Penguin Solutions Reports Strong Financial Growth

By Tamara Parker • Wednesday, October 08 15:33 • Permanent Link

Penguin Solutions, Inc. has reported its financial results for the fourth quarter and full year of fiscal 2025, highlighting significant increases in net sales and earnings per share (EPS) compared to the prior year.

In fiscal 2025, the company's net sales totaled $1.37 billion, reflecting a 17% increase from the previous fiscal year. The GAAP EPS for fiscal 2025 was reported at $0.28, a substantial improvement from the prior year's loss per share of ($0.85). Additionally, the non-GAAP EPS for fiscal 2025 stood at $1.90, marking a notable 53% increase from the previous fiscal year.

Looking specifically at the quarterly results, the fourth quarter of fiscal 2025 saw a 9% increase in net sales, amounting to $338 million compared to the year-ago quarter. The GAAP diluted EPS for the fourth quarter of fiscal 2025 was $0.11, a significant improvement from the loss per share of $(0.46) reported in the same quarter of the prior year. The non-GAAP diluted EPS for the fourth quarter of fiscal 2025 was $0.43, up from $0.37 in the year-ago quarter.

The company's CEO, Mark Adams, attributed the strong results to "strong execution and meaningful progress in our transformation from a holding company structure to an enterprise AI infrastructure solutions company." He also highlighted the momentum in Penguin Solutions' core businesses and its position as an emerging leader in designing, building, deploying, and managing enterprise AI implementations.

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.

Moreover, the company provided its financial outlook for fiscal year 2026, projecting a 6% year-over-year growth in net sales and a non-GAAP diluted EPS of $2.00, reflecting confidence in its continued financial performance.

As a result of these announcements, the company's shares have moved -7.85% on the market, and are now trading at a price of $27.00. Check out the company's full 8-K submission here.

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