TransMedics Raises 2026 Revenue Guidance to $774 Million as Organic Growth Reaches 34.6%
Key Facts
TransMedics raised its fiscal 2026 revenue guidance to a range of $764 million to $774 million after reporting third-quarter results it described as the strongest in its history for revenue and case volume. The new guidance includes about $14 million expected from PAD Aviation, putting the targeted revenue range excluding the company’s contribution at about $750 million to $760 million. The company said third-quarter organic revenue was $193.620 million, up 34.6%, excluding $9.385 million in revenue from PAD Aviation services. The chief executive said the company is entering 2027 “with strong momentum and a solid set of growth drivers.” The results release did not include a comparison with analyst expectations.
Product revenue was $113.4 million, up 29%, while service revenue rose to $89.6 million, up 60%, including organic service revenue growth of 43%. The company attributed the revenue increase mainly to higher liver and heart procedure volumes under the national OCS program. It added that its logistics services contributed to revenue growth, along with PAD Aviation’s contribution following the investment in it on July 1, 2026. Separating organic revenue from PAD Aviation’s contribution highlights the growth recorded by existing operations during the quarter. The different growth rates for products and services also reflect the expanding contribution of services to the company’s revenue mix.
On profitability, net income was $17.1 million, or $0.46 per diluted share, compared with $24.3 million and $0.66 per share in the third quarter of 2025. Adjusted net income was $18.9 million, or $0.51 per diluted share. Operating income rose to $28.141 million from $23.300 million a year earlier, but the operating margin fell to 13.9% from 16.2%. The company said gross margin was 58.5%, compared with 58.8% in the year-earlier period. It attributed the decline mainly to a higher share of revenue from services, partly offset by improved logistics efficiency.
Operating expenses totaled $90.5 million in the third quarter, compared with $61.3 million in the same period a year earlier. The company said the increase was tied to planned investments in the OCS Kidney program, the next-generation OCS system and the ENHANCE clinical trial programs. The investments also included expansion and infrastructure, according to the results release. In developments in the ENHANCE Heart program, the company completed enrollment in Part A of the trial in September. It then received U.S. Food and Drug Administration approval in October for a continued-access protocol allowing the enrollment of an additional 90 patients.
In Europe, TransMedics said it won its first tender for organ transplant logistics services in Italy and began European operations using PAD Aviation in October. The company plans to launch its OCS NOP program in Italy, the Netherlands and Belgium. On kidney development, it said OCS Kidney remains on track to begin its first human clinical trial in the second half of 2027. Management linked these plans to the set of growth drivers it expects to take into next year. In the market, EL7 data show TMDX shares closed at $68.98 on November 5, 2026.