On April 1, 2026, Penguin Solutions, Inc. announced its financial results for the second quarter of fiscal 2026, reporting net sales of $343 million, a decrease of 6% compared to the same quarter last year. The company also reported a GAAP gross margin of 27.3%, down 130 basis points year-over-year, while its non-GAAP gross margin improved to 31.2%, up 40 basis points from the previous year. Notably, GAAP diluted earnings per share (EPS) rose to $0.58, a significant increase from $0.09 in the year-ago quarter, while non-GAAP diluted EPS remained stable at $0.52.

CEO Kash Shaikh highlighted the growing demand for AI and high-performance computing (HPC) solutions, stating, "Enterprises, governments, and neocloud providers are racing to build AI factories, as platforms scale to power the next generation of inference workloads. Our AI/HPC pipeline continues to expand, and we added five AI/HPC customers this quarter, including a Tier One financial institution deploying our MemoryAI CXL-based KV cache server."

In light of strong memory demand and disciplined execution, the company raised its full-year net sales and EPS outlook, projecting a 12% year-over-year growth in net sales, with a margin of +/- 5%. The updated outlook reflects a gross margin expectation of 26% with a +/- 0.5% variance and a diluted EPS target of $1.30, also with a +/- $0.15 variance.

The company will hold a conference call to discuss these results and the outlook for the remainder of the fiscal year, emphasizing its commitment to delivering innovative solutions in the AI and HPC markets. The press release detailing these results is available on the company's investor relations website.

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