Penguin Solutions Delivers Strong Q2 Results, Analysts Say 2025 Is Tracking 'Above Expectations'

Shares of Penguin Solutions Inc (NASDAQ:PENG) tanked in early trading on Thursday, even after the company posted better-than-expected results for its second quarter on Wednesday.

The company delivered "another strong quarter" and its progress in fiscal 2025 is tracking better than expected, according to Rosenblatt Securities.

The Penguin Solutions Analyst: Analyst Kevin Cassidy maintained a Buy rating and price target of $27.

The Penguin Solutions Thesis: The company posted revenue of $366 million, exceeding consensus of $344 million and representing the fifth quarter in a row of sequential growth,Cassidy said in the note.

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The outperformance was driven by "robust performance in Advanced Computing (+42% Y/Y), Integrated Memory (+26% Y/Y), and continued margin improvements in Optimized LED," he added.

Penguin Solutions reported new Advanced Computing customers and witnessed rising demand for its Memory Solutions, the analyst stated. "We see the addition of three new customers during the quarter as evidence of management’s strategy playing out and continuing demand for AI/HPC systems, software, and maintenance," he wrote.

The company ended the quarter with $647 million in cash and cash equivalents, up from $394 million in the prior quarter, Cassidy said.

Management raised their full-year revenue growth target from +15% to 17%.

PENG Price Action: Shares of Penguin Solutionshad declined by 10.19% to $16.21 at the time of publication on Thursday.

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