TLDR
- Penguin Solutions (PENG) jumped 13.5% to $89.03 after beating Q3 EPS estimates by $0.21, reporting $0.84 vs. the $0.63 consensus
- Revenue came in at $478.71 million, well above the $405.53 million estimate
- Management raised full-year adjusted EPS guidance to $2.55–$2.65 and revenue to $1.64B–$1.69B
- Barclays raised its price target from $27 to $40, though still below current trading levels; Citizens JMP went highest at $85
- The stock hit a new 52-week high of $87.78, trading 189% above its 200-day moving average
Penguin Solutions (PENG) reported fiscal Q3 results on July 7th that came in well ahead of expectations, sending the stock to a new 52-week high on Thursday.
PENG opened at $85.74 and climbed to $89.03 by mid-session, up 13.46% on the day. That puts it roughly 189% above its 200-day moving average of $29.83.
Adjusted EPS came in at $0.84, beating the $0.63 consensus by $0.21. Revenue hit $478.71 million, topping the $405.53 million estimate by more than 17%.
Guidance Raised, AI Narrative Strengthened
Management lifted its full-year outlook, raising adjusted EPS guidance from $2.30 to a range of $2.55–$2.65. Revenue guidance moved up to $1.64B–$1.69B from a prior $1.60B target.
On the earnings call, executives pointed to AI workloads shifting from early experimentation into production-scale inference and agentic AI. They described memory demand as structural rather than cyclical.
The company cited specific customer wins. Deepgram expanded capacity and acquired ClusterWareAI. A tier-one financial customer bought additional MemoryAI KV Cache servers for on-premises code-generation inference.
PENG also highlighted Spectra, a sovereign deployment built with Sandia National Laboratories and NextSilicon, as an example of the kind of high-value contracts driving momentum.
Analysts Lift Targets Across the Board
The earnings beat triggered a wave of analyst revisions. Citizens JMP raised its target to $85, Rosenblatt went to $75, and Stifel moved to $75, all with Buy or Market Outperform ratings.
Barclays raised its target from $27 to $40 but kept an Equal Weight rating. That new target still implies significant downside from current prices, making it the most cautious call in the group.
Zacks upgraded PENG to Strong Buy on June 30th ahead of the report. MarketBeat now shows a Moderate Buy consensus with an average price target of $54.88 across the analyst group.
Management did flag some headwinds for Q4. It expects less memory-pricing favorability compared to Q3, which could weigh on gross margins. Extended component lead times and higher memory costs were also cited.
Insider selling has been active in recent months. SVP Joseph Gates Clark sold 10,351 shares at $58.87 in early June. Director Sandeep Nayyar sold 12,893 shares at $45.09 in May. Over the last 90 days, insiders have offloaded 70,574 shares worth around $3.2 million.
On the institutional side, several funds have been adding. California State Teachers Retirement System raised its position by 52.8% in Q1. Pacer Advisors increased its stake by 34%.
The stock’s 50-day SMA sits at $56.59. The 200-day SMA is at $33.09. PENG is trading roughly 54% above the 50-day and 29% above its 20-day SMA of $66.77.
The stock hit a 1-year high of $87.78, with a 1-year low of $16.04, reflecting just how fast the AI infrastructure trade has repriced this name.
At the time of publication, PENG was up 13.46% at $89.03, trading at a new 52-week high.
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