Key Highlights

  • Revenue rose 15.6% to $410.1 million from $354.7 million in the third quarter of 2025.
  • Thrombectomy Revenue grew 18.1% to $279.2 million.
  • Gross Margin was 68.3%, compared with 67.8% a year ago.
  • Diluted EPS was $1.07, versus $1.17 in the prior year period.
  • Cash and marketable investments totaled $673.6 million at September 30, 2026, on a calculated basis.

Thrombectomy leads a 15.6% revenue gain

Penumbra (NYSE:PEN) describes itself as a thrombectomy company, developing devices that remove blood clots in conditions such as ischemic stroke, pulmonary embolism and acute limb ischemia. It also sells embolization and access products, and manufactures in Alameda and Roseville, California. The company filed its Quarterly Report for the period ended September 30, 2026 on October 29, 2026.

Revenue was $410.1 million, up $55.5 million from $354.7 million a year earlier. Thrombectomy revenue rose 18.1% to $279.2 million, which the company attributed mainly to higher U.S. Volume from new products and further penetration of existing ones. Embolization and access revenue rose 10.8% to $131.0 million.

Prices were described as substantially unchanged in both product groups, so the growth came from volume rather than pricing.

United States drives the mix

U.S. revenue rose 17.9% to $324.2 million, or 79.1% of the total, compared with 77.5% a year ago. International revenue grew 7.8% to $85.9 million, and its share slipped to 20.9% from 22.5%.

For the nine months ended September 30, 2026, revenue reached $1,174.9 million, up 15.4% from $1,018.3 million. Thrombectomy contributed $792.1 million, up 14.3%, while embolization and access contributed $382.9 million, up 17.8%.

Margins: gross gain, Operating Expense pressure

Gross profit was $280.3 million, and gross margin edged up to 68.3% from 67.8% on favorable product mix across regions. Research and Development expense rose 11.8% to $25.4 million.

Sales, general and administrative expense rose 20.9% to $204.2 million, or 49.8% of revenue versus 47.6%. The company cited a $12.5 million increase in personnel costs, a $7.1 million increase in acquisition-related expenses tied to the pending Boston Scientific transaction and a $6.3 million increase in Marketing event costs.

Income from operations was $50.7 million, up from $48.8 million, but Operating Margin fell to 12.4% from 13.8%.

Tax rate pulls Net Income down

Net income was $42.3 million versus $45.9 million, and diluted EPS was $1.07 versus $1.17. Income before income taxes actually rose to $56.3 million from $52.3 million.

The provision for income taxes was $14.0 million, an effective rate of 24.9%, compared with $6.5 million and 12.4% a year ago. The company said the change came mainly from lower excess tax benefits from stock-based compensation in the U.S.

For the nine months, net income was $109.7 million, or $2.77 per diluted share, against $130.3 million, or $3.32.

Balance sheet and the Boston Scientific merger

Cash and cash equivalents were $254.3 million and marketable investments were $419.3 million, with Working Capital of $1,142.8 million. Operating Cash Flow for the nine months was $174.6 million, versus $152.2 million a year earlier, and capital spending was $42.3 million, including the Costa Rica Manufacturing facility.

Under the Merger agreement signed January 14, 2026, Boston Scientific (NYSE:BSX) would acquire Penumbra at an Enterprise value of about $14.5 billion, or $374 per share in cash or stock, with consideration roughly 73% cash and 27% stock. The deal is expected to close in early 2027, subject to regulatory approvals and customary conditions.

Readers following the name will likely watch the closing timeline, further merger costs within SG&A and whether the tax rate stays elevated.