Penumbra, Inc.
PEN · NYSE
Next quarter
Expected to report Feb 24, 2027 — estimated from last year’s reporting date.
PEN Sep 2026
- -0.94%
- —
- $1.07
- —
- $410.14M
Reported results
- $410.14M
- 68.34%
- $50.74M
- 12.37%
- $42.28M
- $1.07
Highlights
- Revenue growth: Q3 revenue rose 15.6% year over year to $410.1 million, from $354.7 million, and 5.2% sequentially from $390.0 million.
- EPS: Diluted EPS was $1.07, versus $0.88 in Q2 and $1.17 a year earlier. The supplied expectations data gives reported EPS but no consensus estimate for comparison.
- Thrombectomy: Revenue increased 18.1% to $279.2 million; U.S. VTE revenue grew 26.0% year over year.
- Other product growth: Embolization and access revenue rose 10.8% to $131.0 million, while U.S. neuro revenue increased 19.3%.
- Margins and earnings: Gross margin expanded 0.5 percentage points year over year to 68.3%; operating income was $50.7 million, up from $48.8 million, while net income declined to $42.3 million from $45.9 million.
- Higher expenses and taxes: Operating expenses increased 19.8% year over year to $229.6 million, including $7.1 million of acquisition-related costs; the effective tax rate rose to 24.9% from 12.4%.
- Pending acquisition: Penumbra will not provide full-year 2026 guidance or hold a Q3 results call while its Boston Scientific acquisition is pending; closing is expected in early 2027, subject to approvals and other conditions.
Analysis
Penumbra posted Q3 revenue of $410.1 million, up 15.6% year over year and 5.2% from Q2’s $390.0 million, with reported diluted EPS of $1.07 versus $0.88 last quarter and $1.17 a year ago. The supplied expectations information includes reported EPS but no consensus estimate, so a beat-or-miss comparison is not available. The central operating story was continued product-led growth, particularly in thrombectomy: global thrombectomy revenue rose 18.1% to $279.2 million, while embolization and access grew 10.8% to $131.0 million. U.S. VTE revenue increased 26.0% and U.S. neuro revenue 19.3% year over year.
Profitability was mixed. Gross margin improved to 68.3% from 67.8% a year ago, but operating expenses grew faster than revenue, up 19.8% to $229.6 million. Operating income edged up to $50.7 million from $48.8 million year over year, though operating margin narrowed to 12.4% from 13.8%. Net income fell to $42.3 million from $45.9 million, with the effective tax rate rising to 24.9% from 12.4%. The pending Boston Scientific acquisition also shaped the quarter: Penumbra incurred $7.1 million in related costs and, because of the deal, withheld full-year guidance and did not host a conference call.
Revenue and product mix
- Thrombectomy: Revenue grew 18.1% to $279.2 million from $236.4 million, driven primarily by U.S. volume from new products and further penetration of existing products; prices remained substantially unchanged. U.S. VTE revenue rose 26.0%.
- Embolization and access: Revenue increased 10.8% to $131.0 million from $118.3 million, mainly on higher U.S. sales volume and further penetration of existing products; pricing was substantially unchanged.
- Regional results: U.S. revenue increased 17.9% to $324.2 million, while international revenue rose 7.8% to $85.9 million. International sales accounted for 20.9% of revenue, down from 22.5% a year earlier.
- Neuro: U.S. neuro revenue grew 19.3% year over year, as reported in the release.
Margins and earnings
- Gross margin: 68.3%, up 0.5 percentage points from 67.8% a year earlier; Penumbra attributed the improvement primarily to favorable product mix across regions.
- Operating income: $50.7 million versus $48.8 million a year ago and $41.0 million in Q2. Operating margin was 12.4%, down from 13.8% year over year but above Q2’s approximately 10.5%.
- Net income and EPS: Net income was $42.3 million versus $45.9 million a year ago and $34.8 million in Q2. Diluted EPS was $1.07, compared with $1.17 and $0.88, respectively.
- Tax impact: The effective tax rate increased to 24.9% from 12.4% a year ago, primarily because of lower excess tax benefits from U.S. stock-based compensation.
Operating expenses
- Total spending: Operating expenses rose 19.8% to $229.6 million, outpacing 15.6% revenue growth.
- SG&A: Expense increased 20.9% to $204.2 million, including $7.1 million of acquisition-related professional services costs. Penumbra also cited higher personnel expenses and marketing-event costs.
- R&D: Expense rose 11.8% to $25.4 million, primarily due to increased headcount and related personnel costs.
- Nine-month context: Acquisition-related costs totaled $23.5 million for the first nine months of 2026, versus $7.1 million in Q3 alone.
Boston Scientific acquisition
- Transaction status: The pending acquisition has been approved by Penumbra’s and Boston Scientific’s boards and Penumbra’s stockholders; closing is expected in early 2027, subject to regulatory approvals and other customary conditions.
- Consideration: The agreement values Penumbra at approximately $14.5 billion in enterprise value and $374 per share, with consideration structured approximately 73% in cash and 27% in Boston Scientific shares, subject to proration.
- Reporting impact: Penumbra said it would not provide full-year 2026 guidance or host a conference call for the quarter because of the pending transaction.
Liquidity and investment
- Available resources: At September 30, Penumbra held $254.3 million in cash and cash equivalents and $419.3 million in marketable investments; working capital was $1.143 billion.
- Cash generation: Operating cash flow was $174.6 million for the first nine months of 2026, compared with $152.2 million in the prior-year period.
- Investment and capacity: Nine-month capital expenditures were $42.3 million, including investment in the Costa Rica manufacturing facility. The company had paid $57.6 million toward the project by quarter-end, with total project cost estimated at approximately $91 million.
