Penguin Solutions, Inc. (PENG) surged 6.65% in after-hours trading on Tuesday following the release of its better-than-expected fiscal Q1 2026 earnings report. The tech solutions provider reported adjusted earnings of $0.49 per share, beating the consensus estimate of $0.44, while revenue rose to $343.07 million, surpassing expectations of $338.64 million.
The company attributed its solid performance to growth in its Integrated Memory segment and operational excellence. CEO Mark Adams highlighted a shift in the AI market toward enterprise adoption and production-scale deployments, which aligns with Penguin Solutions' strengths in solution design and integration.
Penguin Solutions also reaffirmed its fiscal 2026 guidance, projecting net sales growth of 6% and adjusted EPS of $2.00 +/- $0.25. The upbeat results and outlook fueled investor optimism, driving the stock higher in extended trading.

