Penguin Solutions Q3 2025: Unpacking Key Contradictions in Partnerships, Growth Drivers, and Revenue Strategies

Partnerships and new customer acquisitions, memory segment growth drivers, services and software revenue growth, inventory management and timing of shipments, partnership and collaboration strategy are the key contradictions discussed in Penguin Solutions' latest 2025Q3 earnings call.



Revenue and Earnings Growth:
- Penguin Solutions reported revenue of $324 million for Q3, up 7.9% year-over-year.
- The growth was driven by increased investment in AI infrastructure and the initial stages of corporate build-outs at scale.

Memory Segment Performance:
- The Integrated Memory segment achieved $130 million in revenue for Q3, up 24% compared to the prior quarter.
- The increase was due to strong demand from computing, networking, and telecommunications customers, with stable pricing in DRAM and NAND.

Advanced Computing Trends:
- Advanced Computing revenue was $132 million in Q3, down from the prior quarter, primarily due to the timing of a large deployment.
- Despite the decline, the segment showed potential with new customer bookings and increased interest in neo-cloud and enterprise customer opportunities.

Profitability and Financial Outlook:
- Penguin Solutions delivered non-GAAP diluted earnings per share of $0.47, a 25% increase year-over-year.
- The company reaffirmed its full-year revenue growth outlook at 17% and raised its non-GAAP diluted earnings per share outlook to $1.80 per share at the midpoint.