PEN Stock Up Following Q4 Earnings & Revenue Beat, Margins Rise

Penumbra, Inc. PEN reported fourth-quarter 2025  adjusted earnings per share (EPS) of $1.18 compared with 85 cents in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate by 5.36%.

GAAP earnings were $1.20 per share compared with 86 cents in the prior-year period.

For the full year, adjusted EPS came in at $3.84, up 82.9% year over year.

PEN’s Revenues

Penumbra registered revenues of $385.4 million in the reported quarter, up 22.1% year over year on a reported basis and 20.9% at constant exchange rate or CER. The figure topped the Zacks Consensus Estimate by 6.74%.

For the full year, revenues were $1.40 billion, reflecting a 17.5% rise from the year-ago period (16.9% at CER).

Since the Feb. 25 announcement, PEN shares have risen 1.7%, closing at $344.39 on Friday. 

Penumbra’s Q4 Results in Detail

The company reports under two geographical segments — the United States and International.

PEN recorded revenues of $299.1 million (77.6% total revenues) in the United States, up 20.6% year over year on a reported basis.

Revenues in the International segment increased 27.7% on a reported basis (up 20.9% in CER) to $86.3 million (22.4% of total revenues).

Penumbra, Inc. Price, Consensus and EPS Surprise

Penumbra, Inc. price-consensus-eps-surprise-chart | Penumbra, Inc. Quote

The company currently reports its product revenues under two categories — Thrombectomy, and Embolization and Access.

The company registered revenues of $254.7 million from sales of Thrombectomy products, up 15.7% on a reported basis and 14.7% at CER.

Sales of Embolization and Access products totaled $130.7 million, up 22.1% on a reported basis and 20.9% at CER.

PEN’s Q4 Margin Performance

In the reported quarter, Penumbra’s gross profit improved 24.4% year over year to $262.1 million. The gross margin expanded 123 basis points (bps) to 68% despite a 17.6% rise in the cost of revenues.

Selling, general and administrative expenses rose 22.4% to $181.1 million. Research and development expenses totaled $21.8 million, up 8.9% year over year. Adjusted operating profit came in at $59.2 million compared with $42.8 million in the comparable 2024 period. The adjusted operating margin expanded 181 bps year over year to 13.4%.

PEN’s Financial Update

Penumbra exited the fourth quarter of 2025 with cash and marketable investments of $544.8 million compared with $340.1 million at the end of 2024.  

Penumbra Halts 2026 Guidance

In January 2026, Penumbra announced a definitive agreement to be acquired by Boston Scientific in a cash and stock transaction, valuing the company at $374 per share or approximately $14.5 billion in enterprise value. The transaction is expected to be completed in 2026, subject to PEN stockholders’ approval and the satisfaction of other customary closing conditions. In light of this proposed acquisition, Penumbra stopped providing financial guidance for full-year 2026.

Our Take on PEN Stock

Penumbra exited the fourth quarter of 2025 with better-than-expected earnings and revenues. Sales growth of global thrombectomy products, and global embolization and access products were both driven by the U.S. performance. The expansion of both margins is also highly encouraging.

During the quarter, the company announced results from the landmark STORM-PE randomized controlled trial, which found that the use of mechanical thrombectomy, specifically computer-assisted vacuum thrombectomy, with anticoagulation achieved a superior reduction in right heart strain compared to anticoagulation therapy alone in patients with acute intermediate-high risk pulmonary embolism.  Findings also showed significantly greater improvements in thrombus burden reduction, heart rate, oxygen requirement and functional outcomes.

PEN’s Zacks Rank and Key Picks

Currently, Penumbra carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Cardinal Health CAH and Align Technology ALGN.

Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 13.24%.

Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter fiscal 2026 adjusted EPS of $2.63, exceeding the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion topped the Zacks Consensus Estimate by 0.9%.

CAH has a long-term earnings growth rate of 15% compared with the industry’s 9.6% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 9.3%.

Align Technology, carrying a Zacks Rank #2 at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.

ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.16%.

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This article originally published on Zacks Investment Research (zacks.com).

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