TransMedics Group, Inc. (TMDX) AI Stock Analysis

TransMedics Group, Inc. is a commercial-stage medical technology company focused on organ transplant therapy for patients with end-stage organ failure. Founded in 1998 and based in Andover, Massachusetts, the company developed the Organ Care System (OCS) to perfuse, optimize, and monitor donor organs outside the human body in near-physiologic conditions. Its specialized product platforms include OCS LUNG for standard criteria donor lungs in double-lung transplants, OCS Heart for extracorporeal perfusion of donor hearts, and OCS Liver for preserving donor livers before transplantation.

Between FY2021 and FY2025, TransMedics achieved a five-year revenue compound annual growth rate of 88.2%, with annual sales expanding from $30.3M to $605.5M. The business turned profitable in FY2024 with net income of $35.5M, expanding to $190.3M in FY2025 as operating margin reached 17.9%. For the trailing twelve months ended June 30, 2026, revenue stood at $668.5M with an operating margin of 12.5% and diluted EPS of $3.86. In the latest quarter ended June 30, 2026, quarterly revenue increased 20.7% year-over-year, while quarterly earnings declined 55.8%.

As of June 30, 2026, TransMedics held $472.7M in cash and short-term investments against $867.7M in total debt, resulting in net debt of $395.0M. The company reported a current ratio of 6.62 and a debt-to-equity ratio of 1.67 on shareholders' equity of $518.1M. In FY2025, operating cash flow reached $192.8M and free cash flow turned positive at $133.6M. Capital expenditures were $59.3M, while share repurchases totaled $138,000. The share count increased 46.6% over five years.

At $70.78 per share, TransMedics carries a market capitalization of $2.45B and an enterprise value of $3.41B. The stock trades at a trailing P/E of 18.3x, below the 24.6x median of its US-listed Healthcare peers, but its forward P/E of 37.3x is higher than the peer median of 17.3x. Its price-to-sales multiple is 3.7x compared to the peer median of 4.1x, and EV/EBITDA is 26.2x against 12.0x for peers. Over the past year, TMDX shares dropped 38.8%, underperforming the S&P 500 (SPY) gain of 16.8%.

TransMedics has 6 Strong Buy, 3 Buy, and 4 Hold ratings, with no Sell recommendations. The mean price target of $98.73 represents 39.5% upside from the October 16, 2026 close of $70.78. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $742.2M and EPS of $1.51, representing a 42.4% drop in annual earnings. For the following fiscal year, 10 analysts anticipate EPS to grow 49.0% to $2.25 on revenue of $874.7M. The company beat EPS estimates in 1 of the last 4 quarters, and the next earnings date is November 4, 2026.

This page is an AI-written research summary of TransMedics Group, Inc. (TMDX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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