Pulmonx Q1 2026: Revenue Miss and Falling Sales Drag Down Sentiment
Pulmonx Corp (NASDAQ:LUNG) reported its first-quarter 2026 financial results after the bell on April 29, delivering numbers that largely fell short of Wall Street expectations. The stock dipped roughly 2.5% in after-market trading, reflecting investor disappointment as the company posted a year-over-year decline in revenue and continued operational losses.
Revenue and EPS vs. Estimates
The results missed consensus analyst expectations on both the top and bottom lines:
- Revenue: The company reported worldwide revenue of $20.6 million, a 9% decline compared to $22.5 million in the same quarter last year. This came in below the analyst consensus estimate of approximately $20.8 million.
- Adjusted EPS: Pulmonx reported a non-GAAP net loss of $0.33 per share. While this was slightly better than the analyst estimate of -$0.33 per share, it represents a narrowing from a loss of $0.36 per share a year ago.
Key Metrics from the Press Release
Beyond the headline numbers, the report highlighted a mixed performance across different regions and revealed some structural challenges.
- U.S. Revenue Decline: U.S. revenue fell 7% year-over-year to $13.3 million. The company is in the early stages of executing a “refreshed” commercial strategy to turn this around.
- International Headwinds: International revenue dropped 12% to $7.3 million. However, the decline was entirely driven by a lack of sales into China while the company waits to renew its registration certificate. Excluding China, international revenue actually grew 22% (9% on a constant currency basis).
- Gross Margin Improvement: Gross margin expanded significantly to 78%, up from 73% in the year-ago quarter, signaling improved manufacturing efficiency or a product mix shift.
- Cost Control: Total operating expenses decreased by 6% to $29.0 million, while the net loss improved slightly to $13.7 million from $14.4 million.
- Cash Position: The company held $61.6 million in cash and equivalents as of March 31.
Outlook versus Analyst Estimates
Management reiterated its full-year 2026 guidance, providing no new surprises regarding the trajectory of the business.
- Full-Year 2026 Revenue: Pulmonx continues to expect revenue in the range of $90 million to $92 million. This aligns closely with the analyst consensus estimate of $92.7 million, suggesting management sees modest recovery in the second half of the year.
- Gross Margin: Expected to be approximately 75% for the full year.
- Operating Loss: Total operating expenses are expected to be between $113 million and $115 million, including about $19 million in stock-based compensation.
- Cash Burn: The company expects to burn approximately $23 million in cash for the full year.
Market Reaction
The after-market decline of roughly 2.5% suggests that while the earnings-per-share was in line with expectations, the revenue miss and the ongoing year-over-year sales contraction in the U.S. weighed on sentiment. Investors are likely waiting for clearer evidence that the company's new U.S. commercial strategy is gaining momentum before pricing in a more optimistic outlook. The lack of an upward revision to the full-year guidance also did little to inspire confidence.
Analyst Views
The primary narrative from the call centers on execution. CEO Glen French noted that the company is "encouraged by early signs of progress" from the refocused sales organization. For the stock to regain its footing, the focus will be on sequential revenue growth in the coming quarters, particularly as the U.S. sales team ramps up. The international story remains strong—excluding the China headwind—but that positive is not yet enough to offset the domestic sluggishness.
Looking Ahead
The key battleground for Pulmonx remains the ability to drive adoption of the Zephyr Valve in the U.S. market. The next quarter will be a critical test to see if the initial "early signs" of progress translate into tangible revenue acceleration.
For more detailed historical earnings data and future projections and estimates, view the full financial breakdown on the earnings page here and the analyst forecasts here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult with a qualified financial professional before making any investment decisions.