Penguin Solutions lifted its fiscal 2027 forecast after a fourth quarter that saw adjusted earnings per share hit $1.00 on revenue of $566.7 million, both comfortably ahead of the $0.77-to-$0.78 and $516-to-$521 million ranges analysts had modeled. The quarter ended August 31.
AI memory now three-quarters of the revenue mix
Artificial intelligence infrastructure drove 78 percent of quarterly sales, with AI-related revenue more than doubling year on year. The Integrated Memory segment alone delivered $341 million, a 158 percent increase, while non-hyperscale AI infrastructure revenue nearly doubled. Six new AI infrastructure customers signed in the period, four of them neocloud operators, and a 36,000-GPU factory in Norway anchored the multi-year pipeline.
Backlog visibility underpins the guide
Management said memory orders now stretch at least four quarters, giving line-of-sight to the $2.25-to-$2.60 billion revenue target for fiscal 2027. At the $2.43 billion midpoint that implies roughly 40 percent growth. Adjusted EPS is guided to $3.75-to-$5.15, a 55 percent climb at the $4.45 midpoint. The company reports adjusted figures; GAAP equivalents were not disclosed in the release.
Working capital absorbs the build
The balance sheet shows the cost of that visibility. Cash and short-term investments sat at $647 million, but fourth-quarter operating cash flow was negative $163 million. Inventory swelled to $749 million from $255 million a year ago, and accounts receivable reached $796 million. Deployments are eating cash faster than contracts are converting.
Shares extend a 200-percent year
The stock rose 5.77 percent in Tuesday's regular session and added more than 7 percent in overnight trading, pushing the 2026 gain past 200 percent before this week's move. Investors are pricing the backlog, not the cash conversion, yet.