TransMedics Reports Strong Q4 2025 Earnings with Significant Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy TMDX?
Source: seekingalpha
- Significant Revenue Growth: TransMedics achieved total revenue of $160.8 million in Q4 2025, representing approximately 32% year-over-year growth and about 12% sequential growth, demonstrating the company's strong resilience and sustained growth potential despite external challenges.
- Strong Profit Performance: The operating profit for Q4 reached $21.3 million, accounting for 13.2% of total revenue, while the full-year gross margin improved to 59.9%, reflecting successful logistics efficiencies and scale benefits that enhance future profitability.
- Market Share Expansion: OCS liver transplants captured 36% of the U.S. market share in 2025, up from 26% in 2024, indicating robust growth in the liver transplant sector and expected to further drive revenue growth in the future.
- Optimistic Outlook: Management projects total revenue for 2026 to be between $727 million and $757 million, representing a growth rate of approximately 20% to 25%, with plans to launch the ENHANCE Heart and DENOVO Lung programs to support long-term growth strategies.
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Analyst Views on TMDX
Wall Street analysts forecast TMDX stock price to rise
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 134.650
Low
115.00
Averages
147.80
High
170.00
Current: 134.650
Low
115.00
Averages
147.80
High
170.00
About TMDX
TransMedics Group, Inc. is a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart and liver failure. The Company specializes in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Its Organ Care System (OCS) is a portable organ perfusion, optimization and monitoring system that utilizes its customized technology to replicate near-physiologic conditions for donor organs outside the human body. It also developed its National OCS Program (NOP), which is a turnkey solution to provide outsourced organ procurement, OCS perfusion management and transplant logistics services, to provide transplant programs in the United States. Its logistics services include aviation transportation and other coordination activities. Its NOP provides trained organ procurement surgeons, clinical specialists and transplant coordinators that provide an end-to-end clinical solution using its OCS technology.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TransMedics Reports Strong Q4 2025 Earnings with Significant Growth
- Significant Revenue Growth: TransMedics achieved total revenue of $160.8 million in Q4 2025, representing approximately 32% year-over-year growth and about 12% sequential growth, demonstrating the company's strong resilience and sustained growth potential despite external challenges.
- Strong Profit Performance: The operating profit for Q4 reached $21.3 million, accounting for 13.2% of total revenue, while the full-year gross margin improved to 59.9%, reflecting successful logistics efficiencies and scale benefits that enhance future profitability.
- Market Share Expansion: OCS liver transplants captured 36% of the U.S. market share in 2025, up from 26% in 2024, indicating robust growth in the liver transplant sector and expected to further drive revenue growth in the future.
- Optimistic Outlook: Management projects total revenue for 2026 to be between $727 million and $757 million, representing a growth rate of approximately 20% to 25%, with plans to launch the ENHANCE Heart and DENOVO Lung programs to support long-term growth strategies.
See More
TransMedics Q4 Earnings Exceed Expectations
- Strong Quarterly Performance: TransMedics reported a Q4 GAAP EPS of $2.62, beating expectations by $2.26, which reflects the company's robust financial growth and boosts investor confidence.
- Significant Revenue Growth: The company achieved Q4 revenue of $160.8 million, a 32.2% year-over-year increase, surpassing market expectations by $5.52 million, indicating the effectiveness of its business model and strong market demand.
- Substantial Annual Net Income Increase: For the full year 2025, TransMedics generated a net income of $190.3 million, or $4.87 per diluted share, including an $82.8 million net income tax benefit, showcasing a marked improvement in profitability.
- Increase in OCS Cases: The company completed 5,139 U.S. OCS cases in 2025, a 38% increase from 3,735 cases in 2024, demonstrating strong momentum in market share and business expansion.
See More
TransMedics Group to Announce Q4 Earnings on February 24
- Earnings Announcement: TransMedics Group is set to release its Q4 earnings report on February 24 after market close, with investors keenly awaiting performance insights to gauge future growth potential.
- Earnings Expectations: The consensus EPS estimate stands at $0.37, indicating a year-over-year increase, which reflects the company's ongoing profitability and market confidence in the medical device sector.
- Revenue Forecast: Revenue is projected at $154.95 million, representing a 27.4% year-over-year growth, showcasing TransMedics' strong growth momentum in international markets, particularly driven by the Italian NOP program.
- Estimate Revisions: Over the past three months, EPS estimates have seen one upward revision with no downward adjustments, while revenue estimates have faced three downward revisions, suggesting a weakening market expectation for revenue growth that could impact investor sentiment.
See More
Earnings Reports Week for Major Companies
- Earnings Reporting Schedule: This week features earnings reports from the world's largest publicly traded companies across energy, retail, and tech sectors, with investors keenly observing performance and market reactions.
- JOBY Stock Movement: JOBY stock is experiencing volatility, and investor sentiment remains cautious ahead of upcoming earnings, particularly given the broader market context.
- Lucid Group Expectations: Lucid Group is set to report after Tuesday's close, with analysts forecasting a quarterly loss of $2.64 per share on revenue of approximately $473 million, focusing on gross margin and cash runway.
- AI Infrastructure Spending: Analysts anticipate a tech company's fourth-quarter revenue of around $65.6 billion and adjusted EPS of $1.52, with the market keenly awaiting Q1 guidance and CEO insights on AI infrastructure spending.
See More
TransMedics Grants Stock Options and RSUs to Employees
- Stock Option Grants: On February 18, 2026, TransMedics granted a total of 40,089 stock options and 26,549 restricted stock units to 14 employees as a significant inducement for their employment, highlighting the company's commitment to attracting talent.
- Executive Incentive Plan: Among the grants, Chief Commercial Officer Giovanni Cecere received 16,734 stock options and 11,082 restricted stock units, indicating a strategic focus on executive incentives aimed at enhancing long-term commitment from management.
- Exercise Price Setting: The stock options have an exercise price of $135.50 per share, based on the closing price on the grant date, reflecting the company's confidence in its market value while providing potential economic incentives for employees.
- Vesting Arrangements: The vesting of both stock options and restricted stock units is tied to the employees' continued service, ensuring long-term engagement in the company's growth, thereby enhancing team stability and cohesion.
See More
Tom Gardner Discusses AI and Investment Strategies
- Rise of AI Native Companies: Tom Gardner emphasizes that future winners will be AI native companies that fully integrate AI into their culture, enabling them to achieve higher productivity with fewer employees, thus gaining a competitive edge.
- Market Indicator Analysis: Gardner utilizes the Potential Growth Indicator and Market View Tool to guide investment decisions, with the former indicating potential market overvaluation and expected annual returns between 8.5% and 9%, while the latter forecasts closer to 10.5%, reflecting the market's complexity.
- Portfolio Strategy: Gardner stresses that investors should adopt an incremental strategy, focusing on cash inflows into the market to avoid significant losses during market volatility, particularly for those nearing retirement who need to manage their assets cautiously.
- Stock Recommendations for the Next Five Years: He recommends six stocks, including TransMedics, which is expected to triple in value over the next 6-7 years, and Aritzia, which shows strong financial management and growth potential in the U.S. market.
See More
TransMedics Reports Strong Q4 2025 Earnings with Significant Growth
- Significant Revenue Growth: TransMedics achieved total revenue of $160.8 million in Q4 2025, representing approximately 32% year-over-year growth and about 12% sequential growth, demonstrating the company's strong resilience and sustained growth potential despite external challenges.
- Strong Profit Performance: The operating profit for Q4 reached $21.3 million, accounting for 13.2% of total revenue, while the full-year gross margin improved to 59.9%, reflecting successful logistics efficiencies and scale benefits that enhance future profitability.
- Market Share Expansion: OCS liver transplants captured 36% of the U.S. market share in 2025, up from 26% in 2024, indicating robust growth in the liver transplant sector and expected to further drive revenue growth in the future.
- Optimistic Outlook: Management projects total revenue for 2026 to be between $727 million and $757 million, representing a growth rate of approximately 20% to 25%, with plans to launch the ENHANCE Heart and DENOVO Lung programs to support long-term growth strategies.
See More
TransMedics Q4 Earnings Exceed Expectations
- Strong Quarterly Performance: TransMedics reported a Q4 GAAP EPS of $2.62, beating expectations by $2.26, which reflects the company's robust financial growth and boosts investor confidence.
- Significant Revenue Growth: The company achieved Q4 revenue of $160.8 million, a 32.2% year-over-year increase, surpassing market expectations by $5.52 million, indicating the effectiveness of its business model and strong market demand.
- Substantial Annual Net Income Increase: For the full year 2025, TransMedics generated a net income of $190.3 million, or $4.87 per diluted share, including an $82.8 million net income tax benefit, showcasing a marked improvement in profitability.
- Increase in OCS Cases: The company completed 5,139 U.S. OCS cases in 2025, a 38% increase from 3,735 cases in 2024, demonstrating strong momentum in market share and business expansion.
See More
TransMedics Group to Announce Q4 Earnings on February 24
- Earnings Announcement: TransMedics Group is set to release its Q4 earnings report on February 24 after market close, with investors keenly awaiting performance insights to gauge future growth potential.
- Earnings Expectations: The consensus EPS estimate stands at $0.37, indicating a year-over-year increase, which reflects the company's ongoing profitability and market confidence in the medical device sector.
- Revenue Forecast: Revenue is projected at $154.95 million, representing a 27.4% year-over-year growth, showcasing TransMedics' strong growth momentum in international markets, particularly driven by the Italian NOP program.
- Estimate Revisions: Over the past three months, EPS estimates have seen one upward revision with no downward adjustments, while revenue estimates have faced three downward revisions, suggesting a weakening market expectation for revenue growth that could impact investor sentiment.
See More
Earnings Reports Week for Major Companies
- Earnings Reporting Schedule: This week features earnings reports from the world's largest publicly traded companies across energy, retail, and tech sectors, with investors keenly observing performance and market reactions.
- JOBY Stock Movement: JOBY stock is experiencing volatility, and investor sentiment remains cautious ahead of upcoming earnings, particularly given the broader market context.
- Lucid Group Expectations: Lucid Group is set to report after Tuesday's close, with analysts forecasting a quarterly loss of $2.64 per share on revenue of approximately $473 million, focusing on gross margin and cash runway.
- AI Infrastructure Spending: Analysts anticipate a tech company's fourth-quarter revenue of around $65.6 billion and adjusted EPS of $1.52, with the market keenly awaiting Q1 guidance and CEO insights on AI infrastructure spending.
See More
TransMedics Grants Stock Options and RSUs to Employees
- Stock Option Grants: On February 18, 2026, TransMedics granted a total of 40,089 stock options and 26,549 restricted stock units to 14 employees as a significant inducement for their employment, highlighting the company's commitment to attracting talent.
- Executive Incentive Plan: Among the grants, Chief Commercial Officer Giovanni Cecere received 16,734 stock options and 11,082 restricted stock units, indicating a strategic focus on executive incentives aimed at enhancing long-term commitment from management.
- Exercise Price Setting: The stock options have an exercise price of $135.50 per share, based on the closing price on the grant date, reflecting the company's confidence in its market value while providing potential economic incentives for employees.
- Vesting Arrangements: The vesting of both stock options and restricted stock units is tied to the employees' continued service, ensuring long-term engagement in the company's growth, thereby enhancing team stability and cohesion.
See More
Tom Gardner Discusses AI and Investment Strategies
- Rise of AI Native Companies: Tom Gardner emphasizes that future winners will be AI native companies that fully integrate AI into their culture, enabling them to achieve higher productivity with fewer employees, thus gaining a competitive edge.
- Market Indicator Analysis: Gardner utilizes the Potential Growth Indicator and Market View Tool to guide investment decisions, with the former indicating potential market overvaluation and expected annual returns between 8.5% and 9%, while the latter forecasts closer to 10.5%, reflecting the market's complexity.
- Portfolio Strategy: Gardner stresses that investors should adopt an incremental strategy, focusing on cash inflows into the market to avoid significant losses during market volatility, particularly for those nearing retirement who need to manage their assets cautiously.
- Stock Recommendations for the Next Five Years: He recommends six stocks, including TransMedics, which is expected to triple in value over the next 6-7 years, and Aritzia, which shows strong financial management and growth potential in the U.S. market.
See More
