$PEN · Penumbra Inc
Penumbra filed its Q3 FY2026 10-Q, reporting revenue of $410.1M (+15.6% YoY) with thrombectomy products leading at $279.2M (+18.1%). Net income declined to $42.3M from $45.9M a year ago as the effective tax rate more than doubled to 24.9%. The filing reiterates the pending acquisition by Boston Scientific at $374 per share (~$14.5B enterprise value), with closing expected in early 2027 subject to regulatory approvals.
- Revenue grew 15.6% YoY to $410.1M in Q3 FY2026, driven by thrombectomy product sales up 18.1% to $279.2M.
- Net income fell 7.8% YoY to $42.3M as the effective tax rate jumped to 24.9% from 12.4% a year ago.
- Gross margin improved to 68.3% from 67.8%, while SG&A surged 20.9% to $204.2M, compressing operating margin to 12.4%.
- Nine-month net income dropped 15.9% to $109.7M despite 15.4% revenue growth, with operating income flat at $130.0M.
- The pending Boston Scientific acquisition values PEN at $374/share (~$14.5B enterprise value), with closing expected in early 2027.
Markets closed — no regular-session reaction yet; extended-hours move not captured here. The filing confirms the $374/share merger consideration, which should anchor PEN shares near that level barring regulatory risk.
The 10-Q confirms both accelerating thrombectomy growth and margin pressure from SG&A expansion, but the $14.5B Boston Scientific acquisition at $374/share dominates the investment thesis.
Penumbra's 15.6% revenue growth outpaces the broader medtech sector, but the pending $14.5B acquisition by Boston Scientific overshadows standalone fundamentals. The thrombectomy market remains a high-growth M&A target within interventional neurology and vascular.
The Merger Agreement includes a $525M termination fee payable by Penumbra and a $900M reverse termination fee payable by Boston Scientific under specified circumstances. Regulatory approvals remain outstanding, and failure to close could expose PEN to significant downside from the current merger-implied valuation.