Penguin Solutions reported a strong start to fiscal 2025, delivering 1Q revenue of $341.1 million, up 24% year over year, and non-GAAP diluted EPS of $0.49, up 108% YoY. Non-GAAP operating income reached $41.0 million (margin 12%), supported by a diversified mix across Advanced Computing, Integrated Memory, and Optimized LED. The quarter benefited from a large hyperscaler deployment in Advanced Computing and expanding demand in Memory, with LED margins improving despite an industry-wide oversupply in LED. The company reaffirmed its full-year 2025 outlook, guiding to roughly 15% revenue growth (±5pp) and non-GAAP gross margin of about 32%, underpinned by a more software- and services-enabled AI stack and ongoing partnerships. Management highlighted a material backlog and a strategic emphasis on AI production environments, multi-tenant software capabilities, and ecosystem partnerships (notably with Dell and SK Telecom) as key growth levers. The earnings call emphasized the lumpiness of AI deployments, the transition from pilots to production, and the company’s technology-agnostic approach as differentiators in a competitive landscape.