Penguin Solutions, Inc. (NASDAQ:PENG) is one of the 10 Best Stocks That Beat Earnings Estimates. On April 2, 2026, Rosenblatt raised the price target on Penguin Solutions, Inc. (NASDAQ:PENG) to $32 from $30 and maintained a Buy rating, following a fiscal Q2 report that exceeded expectations and prompted management to raise its FY26 revenue growth outlook to 12% from 6%. The firm noted the company added five new customers in its advanced computing segment, highlighting continued expansion beyond hyperscalers as a driver of more consistent and profitable growth.

On the same day, Needham raised its price target on Penguin Solutions, Inc. (NASDAQ:PENG) to $27 from $25 and maintained a Buy rating.

On April 1, 2026, Penguin Solutions, Inc. (NASDAQ:PENG) reported Q2 adjusted EPS of 52c, above the 42c consensus estimate, with revenue of $343M versus $339M consensus. CEO Kash Shaikh pointed to strong demand from enterprises, governments, and cloud providers building AI infrastructure, noting the company added five AI/HPC customers during the quarter and continues to see momentum in its pipeline, supported by growing demand for memory-driven AI workloads.

Penguin Solutions, Inc. (NASDAQ:PENG) provides enterprise solutions across advanced computing, memory, and LED technologies.

While we acknowledge the potential of PENG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey on Google News.