Key Highlights

● Pulmonx shares moved up about 27.27% on October 28, 2026.

● Revenue returned to growth and losses narrowed in the latest results.

● The move stood apart from the broader market's modest session gain.

● The stock closed at $2.52 on October 28, 2026.

Pulmonx (NASDAQ:LUNG) shares jumped on Wednesday, October 28, 2026, after the medical device company reported third-quarter results showing a return to year-over-year revenue growth, a sharply narrower loss and reduced operating costs. The stock closed at $2.52, up 27.27%, one of the larger gains among small-cap healthcare names in a session where the broader market edged only slightly higher.

Company Context

The company released its results after the close on October 27, 2026, and held a conference call the same afternoon. Revenue for the quarter came to $22.8 million, up 6.2% from a year earlier, or 6.5% on a constant currency basis. Chief Executive Glen French said the company was very pleased to have returned to year-over-year revenue growth in the quarter. US revenue rose 6.8% to $14.9 million, which, according to a summary of the earnings call, management attributed to improved commercial execution, substantially filled sales territories and the addition of eight new treating centers. International revenue increased 5.2% to $7.9 million, and excluding China, where the company is restarting sales after renewing its registration certificate, international revenue rose 8.5%.

Session Backdrop

Profitability improved considerably. Gross margin edged up to 76% from 75%, while operating expenses fell 18% to $24.9 million. The net loss narrowed to $8.4 million, or $0.19 per share, from $14.0 million, or $0.34 per share, a year earlier, and the adjusted EBITDA loss shrank 57% to $3.5 million. The company ended September with $52.7 million in cash and cash equivalents. Pulmonx reiterated its full-year 2026 revenue guidance of $90 million to $92 million and updated other parts of its outlook, now expecting gross margin of about 77%, total operating expenses of $108 million to $109 million, and a decline in cash, equivalents and marketable securities of about $22 million for the year, assuming no further drawdowns on its credit facility.

The combination of renewed growth and a much leaner cost base appears to have reassured investors who had worried about the company's cash burn. With the share price at low levels heading into the report, evidence that the business is stabilising and that losses are narrowing quickly gave the market reason to reprice the stock, and the low starting price amplified the percentage move.

Pulmonx, based in Redwood City, California, develops minimally invasive treatments for patients with severe emphysema, a form of chronic obstructive pulmonary disease. Its main product is the Zephyr Endobronchial Valve, a small device placed in the airways during a bronchoscopic procedure to block off diseased areas of the lung, allowing healthier portions to function more effectively. The company sells to hospitals and pulmonologists in the United States and internationally, and its growth depends on expanding the number of treating centers and increasing patient referrals into its procedure.

The broader backdrop was steady. The S&P 500 rose 0.3% to a record close of 7,743.98, and the Russell 2000 gained 0.4%. The Federal Reserve held its benchmark rate at 3.75% to 4.00%, and the 10-year Treasury yield hovered near 5%. Healthcare was among the most active sectors of the session, with several device and biotech companies moving sharply on results, and Pulmonx was part of that wave of stock-specific reactions.

What This Move Means for Pulmonx

Looking ahead, investors will focus on the company's quarterly report on Form 10-Q for additional detail, and on whether the return to growth can be sustained in the fourth quarter as Pulmonx works toward the reiterated full-year revenue range. Progress on restarting sales in China, the pace of new treating center openings, and continued discipline on spending will be important signals of whether the company can keep reducing its cash burn.