Ananda Baruah's questions to Penguin Solutions (PENG) leadership • Q4 2025
Question
Ananda Baruah sought clarification on the 'apples-to-apples' revenue growth, asking if backing out hyperscale hardware and Penguin Edge implied a pro forma 20% growth for FY26. He also questioned if the implied growth for non-hyperscale HPC AI in FY26 could be derived from the guidance and asked about the specific end markets driving potential upside in the HPC AI business.
Answer
Nate Olmstead, SVP and CFO, confirmed that removing the 14% of FY25 revenue from Penguin Edge and hyperscale hardware would result in a calculated pro forma growth rate around 20% for FY26. He indicated that the guidance range for Advanced Computing largely reflects opportunities in the HPC AI space for non-hyperscale customers. Mark Adams, President and CEO, identified financial, federal (government and integrators), education, and sovereign cloud as the primary near-term market opportunities driving a successful FY26, with new CRO Tony Fry also targeting healthcare.