This paper demonstrates the operating characteristics of a W-band peniotron with a permanent magnet system. A practical novel large-orbit electron beam with axial velocity spread of 5.17%, transverse velocity spread of 1.28%, guiding center deviation ratio of 10.7%, and high average velocity ratio of 2 is designed to drive a sixth-harmonic magnetron-type slotted peniotron. Compared with the peniotron with an ideal electron beam, the output power of the practical peniotron decreases from 30 to 22 kW at 94 GHz, and its conversion efficiency correspondingly decreases from 40 to 30%. Based on a permanent magnet system, the main advantage of such peniotron is that it can have a much more compact size and lower cost, and its operational gap can be greatly reduced.