TransMedics Group shares fell 7.8% in after-market trading after the company reported second-quarter 2026 earnings per share of 44 cents, down 52.2% year over year and missing the Zacks Consensus Estimate by 12%. Revenue rose 20.7% to $189.9 million, beating estimates by 3.1%, driven by a 15.7% increase in net product revenues to $111.2 million and a 28.6% jump in service revenues to $78.8 million, which represented roughly 41% of total revenues. Adjusted operating profit declined 29.5% to $25.8 million, and the adjusted operating margin contracted 960 basis points to 13.6%, as research and development expenses nearly doubled to $31.6 million. The company raised the lower end of its 2026 revenue guidance to a range of $737 million to $757 million, implying 22% to 25% growth, but expects adjusted operating margin between 12.5% and 14%, below its prior expectation of approximately 16%, due to accelerated OCS Kidney investments.
TransMedics Group IncQ2 EPS miss and margin contraction due to higher R&D and OCS Kidney investments.
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