Penguin Solutions (NASDAQ:PENG) reported its financial results for the second quarter of fiscal 2026 on Wednesday, April 1.
Net sales for the second quarter totaled $343 million, representing a 6% decrease compared to the $365 million reported in the second quarter of fiscal 2025.
Despite the lower sales volume, the company demonstrated improved profitability in its core operations.
Non-GAAP gross margin rose to 31.2%, up 40 basis points year-over-year, reflecting a more favorable mix of high-margin services and advanced computing hardware.
On the bottom line, Penguin Solutions reported a substantial increase in GAAP diluted earnings per share, which rose to $0.58 from $0.09 in the prior-year period.
This GAAP increase was largely driven by non-recurring items and structural adjustments within the company's financial reporting.
On an adjusted basis, non-GAAP diluted EPS remained steady at $0.52, matching the results from the second quarter of fiscal 2025.
The company’s GAAP gross margin for the quarter was 27.3%, down 130 basis points from the previous year, primarily due to the timing of specific project rollouts and amortization related to its evolving product portfolio.