Penguin Solutions lifts fiscal 2027 sales outlook to US$2.43B

A 40 per cent annual sales growth target has made memory orders and neocloud deployments the next test of the AI infrastructure buildout. Penguin Solutions, Inc. NASDAQPENG, the Fremont, California supplier of memory systems, computing equipment and data-centre deployment services, reported on Oct. 6 that fiscal fourth-quarter sales rose 68 per cent to US$567 million. It lifted its fiscal 2027 sales midpoint to US$2.43 billion from a preliminary US$2.17 billion.

Penguin shares closed Oct. 6 at US$64.21 on Nasdaq, up 5.77 per cent as of 4 p.m. ET, according to the NASDAQPENG quote page. A pre-results AlphaStreet schedule placed the release after the market close, so that price cannot measure a response to the new forecast.

The same AlphaStreet compilation, dated Oct. 1, put analysts' fiscal fourth-quarter sales estimate at US$519.3 million. Penguin's US$567 million exceeded that estimate by roughly US$48 million. The fiscal 2027 forecast calls for about 40 per cent growth, with a range of 10 percentage points on either side. Its US$2.17 billion comparison is management's earlier preliminary outlook, not a verified analyst consensus for the coming year.

The company reported US$93 million of quarterly net income, up 888 per cent from the year-earlier quarter. Its fiscal year ended Aug. 28. The upcoming IR events list begins with the Dec. 9 Barclays Global Tech conference.

Memory Drove Quarterly Sales Growth

Integrated Memory sales reached US$340.8 million in the fourth quarter, against US$132.2 million a year earlier, according to Penguin's Oct. 6 results table. The increase accounts for more than nine-tenths of the company's US$228.8 million year-over-year sales gain. Advanced Computing, the segment containing AI Infrastructure, rose to US$154.0 million from US$138.3 million, a much smaller dollar increase.

Penguin's Oct. 6 prepared earnings remarks put a narrower number on its AI business: non-hyperscale AI Infrastructure sales rose 99 per cent year over year and made up 66 per cent of Advanced Computing revenue. Chief executive Kash Shaikh said the growth offset runoff in traditional computing work. The quarterly segment totals therefore show a fast-growing AI line within a broader computing business, while memory remains the larger source of company-wide growth.

"As we enter fiscal 2027, our memory business remains strong, and our AI Infrastructure business is accelerating further," Penguin chief executive Kash Shaikh said in the Oct. 6 results release.

For the full fiscal year, Integrated Memory sales were US$924.0 million, against US$464.2 million in fiscal 2025. Advanced Computing fell to US$558.8 million from US$648.4 million over the same period, while company-wide sales reached US$1.73 billion. Those annual figures set a harder starting point for judging Shaikh's forecast that AI infrastructure will accelerate in fiscal 2027.

Penguin expects non-GAAP earnings of US$4.45 per diluted share in fiscal 2027, against US$2.87 reported for fiscal 2026. Its Oct. 6 release also listed a completed US$750 million convertible senior notes offering with a zero per cent coupon and a 2031 maturity. The earnings announcement did not assign that financing to any named neocloud deployment.

Six New Customers Joined Penguin

Penguin reported six new AI Infrastructure customers in the fourth quarter, including four neocloud providers. Across fiscal 2026, it said it added 17 new AI Infrastructure customers, while 12 existing customers expanded their business. Those are customer counts, not disclosed sales commitments, so they leave the size and timing of future revenue to be established by later results.

One unnamed neocloud customer, Penguin said, selected it to deploy and operate a 36,000-GPU AI factory in Norway. The customer has US$10 billion in contracted compute from an AI laboratory; that amount describes the customer's contracts, not Penguin's fee. The Oct. 6 announcement gave neither a value for Penguin's own assignment nor a delivery date for the GPUs.

Penguin also said an unnamed publicly traded neocloud with more than US$3 billion in signed multiyear contracts chose it for deployment and round-the-clock operations services. That US$3 billion belongs to the customer's contract book. Penguin did not state how much its services agreement will earn or when those services begin, leaving a gap between customer wins and the US$2.43 billion sales forecast.

Applied Digital Reports Potential Finnish Power

Applied Digital Corporation NASDAQAPLD, the Dallas developer of computing campuses, said in its Oct. 6 release that a Finnish agreement gives it access to up to one gigawatt of potential power. Initial availability is expected in 2028; the release identifies no tenant or rent. Mugglehead's earlier account of the Finnish proposal traced what that power figure could and could not establish.

Read more: Applied Digital Corporation signs Finnish deal for up to 1GW of potential power

Penguin's Oct. 6 results record completed memory and computing sales, while its newly named neocloud assignments still need disclosed fees and delivery schedules. The Barclays event detail dates the conference for Dec. 9-10. A Norway delivery timetable or Penguin fee disclosed there would give investors figures to weigh against its US$2.43 billion fiscal 2027 sales outlook.