
PENG Stock Forecast & Price Target
PENG Analyst Ratings
Bulls say
Penguin Solutions Inc. has demonstrated strong financial performance, with a fourth-quarter revenue of $132 million, reflecting a year-over-year increase of 38% and a quarter-over-quarter increase of 24%, primarily supported by steady DRAM/NAND pricing and robust adoption of DDR5 technology. The Integrated Memory segment, which accounts for 34% of FY25 revenue, grew by 30% year-over-year, while the Advanced Computing segment, representing 47% of FY25 revenue, increased 17% year-over-year due to expanding AI and HPC infrastructure across various markets. Overall, the company’s core portfolio, excluding specific hardware and the Edge business, is projected to achieve a growth rate of approximately 30% for FY26, with substantial demand anticipated from enterprise and federal AI projects.
Bears say
Penguin Solutions Inc experienced a significant drop in cash and cash equivalents, declining from $736 million in the previous quarter to $434 million in 4QFY25, which raises concerns regarding liquidity and financial stability. Despite a revenue increase of 4.2% quarter-over-quarter and 8.6% year-over-year to $338 million, the results fell short of consensus estimates, indicating potential struggles to meet market expectations, especially with management projecting a 9% year-over-year decline in Meta-related revenue. Furthermore, the company’s reliance on lower-margin memory business growth while exiting the legacy embedded computing segment introduces additional headwinds, potentially dampening profitability and contributing to the overall negative outlook.
This aggregate rating is based on analysts' research of Penguin Solutions Inc and is not a guaranteed prediction by Public.com or investment advice.
PENG Analyst Forecast & Price Prediction
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