Penguin Solutions, Inc. reported significant revenue growth in its fiscal year ended August 28, 2026, with total net sales reaching $1.73 billion. This represents a 26.5% increase from the previous fiscal year's $1.37 billion. The company's Integrated Memory segment was the primary driver of this growth, experiencing a 99.0% increase in net sales to $924.0 million, largely attributed to favorable pricing and increased volumes for DRAM and Flash products driven by AI demand. Conversely, the Advanced Computing segment saw a 13.8% decrease in net sales to $558.8 million, primarily due to the wind-down of its Penguin Edge business and the non-recurrence of large hyperscale hardware sales from the prior year. The Optimized LED segment's net sales declined by 2.9% to $248.7 million.
The company's profitability saw a substantial improvement, with net income attributable to Penguin Solutions reaching $180.6 million for the fiscal year ended August 28, 2026, a significant increase from $25.4 million in the prior year and a reversal from a net loss of $52.5 million in fiscal year 2024. This surge in profitability is reflected in the operating income, which grew to $165.6 million in fiscal year 2026, compared to $58.1 million in fiscal year 2025. The company's gross profit margin was 27.7% in fiscal year 2026, a slight decrease from 28.8% in fiscal year 2025, attributed to the wind-down of the Penguin Edge business and shifts in the overall sales mix.
Penguin Solutions made several strategic and operational changes during the fiscal year. The company completed the divestiture of its remaining 19% interest in SMART Brazil, fully exiting the business. In the fourth quarter of fiscal year 2026, the company fully discontinued its Penguin Edge product portfolio to focus on higher-growth opportunities. Additionally, the company underwent a U.S. Domestication on June 30, 2025, redomiciling its parent company from the Cayman Islands to Delaware. The company's employee headcount was approximately 2,800 as of August 28, 2026.
Looking ahead, Penguin Solutions anticipates continued growth, particularly in its Integrated Memory and Advanced Computing segments, driven by the accelerating adoption of AI and the demand for advanced data center infrastructure. The company's strategy centers on its Full-Stack AI Factory Platform, aiming to help customers accelerate AI deployment and optimize their investments. While the company expects to continue exploring acquisition opportunities, it also faces ongoing risks related to macroeconomic conditions, supply chain disruptions, and intense market competition. The company's outlook suggests a focus on leveraging its integrated platform and expanding its customer base in the evolving AI and data center markets.
About Penguin Solutions, Inc.
Penguin Solutions designs and delivers high-performance computing, memory, and LED solutions for enterprise, government, and industrial markets. Its core segments include advanced computing platforms for AI and cloud, specialty memory modules and storage, and energy-efficient LED products. The company focuses on tailored, high-quality, long-lifecycle products, leveraging proprietary technology, global manufacturing, and supply chain services to support innovation and mission-critical applications worldwide.
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