PENG Stock Rallying 14% After Hours – What’s Behind The Bull Run?

• PENG said it expects adjusted net sales for fiscal year 2026 of 12% year-over-year growth +/-5%. 
• It expects adjusted diluted earnings per share of $2.15 +/- $0.15 for FY26. 

Penguin Solutions (PENG) shares rallied 14% in Wednesday’s extended hours of trading as it reported its second quarter net sales that was above analyst estimates. 

“Enterprises, governments, and neocloud providers are racing to build AI factories, as platforms scale to power the next generation of inference workloads,” said Kash Shaikh, CEO of Penguin Solutions. “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. 

“Memory is a critical scaling factor for AI inference, and that aligns with one of our core strengths. Reflecting strong memory demand and disciplined execution, we are raising our full-year net sales and EPS outlook,” Shaikh added. 

Details

PENG reported net sales for the second quarter of $343 million, down 6% versus the year-ago quarter, but was above analysts’ estimates of $339 million as per data from Stocktwits data. 

It reported adjusted diluted earnings per share of $0.52 for the second quarter, flat year-over-year. The adjusted profit was well above average analysts’ projection of $0.42 per share, as per data from Stocktwits. PENG reported its gross margin of 31.2%, up 40 basis points versus the year-ago quarter

Outlook

PENG said it expects adjusted net sales growth of 12% year-over-year +/-5%  for fiscal year 2026.  

It expects adjusted diluted earnings per share of $2.15, +/- $0.15 for the period. 

Retail Reaction

Retail sentiment around PENG trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume. 

One bullish user predicted that PENG stock will ‘explode’.

Another user praised the company’s performance in the quarter. 

Shares in the company are down 8% so far in 2026.