PENG earnings analysis
What we found in PENG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Penguin Solutions reported strong Q3 2026 results, with revenue reaching $478.7 million, surpassing expectations of $424.1 million, and earnings per share (EPS) of $0.84, significantly above the consensus estimate of $0.55. This marks an impressive growth compared to previous quarters, reflecting robust market demand across segments. The company revised its full-year revenue growth forecast upward to approximately 22%.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Record Revenue of $478.7M
- Revenue increased by 39% compared to the prior quarter's $343M and represents a significant leap from $366M year-over-year.
- EPS Beats Estimates at $0.84
- Diluted EPS increased from $0.58 in the previous quarter to $0.84, marking a notable rise and exceeding expectations.
- Gross Margin Improvement
- Gross margin increased to 29.1%, up from 27.3% in the previous quarter, indicating better cost management.
- Strong Operating Income
- Operating income rose to 10.5% from 7.5% in Q2 2026, showcasing operational efficiency.
- High Free Cash Flow of $100M
- Free cash flow for the quarter reported at $100M, a significant recovery from lower volumes in prior quarters.
- Increased Cash Reserves
- Cash and cash equivalents rose to $440.3 million from $400 million at the end of the last quarter.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- CFO Transition Risks
- Continued transition in financial leadership may affect operational stability during critical growth phases.
- Currency Fluctuation Risk
- A 10% adverse change in foreign exchange rates could lead to non-operating losses of approximately $3.7 million.
- Variable Interest Rate Risk
- A 1.0% increase in interest rates on $100 million of debt could lead to an annual interest expense increase of $4 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.84
- Gross margin
- 29.1%
- Operating margin
- 10.5%
What they said about what is next.
Management raised full-year revenue growth guidance to 22%, reflecting strong ongoing demand.
The filing reads better than the one before it.
What came before.
- 10-Q · April 1, 2026
- Penguin Solutions, Inc. reported a strong Q2 for 2026, with actual revenue of $343 million, slightly lower than the prior quarter but exceeding estimates. The diluted EPS of $0.52 substantially outperformed expectations…
- 10-Q · January 6, 2026
- Penguin Solutions, Inc. reported a revenue of $343 million for Q1 2026, reflecting a moderate increase from the prior quarter. The company achieved a surprising EPS of $0.49, outperforming estimates, while gross and…
- 10-K · October 21, 2025
- Penguin Solutions, Inc. reported a robust increase in revenue to $1.37 billion for FY 2025, reflecting a 16.9% year-over-year growth primarily driven by gains in Advanced Computing and Integrated Memory segments.…
- 10-Q · July 8, 2025
- Penguin Solutions, Inc. reported Q3 2025 financial results with a notable decline in revenue and operating margin but achieved a positive turnaround in earnings per share. Revenue decreased to $324 million from the…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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