TransMedics Raises 2026 Revenue Outlook to $764–774 Million as Third-Quarter Growth Hits 41%

Key Facts

TransMedics raised its 2026 revenue outlook to a range of $764 million to $774 million, including the contribution from PAD Aviation, equivalent to annual growth of 26% to 28%. In its third-quarter results, the company said its outlook excluding PAD Aviation was now $750 million to $760 million, compared with the previous range of $737 million to $757 million. The revision follows quarterly revenue of $203 million, up 41% year over year, while organic growth reached 35%. According to the company’s statement, sales growth primarily reflected higher liver and heart procedure volumes under the national OCS program, alongside logistics services revenue and PAD Aviation’s contribution. The company’s shares closed at $68.98 on November 5, according to EL7 data.

Third-quarter revenue comprised $113.4 million from products, up 29% from the year-earlier period, and $89.6 million from services, up 60%. Organic service revenue growth was 43%, indicating continued business expansion even with PAD Aviation’s contribution included in the total. The company attributed the increase to higher liver and heart volumes through its national program and additional logistics services revenue. PAD Aviation also contributed following the strategic investment in it on July 1, 2026. This mix places service and procedure growth among the factors supporting the higher annual outlook.

Revenue acceleration coincided with net income falling to $17.1 million in the third quarter from $24.3 million a year earlier. Diluted earnings per share fell to $0.46 from $0.66 in the year-earlier period. Operating margin declined to 13.9% from 16.2%, a year-over-year decrease of 230 basis points. Gross margin was 58.5%, compared with 58.8% a year earlier. The company said a higher share of service revenue pressured gross margin, while lower waste provisions, inventory adjustments and improved logistics efficiency partly offset the effect.

Operating expenses rose to $90.5 million in the third quarter from $61.3 million in the same period a year earlier. The company linked the increase to planned investments in kidney programs, next-generation OCS systems and the ENHANCE program, as well as hiring and infrastructure spending. These expenses help explain the quarterly decline in profitability despite revenue growth, according to the figures reported by the company. Comparing results with expectations, Investing.com reported that quarterly revenue of $203 million exceeded the consensus estimate it cited of $177.54 million. It also reported that the new annual revenue range is above its analyst consensus estimate of $741.80 million.

On the clinical front, TransMedics said the U.S. Food and Drug Administration granted investigational device exemptions in October for the ENHANCE Heart Part B and DENOVO Lung trials. The design of both trials includes the use of the CHOPS system for controlled hypothermic organ preservation in each comparison arm. The company introduced CHOPS in April as an active cooling device intended to facilitate enrollment in the trials’ comparison arms. It also announced completion of patient enrollment in Part A of the ENHANCE Heart trial in September. In October, it then received protocol approval allowing an additional 90 patients to be enrolled under the continued access program.

The company outlined several paths for the next phase, including heart and lung trials and expansion of its European services. It said it plans to launch the OCS NOP program in Italy, the Netherlands and Belgium, after winning its first European tender for organ transplant logistics services in Italy in October. It also said the OCS Kidney program remains on track to begin its first-in-human clinical experience in the second half of 2027. The chief executive said the company is entering 2027 with strong momentum and growth catalysts including ENHANCE Heart Part B and DENOVO Lung, as well as planned European launches. The company did not confirm an earlier specific date in 2027 for the start of the two trials.