Citizens Sees Continued Upside for Penguin Solutions (PENG) After Solid Q4 Earnings Beat

Penguin Solutions, Inc. (NASDAQ:PENG) is one of the Trending AI Stocks on Wall StreetOn October 8, Citizens reiterated its Market Outperform rating on the stock with a $26.00 price target. The rating affirmation follows the company’s fiscal fourth-quarter and full-year 2025 results.

The company reported revenue of $337.9 million for the fourth quarter, slightly below the consensus estimate of $342.5 million. In particular, its Integrated Memory segment demonstrated strong performance, generating revenue of $138.3 million.

This revenue represents an increase of 44% year-over-year, outperforming consensus expectations of $124.1 million, which had estimated 29% growth.

The company’s non-GAAP earnings per share were $0.43, exceeding the consensus estimate of $0.38. This is despite the slight revenue miss in the quarter.

Penguin Solutions, Inc. (NASDAQ:PENG) is a leading AI and HPC computing company engaged in the design and development of enterprise solutions worldwide.

While we acknowledge the risk and potential of PENG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PENG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.