The Andover-based medical technology firm, which focuses on heart, lung, and liver transplant therapies, saw service revenue climb 29% to $78.8 million, while product revenue rose 16% to $111.2 million. This performance prompted management to raise the low end of its full-year 2026 revenue guidance to a range of $737 million to $757 million.
TransMedics Reports Revenue Growth Amid Strategic Expansion
TransMedics Group reported $189.9 million in total revenue for the second quarter of 2026, marking a 21% increase over the same period last year. Despite the growth in utilization of its Organ Care System, the company faced higher operating expenses, leading to a decline in net income compared to 2025.
Operating expenses reached $89.5 million for the quarter, up from $60 million a year ago. CEO Waleed Hassanein attributed the spending to aggressive investments in the OCS Kidney program, Gen 3.0 technology, and infrastructure. The company also finalized its acquisition of PAD Aviation on July 1, a move designed to build a dedicated European organ logistics network. While net income fell to $14.7 million—or $0.41 per share—from $34.9 million in the prior-year period, leadership maintains that these capital allocations are critical for scaling long-term growth.
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