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Why Is TransMedics (TMDX) Up 10.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for TransMedics (TMDX - Free Report) . Shares have added about 10.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is TransMedics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
TransMedics Q2 Earnings Miss Estimates, Revenues Up Y/Y
TransMedics delivered earnings per share of 44 cents in the second quarter of 2026, down 52.2% year over year. The figure missed the Zacks Consensus Estimate by 12%.
TMDX Revenue Mix Shows Service Strength
Revenues rose 20.7% year over year to $189.9 million and surpassed the consensus estimate by 3.1%.
Net product revenues totaled $111.2 million, up 15.7% from the prior-year quarter. The improvement was led by higher organ utilization and increased OCS adoption, particularly across the liver and heart businesses.
Service revenues represented roughly 41% of total revenues and increased 28.6% to $78.8 million. Clinical service revenues rose 19.1% to around $36 million. The stronger service contribution reflected broader logistics adoption, pricing adjustments and higher aviation-fleet utilization.
Transplant Logistics’ services revenues for second-quarter 2026 were approximately $41 million, up 39% year over year. TransMedics operated 22 owned aircraft during the quarter and covered 86% of National OCS Program missions requiring air transportation, compared with 82% coverage in the first quarter of 2026. This growth resulted from the broader adoption of TransMedics’ logistics services, increased aviation-fleet utilization and improved operating efficiency.
TMDX’s Margin Trend
In the quarter under review, TransMedics’ gross profit increased 17.2% year over year to $113.2 million. The gross margin contracted 100 basis points (bps) to 60%.
Selling, general and administrative expenses rose 31.2% year over year to $57.8 million. Research, development and clinical trials expenses surged 98.5% year over year to $31.6 million. Total operating expenses of $89.5 million increased 49.1% year over year.
Adjusted operating profit totaled $25.8 million, reflecting a decline of 29.5% from the prior-year quarter. The adjusted operating margin in the second quarter contracted 960 bps to 13.6%.
TransMedics’ Financial Position
TransMedics exited second-quarter 2026 with cash of $472.7 million compared with $461.7 million at the end of the first quarter. Total long-term debt at the end of second-quarter 2026 was $39.7 million compared with $44.5 million at the end of the first quarter.
Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $41.8 million compared with $88.8 million a year ago.
TransMedics Raises Its Revenue Outlook
TransMedics raised the lower end of its 2026 revenue guidance. Revenues are now expected to be between $737 million and $757 million, representing growth of approximately 22% to 25% from the 2025 level. The previous projection called for revenues of $727 million to $757 million.
The outlook excludes contributions from PAD Aviation and assumes no incremental revenues from the ENHANCE Part B and DENOVO clinical programs. Adjusted operating margin, excluding PAD Aviation, is expected to be between 12.5% and 14%, below the company’s prior expectation of approximately 16% because of accelerated OCS Kidney investments.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -31.5% due to these changes.
VGM Scores
At this time, TransMedics has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise TransMedics has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
TransMedics is part of the Zacks Medical - Instruments industry. Over the past month, IQVIA Holdings (IQV - Free Report) , a stock from the same industry, has gained 11.8%. The company reported its results for the quarter ended June 2026 more than a month ago.
IQVIA reported revenues of $4.37 billion in the last reported quarter, representing a year-over-year change of +8.7%. EPS of $3.15 for the same period compares with $2.81 a year ago.
IQVIA is expected to post earnings of $3.25 per share for the current quarter, representing a year-over-year change of +8.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
IQVIA has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
View the Zacks #1 Rank List
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Why Is TransMedics (TMDX) Up 10.2% Since Last Earnings Report?
A month has gone by since the last earnings report for TransMedics (TMDX - Free Report) . Shares have added about 10.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is TransMedics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
TransMedics Q2 Earnings Miss Estimates, Revenues Up Y/Y
TransMedics delivered earnings per share of 44 cents in the second quarter of 2026, down 52.2% year over year. The figure missed the Zacks Consensus Estimate by 12%.
TMDX Revenue Mix Shows Service Strength
Revenues rose 20.7% year over year to $189.9 million and surpassed the consensus estimate by 3.1%.
Net product revenues totaled $111.2 million, up 15.7% from the prior-year quarter. The improvement was led by higher organ utilization and increased OCS adoption, particularly across the liver and heart businesses.
Service revenues represented roughly 41% of total revenues and increased 28.6% to $78.8 million. Clinical service revenues rose 19.1% to around $36 million. The stronger service contribution reflected broader logistics adoption, pricing adjustments and higher aviation-fleet utilization.
Transplant Logistics’ services revenues for second-quarter 2026 were approximately $41 million, up 39% year over year. TransMedics operated 22 owned aircraft during the quarter and covered 86% of National OCS Program missions requiring air transportation, compared with 82% coverage in the first quarter of 2026. This growth resulted from the broader adoption of TransMedics’ logistics services, increased aviation-fleet utilization and improved operating efficiency.
TMDX’s Margin Trend
In the quarter under review, TransMedics’ gross profit increased 17.2% year over year to $113.2 million. The gross margin contracted 100 basis points (bps) to 60%.
Selling, general and administrative expenses rose 31.2% year over year to $57.8 million. Research, development and clinical trials expenses surged 98.5% year over year to $31.6 million. Total operating expenses of $89.5 million increased 49.1% year over year.
Adjusted operating profit totaled $25.8 million, reflecting a decline of 29.5% from the prior-year quarter. The adjusted operating margin in the second quarter contracted 960 bps to 13.6%.
TransMedics’ Financial Position
TransMedics exited second-quarter 2026 with cash of $472.7 million compared with $461.7 million at the end of the first quarter. Total long-term debt at the end of second-quarter 2026 was $39.7 million compared with $44.5 million at the end of the first quarter.
Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $41.8 million compared with $88.8 million a year ago.
TransMedics Raises Its Revenue Outlook
TransMedics raised the lower end of its 2026 revenue guidance. Revenues are now expected to be between $737 million and $757 million, representing growth of approximately 22% to 25% from the 2025 level. The previous projection called for revenues of $727 million to $757 million.
The outlook excludes contributions from PAD Aviation and assumes no incremental revenues from the ENHANCE Part B and DENOVO clinical programs. Adjusted operating margin, excluding PAD Aviation, is expected to be between 12.5% and 14%, below the company’s prior expectation of approximately 16% because of accelerated OCS Kidney investments.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -31.5% due to these changes.
VGM Scores
At this time, TransMedics has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise TransMedics has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
TransMedics is part of the Zacks Medical - Instruments industry. Over the past month, IQVIA Holdings (IQV - Free Report) , a stock from the same industry, has gained 11.8%. The company reported its results for the quarter ended June 2026 more than a month ago.
IQVIA reported revenues of $4.37 billion in the last reported quarter, representing a year-over-year change of +8.7%. EPS of $3.15 for the same period compares with $2.81 a year ago.
IQVIA is expected to post earnings of $3.25 per share for the current quarter, representing a year-over-year change of +8.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
IQVIA has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.