At a glance
Penguin Solutions, Inc. is worth $3.66B, about 23 times its fiscal 2026 earnings. Revenue grew 26.5% to $1.73B in fiscal 2026, with 10.4% kept as profit; over 5 years it has grown 10.4% a year. It pays no dividend; it spent $230.0M buying back its shares over FY2022–FY2026. The stock returned +166.1% over the past year with dividends reinvested, against +11.5% for the S&P 500.
The business in plain English
Penguin Solutions, formerly SMART Global Holdings, calls itself an "AI Factory Platform" company. In plain terms, it designs, builds, sets up and manages data centers for artificial intelligence (AI) work. Customers include large businesses, hyperscalers (the biggest cloud companies), government-backed "sovereign AI" programs and neocloud providers, which are newer cloud firms that rent out AI computing power. Most revenue comes from products: they made up 85.5% of the $1.73 billion total for the fiscal year ended August 28, 2026, while services such as setup and ongoing management made up 14.5%.
Integrated Memory is the largest segment, at 53.4% of revenue ($924.0 million). It offers specialty memory modules (DRAM, a computer's short-term working memory), flash storage and memory-expansion products under the SMART Modular Technologies brand. Its sales nearly doubled from $464.2 million a year earlier. Advanced Computing, at 32.3% ($558.8 million), covers AI and high-performance computing systems, ClusterWareAI management software, related services and Stratus servers built to keep running without interruption. Its sales fell from $648.4 million a year earlier. Optimized LED, operating as Cree LED, made up 14.4%.
The United States accounted for 43.9% of revenue, China 17.4%, Mexico 15.3% and Europe 5.9%. At the end of fiscal 2026, the company had about 2,800 employees, mostly in the US, China and Malaysia.
Price history
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PENG +166.1% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Products | $1.48B | 85.5% |
| Services | $250.5M | 14.5% |
By business segment
| Integrated Memory | $924.0M | 53.4% |
| Advanced Computing | $558.8M | 32.3% |
| Optimized LED | $248.7M | 14.4% |
By geography
| United States | $759.4M | 43.9% |
| Other | $302.9M | 17.5% |
| CHINA | $301.7M | 17.4% |
| Mexico | $264.9M | 15.3% |
| Europe | $102.5M | 5.9% |
Latest results
- In Q4 FY2026 (ended Aug 28, 2026), revenue was $566.7M, up 67.7% from a year earlier, and net income was —.
- For fiscal 2026, revenue was $1.73B (+26.5% year over year; +10.4% a year from FY2021 to FY2026) with a 10.4% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +10.4% good |
|---|---|
| Operating margin | 9.6% watch |
| Free cash flow margin | -9.4% weak |
| Return on equity (FY2026) | 34.7% good |
| Return on assets (FY2026) | 6.5% watch |
| Net cash (cash minus debt) | $-141.7M watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $1.06B | $21.3M | $136.7M |
| FY2022 | $1.40B | $66.6M | $84.6M |
| FY2023 | $1.44B | $-187.5M | $65.0M |
| FY2024 | $1.17B | $-52.5M | $57.8M |
| FY2025 | $1.37B | $25.4M | $100.1M |
| FY2026 | $1.73B | $180.6M | $-163.5M |
Valuation snapshot
| Market value | $3.66B |
|---|---|
| P/E ratio | 23.4 |
| Dividend yield | 0.05% |
Rank among 1514 US companies
Market value at each year end
Penguin Solutions’s market value went from $1.02B at the end of 2024 to $3.66B on Oct 28, 2026, about 3.6 times as much; since the end of 2025 it is up 254%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $3.66B | +254.2% |
| 2025 | $1.03B | +1.1% |
| 2024 | $1.02B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PENG price data to Oct 28, 2026 | +211.0% | +166.1% | — | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +211.0% |
| 2025 | +1.9% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-11-03 to 2026-11-03 (25 read): 0 open-market purchases and 25 sales ($2.4M), 22 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| May 11, 2026 | Maximiliane C Straub Director | sell | $360K |
| Jun 1, 2026 | Joseph Gates Clark SVP and Pres, Optimized LED | sell (plan) | $277K |
| Oct 29, 2026 | Anthony George Frey SVP and Chief Revenue Officer | sell (plan) | $184K |
| May 12, 2026 | Maximiliane C Straub Director | sell | $177K |
| Aug 24, 2026 | Anne Kuykendall SVP and Chief Legal Officer | sell (plan) | $167K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14.4% | Sep 30, 2025 |
| FMR LLC | 12.4% | Jun 30, 2026 |
| Vanguard Portfolio Management | 5.84% | Sep 30, 2026 |
| STATE STREET CORPORATION | 5.5% | Sep 30, 2025 |
| Crosslink Capital, Inc. | 3.5% | Sep 30, 2025 |
| BANK OF NOVA SCOTIA | 2.53% | Sep 30, 2026 |
ETFs with the most weight in PENG
| QQQS Invesco NASDAQ Future Gen 200 ETF | 0.5% |
| SQLV Royce Quant Small‑Cap Quality Value ETF | 0.31% |
| IWC iShares Micro-Cap ETF | 0.24% |
| SCDS JPMorgan Fundamental Data Science Small Core ETF | 0.17% |
| VIOV Vanguard S&P Small-Cap 600 Value ETF | 0.16% |
| SLYV SPDR S&P 600 Small Cap Value ETF | 0.15% |
| TMSL T. Rowe Price Small-Mid Cap ETF | 0.14% |
| IJS iShares S&P Small-Cap 600 Value ETF | 0.14% |
What could go wrong
- Heavy reliance on AI data center spending. The strategy centers on AI data centers, where technology moves fast and regulation is uncertain. Slower customer spending could stall growth. In fiscal 2026, Advanced Computing sales fell to $558.8 million from $648.4 million.
- Boom-and-bust markets and swinging prices. Penguin competes in markets that have historically moved in boom-and-bust cycles. Falling product prices can cut revenue and profit quickly, and the Integrated Memory segment made up 53.4% of fiscal 2026 revenue.
- A few customers drive much of revenue. A select number of customers account for a significant share of revenue. Losing one, or a delay in a large order, could cut sales sharply and add to already uneven quarterly results.
- Few suppliers for key parts. Penguin depends on a small number of suppliers, sometimes only one, for certain parts. A shortage, price increase or supplier problem could delay shipments and squeeze profit margins.
- Tariffs, trade limits and China exposure. China supplied 17.4% of fiscal 2026 revenue and Mexico 15.3%, and many staff work in China and Malaysia. Tariffs have hurt results before, and Chinese rules limit cash it can take out of China.
- More debt than cash, negative cash flow. As of August 28, 2026, debt of $789 million exceeded cash and investments of $647 million. Free cash flow, cash from operations minus equipment spending, was negative $163.5 million in fiscal 2026.
Recent events
- Quarterly results released; Executive or board change; Investor presentation or announcement
- Quarterly results released
- Major agreement signed; New debt or financial obligation; Unregistered sale of shares; Other company announcement
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Investor presentation or announcement; Other company announcement
- Shareholder vote results
- Executive or board change; Investor presentation or announcement
For income and retirement investors
Penguin Solutions pays no dividend, and its 10-K says it does not expect to pay cash dividends in the foreseeable future. Any income would have to come from selling shares. The company has repurchased about $230 million of stock from fiscal 2022 through fiscal 2026, including $74.4 million in fiscal 2026. Even so, shares outstanding rose about 22% between December 2021 and October 2026.
Available price history covers only about two years, so it does not show how the stock fared in the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. As of October 28, 2026, the shares were up 166.1% over one year but had fallen as much as 46.3% from a peak along the way. Its one-year beta of 3.54 means it tended to move about three and a half times as much as the overall market. Single stocks carry more risk than diversified funds.
Questions investors ask
Does Penguin Solutions pay a dividend?
No. Penguin Solutions does not pay a dividend, and its annual report (10-K) for the fiscal year ended August 28, 2026, says it does not expect to pay cash dividends in the foreseeable future. Instead, it has repurchased about $230 million of its own stock from fiscal 2022 through fiscal 2026. Even with those buybacks, the number of shares outstanding rose about 22% between December 2021 and October 2026.
How does Penguin Solutions make money?
Mostly from product sales, which made up 85.5% of its $1.73 billion in revenue for the fiscal year ended August 28, 2026; services were 14.5%. Integrated Memory, which offers specialty memory and storage under the SMART Modular Technologies brand, brought in 53.4%. Advanced Computing, which designs, builds and manages AI data center systems and offers Stratus servers designed to keep running when parts fail, brought in 32.3%. Optimized LED, operating as Cree LED, brought in 14.4%.
Is Penguin Solutions the same company as SMART Global Holdings?
Yes. SMART Global Holdings changed its name to Penguin Solutions on October 15, 2024, and its Nasdaq ticker changed from SGH to PENG. The company says the change did not affect its legal structure or previously reported financial results. On June 30, 2025, it also moved the parent company's legal home from the Cayman Islands to Delaware. In fiscal 2026, it sold its remaining 19% stake in SMART Brazil.
Is Penguin Solutions profitable?
Yes, in its latest fiscal year. For the year ended August 28, 2026, it earned net income of $180.6 million, or $2.60 per diluted share, as revenue grew 26.5% to $1.73 billion. That followed net losses of $187.5 million in fiscal 2023 and $52.5 million in fiscal 2024. Cash flow was weaker: free cash flow, cash from operations minus equipment spending, was negative $163.5 million. As of October 28, 2026, the stock traded at about 23.4 times fiscal 2026 earnings.
How volatile is Penguin Solutions stock?
Very volatile. As of October 28, 2026, the shares were up 166.1% over one year and 211% year to date, yet they had fallen as much as 46.3% from a peak within the past year. Their one-year beta of 3.54 means they tended to move about three and a half times as much as the overall market. The 10-K also warns that the stock price may stay volatile and that quarterly results are hard to predict.