Penguin Solutions 10-K: FY26 Revenue Up 26.5% to $1.73B, $750M Convert Refinancing
PENG has more than doubled off its 52-week low of $16.04.
Summary
Penguin Solutions' FY2026 10-K confirms $1.73B revenue (+26.5%) and $2.60 diluted EPS, with Integrated Memory nearly doubling, and details a $750M convertible note refinancing that cut interest costs but added near-term repayment and conversion obligations.
Key Events · Earnings and Guidance · PENG
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FY26 Revenue Jumps 26.5% to $1.73B
Net sales rose to $1,731.5M from $1,368.8M, with GAAP operating income of $165.6M and diluted EPS of $2.60 versus $0.28 a year earlier.
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Integrated Memory Nearly Doubles
Integrated Memory net sales reached $924.0M, up 99.0% on AI-driven DRAM and Flash pricing and volume, while Advanced Computing fell 13.8% to $558.8M after the Penguin Edge wind-down.
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$750M Convertible Refinancing Completed
July 2026 issuance of 0.00% notes due 2031 at a ~$116.70 conversion price raised $735.2M net; induced exchanges of 2029/2030 notes cost $295.5M cash plus 8.7M shares and $33.2M of expense.
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Near-Term Cash Obligations Flagged
A $93.0M customer cash advance is due by the first week of December 2026, and $54.5M of 2029/2030 notes are convertible through November 27, 2026 with principal payable in cash.
Analysis · PENG · Manufacturing
The annual report locks in the numbers behind the October 6 blowout quarter and shows where the growth came from: Integrated Memory nearly doubled to $924M on AI-driven DRAM and Flash pricing, while Advanced Computing shrank 13.8% as Penguin Edge wound down and 2025 hyperscale hardware did not repeat. The balance sheet changed materially in July, when the company issued $750M of 0.00% convertible notes due 2031 and used part of the proceeds to induce conversions of older 2029 and 2030 notes, paying $295.5M cash plus 8.7M shares and booking $33.2M of inducement expense. That refinancing pushed debt to $789M and interest expense down to just $0.4M, but it also left $93M of customer advances due by early December 2026 and $54.5M of remaining notes convertible through November 27, 2026. The $68.7M tax valuation allowance release flattered net income and EPS, and operating cash flow was negative $151.9M because inventory and receivables ballooned to support the memory business. No going-concern language, no restatement, and controls were unqualified.
How filings like this one have moved
In the 30 days to Oct 20, 2026, 37.4% of the 952 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.87%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, PENG was trading at $56.80 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $2.9B. The 52-week trading range was $16.04 to $89.86. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.