From the archive. This pick came before our first emailed issue. We wrote it on Nov 3, 2026 from sources published around that day, with the same checks as every issue. It isn't part of the track record.
The pick
Penguin Solutions (PENG) had the biggest jump in trading volume compared with its usual level. About 21 million shares traded, 10.5x its 30-day average. The stock rose 13.08%.
What happened
On October 6, 2026, Penguin Solutions reported fourth-quarter and full-year fiscal 2026 results for the period ended August 28, 2026. The company called the results records across key financial metrics. Net sales were a record $567 million, up 68% year over year. Net income was a record $93 million, up 888%. Diluted EPS was $1.29, compared with $0.11 a year earlier. Non-GAAP diluted EPS was $1.00, compared with $0.43.
The company also raised its outlook for fiscal 2027. It now expects net sales of approximately $2.43 billion at the midpoint, which is growth of approximately 40%, plus or minus 10 percentage points. Last quarter's preliminary view implied $2.17 billion at the midpoint. The company also expects non-GAAP diluted EPS of $4.45.
Penguin said it won six new AI Infrastructure data center customers in the quarter, including four neocloud providers. Separately, it listed a win with a neocloud customer that has $10 billion in contracted compute from a leading AI lab. That customer chose Penguin to deploy and operate a 36,000-GPU AI factory in Norway.
The same day, the company named Stephen Cumming as Senior Vice President and Chief Financial Officer, effective immediately. Aaron Johnson, who had been Interim CFO since July 2026, returns to his role as Vice President of Finance and Accounting.
Sources: [press release] [press release 2]
What news reports said
Yahoo Finance reported that shares were up over 15% at $73.88 on Wednesday morning after the record results and higher outlook. [Yahoo Finance] It later reported that the stock ended 13.08% higher at $72.61. [Yahoo Finance]
Yahoo Finance also reported that the Norway project Penguin disclosed closely matches a $10 billion Volta Infrastructure buildout. It said Bloomberg has reported that buildout is for Anthropic. Penguin's own filing does not name the customer. [Yahoo Finance]
Benzinga published a report headlined "These Penguin Solutions Analysts Raise Estimates After Q4 Print, FY27 Outlook Exceed Expectations." [Benzinga]
The numbers
- Previous close: $64.21
- Close: $72.61
- Change: +13.08%
- Volume: 21,009,170
- 30-day average volume: 1,996,452
- Volume multiple: 10.5x
- Behind the move: an earnings report
More coverage
- Penguin Solutions (PENG) Stock Trades Up, Here Is Why (Yahoo Finance)
- Penguin Solutions (PENG) Q4 2026 Earnings Call Transcript (The Motley Fool)
- Penguin Solutions Says Agentic AI Is Creating New Memory Boom (Benzinga)
What happened next
Measured from this day's close. Shown for every pick, good or bad. See the full track record.