PENG Stock: The AI Growth Test Is Now Cash — Q4 FY2026

Penguin Solutions, Inc. (PENG) Q4 FY2026 — The reference close is $64.21; exact release timing is unconfirmed, so this is not labeled a post-earnings reaction.

Penguin Solutions beat expectations and raised its fiscal 2027 outlook. Memory supplied most of the sales increase while working capital absorbed cash. We examine the operating bridge, financing dilution and cash assumptions behind common-share value.

THE CALL: HOLD (3/5, MODERATE) — base-case value ~$60 vs ~$64.21 October 6 regular-session close.

KEY METRICS:

- Q4 revenue $566.685M, up 67.7% year over year

- Adjusted diluted EPS $1.00; GAAP diluted EPS $1.29

- FY2026 operating cash flow -$151.914M; capex $11.569M

- Computed FY2026 free cash flow -$163.483M

- FY2027 revenue growth outlook 40% ±10 percentage points; adjusted EPS $4.45 ±$0.70

- Base fair value $60; bear $35; bull $100; high uncertainty

What to watch: A price near $48 with the thesis intact, or better cash conversion supporting higher fair value.

Full research packet: https://chargedalpha.com/research/peng-q4-fy2026