By Katherine Hamilton
Shares of Penguin Solutions shares rose after raising its full-year outlook, driven by soaring demand for memory.
The stock rallied 13% to $20.60 in after-hours trading Wednesday. Through the close, the stock has lost 7% of its value this year.
The high-performance computing provider now expects full-year sales to increase 12% at the midpoint, up from the 6% growth it was previously anticipating.
It is also guiding for annual adjusted earnings per share of $2.15 at the midpoint, plus or minus 15 cents. That is an increase from the prior outlook of $2.00, plus or minus 25 cents.
Chief Executive Kash Shaikh said the increased outlook reflects strong demand for memory.
"Memory is a critical scaling factor for AI inference, and that aligns with one of our core strengths," Shaikh said.
Sales in the second quarter, which ended in February, were $343 million, ahead of the $339 million analysts polled by FactSet expected.
Adjusted earnings were 52 cents a share, 10 cents above Wall Street's estimates for 42 cents.
Integrated memory sales jumped 63%, while revenue in advanced computing and optimized LED revenue declined.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
April 01, 2026 17:17 ET (21:17 GMT)
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