Pulmonx (LUNG) Stock Forecast & Price Target

Pulmonx demonstrated continued strong performance in the third quarter of 2025, reporting revenue of $21.5 million, which represents a 5% year-over-year increase primarily driven by the adoption of the Zephyr Valve. The company maintained a healthy gross margin of 75%, with an improvement in gross profit to $16.1 million compared to the previous year, despite a slight net loss narrowing to $14.0 million. Moreover, Pulmonx's strategic focus on disciplined investment in revenue-generating activities, coupled with positive momentum from international expansion and advancements in clinical initiatives, supports a favorable outlook for future growth.

Pulmonx Corp's Q3 revenue of approximately $21.5 million represents a sequential decline from Q2's $23.9 million, highlighting a slower growth trajectory that prompted a downward revision of the company's annual guidance to $90 million–$92 million. Additionally, the company's gross margins have been negatively affected, decreasing from 72% in Q2, which further exacerbates concerns regarding financial stability and execution risk in its product models. The recent management transition, including the return of Glen French as CEO, adds another layer of uncertainty to the company’s operational effectiveness moving forward.