Shares of Penguin Solutions, Inc. (NASDAQ: PENG) surged 5.26% in after-hours trading on Wednesday following the release of the company's strong second-quarter fiscal 2025 financial results and raised annual revenue outlook.

The technology solutions provider reported quarterly earnings that significantly exceeded analyst expectations. Penguin Solutions posted non-GAAP diluted earnings per share of $0.52, handily beating the consensus estimate of $0.38 by 36.84%. This represents a substantial 92.59% increase from $0.27 per share in the same quarter last year. Revenue for the quarter also surpassed expectations, coming in at $365.52 million compared to analyst projections of $344.97 million, marking a 28.33% year-over-year increase.

Adding to investor optimism, Penguin Solutions raised its revenue outlook for the full fiscal year 2025. The company now expects net sales growth of 17% year-over-year, plus or minus 3%, up from its previous guidance of 15% growth, plus or minus 5%. CEO Mark Adams commented on the results, stating, "We are pleased with the progress we are making in fiscal year 2025. Our results reinforce our capabilities in managing the complexity of AI for our valued customers." The strong earnings beat, impressive revenue growth, and improved outlook likely contributed to the stock's after-hours surge as investors responded positively to Penguin Solutions' ability to exceed expectations and capitalize on growth opportunities in the rapidly evolving technology sector.