Penguin Solutions Reports 17% Sales Increase

By Philip Seaworth • Wednesday, October 08 06:03 • Permanent Link

Penguin Solutions, Inc. (“Penguin Solutions”) has reported its financial results for the fourth quarter and full year fiscal 2025. The company’s net sales for fiscal 2025 increased by 17% compared to the prior year, reaching $1.37 billion, up from $1.17 billion in fiscal year 2024. The GAAP EPS for fiscal 2025 was $0.28, a significant improvement from the prior year's figure of ($0.85), while the non-GAAP EPS stood at $1.90, indicating a 53% increase from the previous year.

In terms of gross margin, the GAAP gross margin for fiscal 2025 was reported at 28.8%, a decrease of 30 basis points compared to fiscal year 2024. Meanwhile, the non-GAAP gross margin for the same period was 31.0%, down by 90 basis points from the previous year.

For the fourth quarter of fiscal 2025, net sales reached $338 million, marking a 9% increase compared to the year-ago quarter. The GAAP gross margin for the quarter was 28.6%, up 60 basis points from the year-ago quarter, while the non-GAAP gross margin remained steady at 30.9% for both the current and year-ago quarters. Additionally, the GAAP diluted EPS for the fourth quarter of fiscal 2025 was $0.11, a positive shift from $(0.46) in the year-ago quarter, while the non-GAAP diluted EPS was $0.43, up from $0.37 in the year-ago quarter.

In a statement, Mark Adams, CEO of Penguin Solutions, highlighted the company's performance, stating that fiscal 2025 demonstrated strong execution and significant progress in the transformation of the company. He noted the momentum in their core businesses and their emerging leadership position in enterprise AI infrastructure solutions.

Penguin Solutions also announced a common stock repurchase authorization of $75 million, bringing the total stock repurchase authorizations over the last four years to $225 million.

Looking ahead, Penguin Solutions provided its financial outlook for fiscal year 2026. The company anticipates a 6% year-over-year growth in net sales, with a non-GAAP outlook for gross margin at 29.5% plus or minus 1%. The company also provided diluted earnings per share guidance of $2.00 plus or minus $0.25.

Penguin Solutions will be hosting a conference call and webcast to discuss its fourth quarter and full year fiscal 2025 results and related matters on October 7, 2025, at 1:30 p.m. Pacific Time.

Today the company's shares have moved 5.59% to a price of $29.30. If you want to know more, read the company's complete 8-K report here.

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