Penumbra's Q2 Earnings Beat and Raised FY25 Guidance Raise Price Target to $310 at Truist

Truist raised Penumbra's price target to $310 from $300 and maintained a Buy rating after the company's Q2 earnings beat and FY25 revenue guidance raise. The analyst expects strong growth in Penumbra's core stroke business and a growing presence in the neurovascular market.

Penumbra Inc. (NYSE: PEN) reported its fiscal 2025 Q2 earnings on July 29, 2025, with better-than-expected revenue and a notable improvement in earnings per share (EPS). The medical device company announced that its revenue increased by 13.4% year-over-year (YoY) to $339.5 million, driven by strong performance across its thrombectomy and embolization segments [1]. The company's non-GAAP EPS of $1.17 per share was 4.7% above analysts' consensus estimates, reversing a loss of $1.55 per share from the previous year. Penumbra also reported net income of $45.27 million, a significant improvement from the net loss of $60.20 million in 2024 Q2.

Following the earnings report, Truist Financial raised Penumbra's price target to $310 from $300, while maintaining a "Buy" rating. The analyst expects strong growth in Penumbra's core stroke business and a growing presence in the neurovascular market. Truist's revised price target reflects the company's robust earnings performance and the positive outlook for its revenue guidance. Penumbra raised its full-year revenue guidance to a range of $1.355 billion to $1.370 billion, anticipating 13% to 15% YoY growth. The company also maintains its guidance for U.S. thrombectomy growth at 20% to 21% compared to 2024 levels [1].

Adam Elsesser, Penumbra's CEO, highlighted the strong Q2 performance, noting the company's 13.4% YoY revenue growth and the successful adoption of innovative products, particularly in the U.S. thrombectomy business. Elsesser expressed optimism regarding the company's trajectory, stating that Penumbra is on track to achieve a gross margin profile of over 70% by the end of 2026. The CEO emphasized the company's commitment to advancing technology and improving patient outcomes across underpenetrated markets [1].

In addition to the earnings report, Penumbra announced the retirement of Don Kassing from its Board of Directors after 17 years of service. The company also introduced the Ruby XL System, designed for vascular embolization, following FDA clearance in June 2025. Lastly, Penumbra authorized a share repurchase of up to $200 million, reflecting confidence in its business and commitment to returning value to shareholders [1].

References:
[1] https://www.ainvest.com/news/penumbra-2025-q2-earnings-strong-performance-net-income-swings-profit-2507/