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Penguin Solutions (PENG) Q1 FY26 earnings results (first quarter fiscal 2026)

10-Q filed Jan 6, 2026

Penguin Solutions (PENG) reported revenue of $343M for the first quarter fiscal 2026 (Q1 FY26), +0.6% from a year earlier and +2% from the quarter before. Operating margin was 5.7%, net earnings $5.3M (1.5% of revenue).

Revenue$343M
Year over year+0.6%
Quarter over quarter+2%
Operating margin5.7%
Net earnings$5.3M

Penguin Solutions, Q1 FY26: revenue $343M (+0.6% year over year), operating margin 5.7%, net earnings $5.3M, operating cash flow $31.1M. The chart follows the revenue to costs, profit and cash.

Q1 FY26AmountQ/QY/Y
Revenue$343M+2%+0.6%
Gross profit$96.1M-0.6%-2%
Operating profit$19.6M+57%+13%
Net earnings$5.3M-44%+1%
Operating cash flow$31.1M—+125%
Free cash flow$28.2M—+135%

What changed

Revenue was $343.1M in Q1 FY26, up 1% year over year and up 2% from the previous quarter.

Gross margin was 28.0%, down 0.7 points from a year earlier. Operating profit was $19.6M, a 5.7% margin (up 0.6 points year over year). Of the extra revenue versus a year earlier, 113% reached operating profit, above the 5% margin then. Operating expenses fell 5% while revenue rose 1%. Net earnings were $5.3M, up 1% year over year. The effective tax rate was 23.0%.

Operating cash flow was $31.1M (up 125% year over year), 513% of net income including minority interests. Non-cash charges added back $12.8M of depreciation and amortization and $10.1M of share-based compensation. Working capital and other items added $2.1M. Capital expenditures of $2.9M left free cash flow of $28.2M.

Questions

What was Penguin Solutions' revenue in the first quarter fiscal 2026?

Penguin Solutions (PENG) reported revenue of $343M for the first quarter fiscal 2026 (Q1 FY26), +0.6% from a year earlier and +2% from the quarter before.

Was Penguin Solutions profitable in the first quarter fiscal 2026?

Operating profit was $19.6M (5.7% of revenue) and net earnings $5.3M.

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Source: Penguin Solutions 10-Q on SEC EDGAR.