Penguin Solutions, Inc. (PENG)

Penguin Solutions beat expectations on both the top and bottom line in the third fiscal quarter of 2026, reported July 7, as revenue of $478.7 million topped the $407.5 million estimate, +17.5%, and adjusted EPS of $0.84 topped the $0.54 estimate, +56%. Revenue rose ~48% year over year to roughly $478.7 million from about $324.3 million a year ago, alongside adjusted EPS up ~79% from $0.47. Profitability tracked higher volume on the larger revenue base, with gross profit of about $133.2 million translating to a gross margin near 28%, while operating income of roughly $50.9 million put operating margin around 11%. Cash flow was a swing point in the quarter, with negative operating cash flow of about $74.8 million, even as the company repurchased roughly $11.8 million of stock and paid about $2.9 million in dividends. For the next period, consensus calls for EPS of $0.75 on revenue of $519.3 million.