What Happened?

Shares of medical device company Penumbra (NYSE: PEN) jumped 17.2% in the morning session after it reported third-quarter 2025 financial results that surpassed Wall Street's expectations for both revenue and profit. The company's revenue grew 17.8% year on year to $354.7 million, comfortably beating analysts' consensus estimate of $340.4 million. Its profitability also showed significant improvement, with non-GAAP earnings per share (EPS) of $0.97, which was 5.3% ahead of expectations. Penumbra demonstrated increased efficiency as its operating margin expanded to 13.8%, a notable increase from 11.7% in the same quarter of the previous year. This strong all-around performance, which showcased healthy demand and enhanced profitability, prompted a positive investor reaction.

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What Is The Market Telling Us

Penumbra’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for Penumbra and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 9 days ago when the stock dropped 5.5% on the news that the company announced results from its landmark STORM-PE randomized controlled trial. The study found that using Penumbra's computer-assisted vacuum thrombectomy (CAVT) system with anticoagulation was superior to using anticoagulation alone for treating patients with acute intermediate high-risk pulmonary embolism (PE), a type of blood clot in the lungs. Specifically, the trial showed a better reduction in right heart strain for patients treated with Penumbra's device. The results were called "resoundingly positive" and demonstrated a more than 50% improvement in treatment effect within two days, without an increase in major adverse events.

Penumbra is up 11.8% since the beginning of the year, but at $268.42 per share, it is still trading 11.6% below its 52-week high of $303.76 from February 2025. Investors who bought $1,000 worth of Penumbra’s shares 5 years ago would now be looking at an investment worth $1,068.

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