Penguin Solutions lifted its outlook after reporting a higher profit and rising sales in the third quarter, citing artificial-intelligence driven customer demand.
The computing solutions company on Tuesday said it now expects full-year adjusted earnings of $2.55 to $2.65 a share on net sales growth between 20% and 24%.
It had previously forecast $2.00 to $2.30 in adjusted earnings per share on 7% to 17% net sales growth. Analysts surveyed by FactSet are expecting full-year adjusted earnings of $2.23 a share on $1.56 billion in net sales, representing roughly 14% year-over-year growth.
Shares rose 7.2% to $67.25 in after-hours trading on Tuesday. The stock closed down 7.4% at $62.71, having more than tripled in value since the start of the year.
The updated outlook comes after Penguin reported a third-quarter profit of $44.7 million, or 68 cents a share. That compares with a profit of $2.7 million, equivalent to a loss of 1 cent a share, a year earlier.
Stripping out certain one-time items, the company logged adjusted earnings of 84 cents a share, beating the 54 cents a share analysts were expecting, according to FactSet.
Net sales rose to $478.7 million, up from $324.3 million a year prior. Analysts were expecting $407.5 million.
Chief Executive Officer Kash Shaikh attributed the company's profitable growth to momentum in the company's integrated memory and AI infrastructure business.
"We are seeing very strong AI-driven customer demand for memory and AI infrastructure solutions. As inference and agentic AI workloads become more persistent and context-rich, memory is increasingly becoming one of the primary performance and scalability bottlenecks," Shaikh said. "Penguin is well positioned at the intersection of memory and AI infrastructure to help customers address these evolving requirements."
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
July 07, 2026 16:20 ET (20:20 GMT)
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