Why TransMedics Stock Is Skyrocketing Today

Key Points

• TransMedics grew sales by 38% during the second quarter and saw its profit margins double compared to last year.

• Despite this, there may still be room for improvement, according to its CEO.

• TransMedics also received a conditional go-ahead to launch a trial for its next-gen lung organ care system.

• 10 stocks we like better than TransMedics Group ›

Shares of leading organ transplant technology company TransMedics (NASDAQ: TMDX) rose 15% as of noon ET on Thursday, according to data provided by S&P Global Market Intelligence.

TransMedics reported second-quarter earnings that rocketed past analysts' expectations. The company's revenue grew by 38% in Q2, and its earnings per share of $0.92 doubled analysts' anticipation.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

These strong results, paired with management raising full-year sales guidance from $575 million at the midpoint to $595 million, sparked a move higher for the stock.

TransMedics sees streamlining efficiency

TransMedics' Organ Care System (OCS) keeps donated livers, hearts, and lungs healthy and functioning on the way to their recipients. Not only does the OCS provide better outcomes for donated organs, but TransMedics' burgeoning logistical network allows for these organs to travel much longer distances, generating higher utilization rates.

The value of these offerings for donees and organ transplant centers is clear to see, considering that the company's sales have risen more than tenfold since 2022.

Image source: Getty Images.

While Q2 results show this rapid uptake continuing, it also revealed that TransMedics is delivering on its promise to grow profitably. The company's net profit margin expanded from 11% in Q2 2024 to 22% this year as its nascent logistical unit grew more efficient.

Yet the best may remain ahead. CEO Waleed Hassanein believes the company is on track to grow operating margins from 23% today to 30% by 2028.

On top of this rosy outlook, TransMedics received conditional Investigations Device Exemption approval from the U.S. Food and Drug Administration for its next-gen Lung OCS, letting it start a trial.

With TransMedics developing next-gen lung and heart platforms, while eyeing a potential expansion in international markets, its growth story could still just be starting.

Should you invest $1,000 in TransMedics Group right now?

Before you buy stock in TransMedics Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and TransMedics Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $638,629!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,098,838!*

Now, it’s worth noting Stock Advisor’s total average return is 1,049% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Josh Kohn-Lindquist has positions in TransMedics Group. The Motley Fool has positions in and recommends TransMedics Group. The Motley Fool has a disclosure policy.