TransMedics earnings beat expectations, guidance remains solid, stock price soars

2026-02-25 09:13:44

Investing.com – TransMedics Group Inc. (NASDAQ:TMDX) announced its fourth-quarter results exceeded analyst expectations, with adjusted earnings per share of $2.62, significantly surpassing the market consensus of $0.39. Revenue reached $160.8 million, beating the analyst estimate of $155.598 million, a 32% increase from $121.6 million in the same period last year.

This medical technology company, focused on organ transplant treatments, provided full-year 2026 revenue guidance of $727 million to $757 million, representing a growth rate of 20% to 25%. The midpoint of $742 million is slightly above the analyst consensus of $725 million. The company completed 5,139 U.S. OCS cases in 2025, a 38% increase from 3,735 cases in 2024.

In after-hours trading on Tuesday, the stock price rose 6.7% following the announcement.

Waleed Hassanein, MD, President and CEO, stated: “We are very pleased with our performance in the fourth quarter and for the full year 2025. These results reflect strong execution, continued expansion of our OCS NOP program, and prudent investments to support long-term sustainable growth.”

Net income for the fourth quarter was $105.4 million, accounting for 66% of revenue, compared to $6.9 million in the same period last year. This includes $83.8 million in net tax benefits, primarily due to a one-time gain of $103.3 million from the release of valuation allowances related to deferred tax assets.

Full-year 2025 revenue totaled $605.5 million, up 37% from $441.5 million in 2024. The growth was mainly driven by increased use of organ care systems across all three organs through the national OCS program and additional revenue from TransMedics’ logistics services.

The gross profit margin for the fourth quarter was 58%, compared to 59% in the same period last year. The decline was due to increased clinical service costs supporting NOP expansion and rising freight costs. As of December 31, 2025, the company owned 22 aircraft.

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