Penguin Solutions Raises Guidance Despite Q3 Challenges

Penguin Solutions reported mixed fiscal third-quarter results, with revenues rising 8% year-over-year to $324.3 million but missing analyst expectations. Adjusted earnings per share were $0.47, beating consensus estimates, though GAAP per-share results showed a slight loss. Advanced computing sales, the company's largest segment, declined from the prior year due to ongoing supply chain constraints and longer lead times. Despite these challenges, Penguin Solutions raised its full-year adjusted earnings guidance to $1.80 per share, citing strong demand for AI and high-performance computing. The company's financial health has improved, with net income turning positive compared to a loss last year, and shares have outperformed the broader market in 2024. Management remains focused on growth in key segments and operational improvements amid a challenging macroeconomic environment.