TransMedics Raises 2026 Revenue Outlook After Record Quarter

The Tip Desk · November 7, 2026 · 3 min read

Third-quarter revenue reached $203.0 million, up 41%, and the company lifted full-year guidance to $764 million to $774 million including about $14 million from PAD Aviation.

TransMedics Group (TMDX), a medical technology company focused on organ transplant therapy, reported third-quarter revenue of $203.0 million, up 41% from a year earlier, and raised its full-year 2026 revenue outlook.

The year-over-year growth rate accelerated from 21% in both the first and second quarters of 2026. Organic revenue, excluding PAD Aviation, was $193.6 million, up 34.6%. PAD Aviation contributed $9.4 million of charter services after the company’s July 1 strategic investment.

President and Chief Executive Officer Waleed Hassanein said the quarter was the strongest in the company’s history, with record revenue and record case volume, delivered despite typical third-quarter seasonality and before any contribution from ENHANCE Part B or DENOVO.

Product revenue was $113.4 million, up 29%, after 16% growth in the second quarter. Service revenue was $89.6 million, up 60%, with organic service revenue up 43%. The company said the increase in total revenue was due primarily to increasing Liver and Heart volume through the National OCS Program, additional revenue from TransMedics logistics services, and the contribution of PAD Aviation.

Gross margin was 58.5%, compared with 58.8% in the year-ago period. The company said the year-over-year decrease primarily reflected a higher mix of service revenue, partly offset by reduced scrap, lower inventory adjustments and logistics efficiencies, productivity gains from reduced supplemental lift utilization, lower ground transportation cost per mission, and improved leverage of fixed operating costs as volume increased. Sequentially, gross margin compressed from 60% in the second quarter.

Operating expenses were $90.5 million, compared with $61.3 million a year earlier. The company said the increase was driven by planned investment in OCS Kidney, Next-Generation OCS, and ENHANCE clinical programs, increased headcount to support development and expansion, and infrastructure investments including the U.S. headquarters and PAD Aviation. Third-quarter stock compensation was $12.1 million.

Income from operations was $28.1 million, or a 13.9% operating margin, versus a 12.5% margin in the second quarter. Adjusted income from operations was $28.9 million, or a 14.2% adjusted operating margin. Net income was $17.1 million, or $0.46 a share, compared with $24.3 million, or $0.66 a share, a year earlier. Adjusted net income was $18.9 million, or $0.51 a share. Cash was $493.0 million as of September 30, 2026.

TransMedics raised full-year 2026 revenue guidance to $764 million to $774 million, inclusive of approximately $14 million from PAD Aviation, or $750 million to $760 million excluding PAD Aviation, from a prior $737 million to $757 million range excluding PAD Aviation. The company said the updated range implies 26% to 28% annual growth compared with full-year 2025 revenue.

In October, the company received FDA IDE approvals for ENHANCE Heart Part B and DENOVO Lung, including use of CHOPS as a control arm in both trials. It completed enrollment in Part A of the Next-Generation OCS ENHANCE Heart trial in September and received FDA approval of a continued access protocol allowing enrollment of an additional 90 patients. It was awarded its first European transplant logistics tender in Italy, commencing European transplant operations using PAD Aviation.

Hassanein said the company plans to launch OCS NOP in Italy, the Netherlands and Belgium, and that OCS Kidney remains on track for first-in-human clinical experience in the second half of 2027.