Penguin Solutions’ Q3 FY2026 revenue rose 47.6% year over year, but most of that growth came from Integrated Memory—not evenly across its businesses. Integrated Memory sales more than doubled, while Advanced Computing edged higher for the quarter but remained down sharply for the first nine months. Gross margin also fell. The results show real reported growth that the company links partly to AI demand, alongside a revenue mix whose growth and profitability vary by business.
Is Penguin Solutions’ AI growth real?
Yes, in the limited and important sense that Penguin reported substantial growth in a business it says is benefiting from AI-related demand. For the quarter ended May 29, 2026, net sales were $478.713 million, up 47.6% from $324.251 million a year earlier. The company said the increase was primarily driven by Integrated Memory. Its filing attributed that segment’s growth to DRAM and Flash momentum, with AI-driven demand supporting favorable pricing and higher volume. These are company-reported results and management’s explanation, not an independent measure of the AI infrastructure market.
Penguin describes itself as a provider of memory and AI infrastructure for enterprise, sovereign AI and neocloud customers. Its full-stack offering includes infrastructure software, advanced memory, compute systems, services and partner solutions. That context matters: the figures concern an enterprise-oriented business, not consumer AI products. Penguin Solutions’ Q3 FY2026 earnings release includes CEO Kash Shaikh’s characterization that Integrated Memory more than doubled year over year and the AI Infrastructure business continued to build momentum. That is management’s assessment, not outside validation.
How much of Penguin’s revenue comes from AI?
The reported financial statements do not give a dollar figure for AI revenue as a separate category, so it is not possible to calculate what share of total sales came specifically from AI. Integrated Memory is the largest segment and the company links its growth partly to AI demand, but the segment also sells DRAM and Flash; its reported revenue should not be treated as wholly AI revenue. Advanced Computing includes AI infrastructure activity, but its total segment sales likewise are not an AI-only figure.
#1 Best Overall
- Read Before You Buy — No Video Output: These adapters support charging and USB 2.0 data transfer, but cannot transmit video signals. Except for standard USB webcams (which use USB data only), they are not compatible with HDMI/DisplayPort cables, video-capable USB-C hubs, or docking stations with video output.
- Convert USB-A Ports to USB-C: Designed to connect USB-C earphones, cables, flash drives, card readers, and other USB-C accessories to standard USB-A ports. Plug-and-play with no drivers or software required.
- Aluminum Alloy Housing: Built with a sturdy aluminum alloy shell that aids in heat dissipation and protects against daily wear and scratches. Designed to maintain a stable and secure connection.
- Compact & Travel-Friendly: The ultra-compact design allows the adapter to stay plugged into your device without blocking adjacent ports or adding bulk, reducing wear and tear on your original USB ports.
- 12-Month Warranty: Backed by a 12-month manufacturer warranty for peace of mind. Designed to meet strict quality control standards for reliable everyday performance.
The Q3 segment totals show where revenue was concentrated:
| Business unit | Q3 FY2026 sales | Share of Q3 total | Q3 year-over-year change | First-nine-month year-over-year change |
|---|---|---|---|---|
| Integrated Memory | $275.067 million | 57.4% | Up $144.9 million, or 111.4% | Up $251.1 million, or 75.6% |
| Advanced Computing | $137.583 million | 28.7% | Up $5.1 million, or 3.8% | Down $105.3 million, or 20.6% |
| Optimized LED | $66.063 million | 13.8% | Up $4.4 million, or 7.2% | Down $11.9 million, or 6.3% |
| Total | $478.713 million | 100% | Up 47.6% | Not stated as a percentage by segment in the cited filing |
Dollar sales and reported changes are from Penguin’s Form 10-Q for the quarter ended May 29, 2026. Segment shares above are calculated from the reported Q3 sales and total; percentages may not sum to exactly 100% because of rounding.
Rank #2
- 5-in-1 USB-C Hub: Experience comprehensive connectivity featuring a Power Delivery input, two USB-A 2.0 ports, a USB-A 3.0 port, and an HDMI port. (Note: The USB-C power delivery input port is only for connecting an external wall charger to power your laptop and cannot power peripheral devices.)
- 90W Pass-Through Charging: Achieve optimal charging with 90W pass-through power to your laptop, supported by a total input of 100W, with the hub reserving 10W for operational efficiency. (Note: Wall charger not included.)
- Quick Data Transfers: Accelerate your productivity with rapid data transfers using a high-speed 5Gbps USB 3.0 port and two 480Mbps USB 2.0 ports.
- 4K HDMI Display: Enhance your visual experience with a hub capable of delivering 4K resolution at 30Hz in both mirror and extend modes. Please note that this hub is compatible with MacBook (macOS 12 and newer), Windows 10 and 11, ChromeOS, and laptops equipped with DP Alt Mode and Power Delivery. Note: This device is not compatible with Linux.
- What You Get: Anker USB-C Hub (5-in-1, 4K HDMI), welcome guide, 18-month warranty, and our friendly customer service.
Which Penguin Solutions business is growing fastest?
Integrated Memory
Integrated Memory was both the largest segment and the fastest-growing by a wide margin in Q3. Its $275.067 million in sales represented about 57.4% of the company’s quarterly total. Sales rose 111.4% year over year in Q3 and 75.6% for the first nine months of FY2026. The company cited DRAM and Flash momentum, AI-linked demand, favorable pricing and increased volume.
Advanced Computing
Advanced Computing brought in $137.583 million in Q3, up 3.8% year over year. Penguin attributed quarterly strength to non-hyperscale AI infrastructure, partly offset by the Penguin Edge wind-down. Over the first nine months, however, sales fell 20.6%. The filing says the comparison reflects both the wind-down and hyperscale hardware sales in 2025 that did not recur in 2026. A modestly positive quarter therefore does not yet reverse the year-to-date decline.
Rank #3
- Sleek 7-in-1 USB-C Hub: Features an HDMI port, two USB-A 3.0 ports, and a USB-C data port, each providing 5Gbps transfer speeds. It also includes a USB-C PD input port for charging up to 100W and dual SD and TF card slots, all in a compact design.
- Flawless 4K@60Hz Video with HDMI: Delivers exceptional clarity and smoothness with its 4K@60Hz HDMI port, making it ideal for high-definition presentations and entertainment. (Note: Only the HDMI port supports video projection; the USB-C port is for data transfer only.)
- Double Up on Efficiency: The two USB-A 3.0 ports and a USB-C port support a fast 5Gbps data rate, significantly boosting your transfer speeds and improving productivity.
- Fast and Reliable 85W Charging: Offers high-capacity, speedy charging for laptops up to 85W, so you spend less time tethered to an outlet and more time being productive.
- What You Get: Anker USB-C Hub (7-in-1), welcome guide, 18-month warranty, and our friendly customer service.
Optimized LED
Optimized LED generated $66.063 million in Q3. Sales increased 7.2% for the quarter, which the company linked to stronger channel demand and higher direct sales, but declined 6.3% for the first nine months amid broad-based weaker demand. It is smaller than the other two segments and had mixed quarterly and year-to-date direction.
Why did revenue rise while gross margin fell?
Revenue growth and margin improvement are different outcomes. Penguin’s Q3 gross margin was 27.8%, down from 29.3% a year earlier. For the first nine months, gross margin was 27.7%, compared with 28.9% in the same period of FY2025. The company attributed the declines primarily to the Penguin Edge wind-down and a shift in sales mix across business units.
Rank #4
- Dual Converters, Infinite Potential：Includes 2× USB C male to USB A female adapters and 2× USB A male to USB C female adapters. Perfect for a wide range of uses—tablets with Bluetooth keyboards, expand USB ports on macbook, and more. Two different converters for all your daily needs
- Next-Level 10Gbps & 3A Charging: No more slow 480Mbps, this usb to usb c adapter has a transfer speed of up to 10Gbps, allowing you to do more transferring in less time. This usb adapter fits both USB A and USB C charger, supporting up to 3A fast charging
- Upgraded Exquisite Craftsmanship: With an aluminum alloy housing and metal connector, the usbc to usb adapter is extremely durable and sturdy. Rigorously tested to withstand more than 10,000 times of plugging and unplugging, ensuring long-lasting performance
- Broad Compatible: The usb c to usb adapter widely supports all USB C/ USB A devices like laptops, tablets, cellphones, car chargers, and phone chargers. Such as compatible with MacBook Pro/Air 2023/2022, Thunderbolt 4/3 Devices,Apple MagSafe Watch 9/8/7/SE/Ultra, iPad Pro 2022/2021, Samsung Galaxy S23/S20/S10, and iPhone 17/16/15 Pro. Plug and play
- Please Note: To reach 10Gbps speed, keep the cable under 3.3 ft. For USB A Male to USB C adapters, try flipping the USB C connector. USB C Male to USB A adapters support bidirectional 10Gbps transfer within 3.3 ft
The results do not provide a basis for assigning the margin decline to one precise cause or calculating how much each segment contributed to it. They do show that rapid growth in a high-revenue segment can coexist with lower consolidated gross margin when the mix of sales changes and other business transitions are underway. Investors should distinguish the growth rate of sales from the profitability of those sales.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What could change the revenue mix and outlook?
Penguin’s 10-Q says its AI infrastructure business is transitioning from reliance on hyperscalers toward a more diversified base of enterprise, neocloud and sovereign AI customers. The company warns that this transition may negatively affect sales. It also notes that short-term fixed resource commitments can make changes in expected sales mix affect operating income and margins.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Best Value
- 5-in-1 Connectivity: Equipped with a 4K HDMI port, a 5 Gbps USB-C data port, two 5 Gbps USB-A ports, and a USB C 100W PD-IN port. Note: The USB C 100W PD-IN port supports only charging and does not support data transfer devices such as headphones or speakers.
- Powerful Pass-Through Charging: Supports up to 85W pass-through charging so you can power up your laptop while you use the hub. Note: Pass-through charging requires a charger (not included). Note: To achieve full power for iPad, we recommend using a 45W wall charger.
- Transfer Files in Seconds: Move files to and from your laptop at speeds of up to 5 Gbps via the USB-C and USB-A data ports. Note: The USB C 5Gbps Data port does not support video output.
- HD Display: Connect to the HDMI port to stream or mirror content to an external monitor in resolutions of up to 4K@30Hz. Note: The USB-C ports do not support video output.
- What You Get: Anker 332 USB-C Hub (5-in-1), welcome guide, our worry-free 18-month warranty, and friendly customer service.
- Memory pricing and volume: The company’s current Integrated Memory growth reflects favorable pricing and higher volume, but memory pricing is volatile.
- Customer concentration and order timing: Customer concentration and when large orders are placed can make quarterly comparisons uneven.
- Demand and mix: Shifts among customers, products and business units can change both sales and margins.
- Supply availability: Supply constraints can affect the company’s ability to meet demand.
- Penguin Edge wind-down: The company expected to complete the wind-down by the end of FY2026, making its effects relevant to near-term comparisons.
Partner announcements and awards are not substitutes for reported sales. The Q3 release announced Penguin’s NVIDIA AI Factory Specialized Partner status and Dell Technologies Global Alliances Americas AI Partner of the Year recognition; neither, by itself, establishes future revenue or independently validates the growth outlook.
How should investors read Penguin’s FY2026 guidance?
As of the July 7, 2026 earnings release, Penguin forecast FY2026 net-sales growth of 22%, plus or minus 2%. It also guided to GAAP diluted EPS of $1.97, plus or minus $0.05, and non-GAAP diluted EPS of $2.60, plus or minus $0.05. These are company forecasts, not reported full-year results, and remain subject to the risks the company describes. The release and subsequent filings should be checked for any updated guidance or later results.
For primary-source details, see the Q3 FY2026 earnings release, the Form 10-Q, and Penguin’s quarterly results page.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →
