Pulmonx (LUNG) Stock Forecast & Price Target

Pulmonx Corp demonstrated a positive trajectory in its financial performance, reporting third quarter 2025 revenue of $21.5 million, representing a 5% year-over-year increase, largely driven by the growing adoption of its Zephyr Valve for severe emphysema. The company maintained a strong gross margin of 75% while slightly narrowing its net loss to $14.0 million, indicating a disciplined approach to investment and operational efficiency. Furthermore, with international sales rising 15% year-over-year and an emphasis on advancing its clinical initiatives and AI-driven tools, Pulmonx is well-positioned for sustained revenue growth and expansion in the medical technology sector.

Pulmonx Corp's preliminary Q3 revenue of approximately $21.5 million represents a sequential decline from Q2's $23.9 million, indicating a slowdown in sales that has led to a downward revision of the company's annual revenue guidance to $90 million–$92 million. The company has also faced challenges related to product mix and conversion timing, which have negatively impacted top-line growth and gross margins, which had previously been at 72% in Q2. Additionally, the recent management transition, including the return of Glen French as CEO, may introduce further execution risk amidst these financial pressures.