Net income attributable to Penguin Solutions surged to $37.45 million for the three months ended February 27, 2026, a 364.5% increase from $8.08 million in the prior year period. Diluted Earnings Per Share (EPS) increased to $0.58 for the second quarter of 2026, up from $0.09 in the same period last year. Total net sales decreased by 6.2% to $343.00 million in the second quarter of 2026, compared to $365.52 million in the prior year. The Integrated Memory segment saw strong growth, with net sales increasing by 63.1% to $171.63 million in Q2 2026, driven by improved market demand and higher pricing for Flash and DRAM products. Advanced Computing net sales declined by 42.2% to $115.72 million in Q2 2026, primarily due to the ongoing wind down of the Penguin Edge business and non-recurring hyperscale hardware sales from 2025. Optimized LED net sales decreased by 7.4% to $55.66 million in Q2 2026, reflecting a broad-based decline in demand. Gross margin decreased to 27.3% in Q2 2026 from 28.6% in Q2 2025, impacted by the Penguin Edge wind down, sales mix shift, and a $5.8 million inventory write-off due to stolen goods in transit. Operating income increased by 39.0% to $25.69 million in Q2 2026, compared to $18.49 million in Q2 2025. A net gain of $27.04 million from the disposition of equity investments significantly boosted non-operating income, partially offset by a $10.0 million impairment charge on another non-marketable equity investment. Restructuring charges totaled $5.8 million in the first six months of 2026, up from $1.0 million in the prior year, related to workforce reductions and project eliminations. The company repaid the remaining $20.0 million principal balance of its 2026 Convertible Senior Notes at maturity on February 15, 2026. Kash Shaikh was appointed President and Chief Executive Officer, effective February 2, 2026, succeeding Mark Adams, who transitioned to an independent contractor role for nine months. The Board of Directors approved an additional $75.0 million stock repurchase authorization on October 6, 2025, with $64.5 million remaining available as of February 27, 2026.