednesday, with Samsung down 1.29% and SK Hynix down 2.82%. Applied Digital reports after Wednesday's close.