Why Is PENG Stock Rising More Than 7% Overnight?

• The company attributed its record results to strong AI-driven data center demand for its AI infrastructure and memory businesses.
• Penguin Solutions expects fiscal 2027 net sales to grow about 40% to roughly $2.43 billion, and diluted EPS to increase about 55% to $4.45. 
• CEO Kash Shaikh said in a call with investors that Penguin entered fiscal 2027 with “record company backlog and strong momentum,” with memory backlog extending “to at least 4 quarters” and continuing to strengthen.

Shares of Penguin Solutions Inc. (PENG) closed higher on Tuesday and jumped more than 7% in the overnight session after the enterprise solutions company posted record fourth-quarter (Q4) results. 

The company announced Q4 revenue of $566.69 million, up 68% year-over-year and ahead of Wall Street expectations of $520.99, as per data from Fiscal.ai.

The company posted earnings per share of $1, up 133% year-over-year and ahead of consensus estimates of $0.77. 

Penguin Solutions attributed its record results to strong AI-driven data center demand for its AI infrastructure and memory businesses. 

Penguin Raises Outlook On Growing Backlog

Penguin Solutions expects fiscal 2027 net sales to grow about 40% to roughly $2.43 billion, with Integrated Memory revenue expected to rise about 50% on continued AI-driven data-center demand, while diluted EPS is expected to increase about 55% to $4.45. 

Kash Shaikh, president and CEO of Penguin Solutions, said in a statement, “The proof is in the results,” adding that, “As we enter fiscal 2027, our memory business remains strong, and our AI Infrastructure business is accelerating further. Based on this continued momentum, particularly the strength in AI Infrastructure, we are increasing our fiscal 2027 expectations for both net sales and non-GAAP diluted EPS beyond the preliminary growth view shared during the third-quarter earnings call, as we continue to drive strong operating leverage across the business.”

Shaikh said in a call with investors that Penguin entered fiscal 2027 with “record company backlog and strong momentum,” with memory backlog extending “to at least 4 quarters” and continuing to strengthen.

He added that demand for memory products in data centers is increasing, providing both “increased demand” and “durability of the demand,” while newer data-center and inference-focused solutions are becoming an advantage in “solving the inference challenges in the data center.”

Penguin said it is well positioned at the intersection of AI infrastructure and memory, as enterprises increasingly use neocloud providers or build on-premises AI factories, with large companies turning to on-premises systems for high-utilization inference workloads because they can offer better economics, data control, and performance.

PENG Stock: Retail Stance

On Stocktwits, retail sentiment around PENG stock was ‘extremely bullish’ at the time of writing, with message volumes jumping to ‘extremely high’ levels. 

One bullish user said, “$PENG we didn't beat earnings. we smashed it.”

Another user said, “$PENG this might blow past $80 pretty  quickly once the opening bells rings and institutional investors start buying.”

PENG stock has surged more than 216% so far in 2026, bolstered higher by the AI trade. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.