TransMedics Group, Inc. (TMDX) delivered earnings per share (EPS) of 92 cents in the second quarter of 2025, which surged 162.9% year over year. The figure surpassed the Zacks Consensus Estimate by 91.7%.\n\nTransMedics registered revenues of $157.4 million in the second quarter, up 37.7% year over year. The figure surpassed the Zacks Consensus Estimate by 6.8%.\n\nPer management, the uptick resulted from the increase in utilization of the Organ Care System (OCS), primarily in liver and heart through the National OCS Program (NOP), and additional revenues generated by the addition of TransMedics logistics services.\n\nDuring the reported quarter, TMDX was able to cover 79% of its NOP missions requiring air transport compared with 78% in the first quarter of 2025.\n\nShares of this company gained nearly 10.5% yesterday. The company’s shares have surged 90.7% in the year-to-date period against the industry’s decline of 7.5%. The broader S&P 500 Index has increased 7.9% in the same time frame.\n\nImage Source: Zacks Investment Research\n\nTMDX derives revenues via two sources — Net product revenue and Service revenue.\n\nIn the second quarter of 2025, Net product revenues totaled $96.1 million, up 33.9% year over year. Growth was driven by increased organ utilization in the liver and continued OCS adoption across both the liver and the heart.\n\nService revenues totaled $61.3 million, up 43.9% year over year, driven primarily by logistics.\n\nTransplant Logistics’ services revenues for second-quarter 2025 were $29.8 million, up 56% year over year. This resulted from the continued expansion and utilization of TransMedics’ aviation fleet.\n\nIn the quarter under review, TransMedics’ gross profit increased 39.4% year over year to $96.6 million. The gross margin expanded 78 basis points (bps) to 61%.\n\nSelling, general and administrative expenses rose 2.8% year over year to $44.1 million. Research, development and clinical trials expenses surged 14.9% year over year to $15.9 million. Total operating expenses of $60 million increased 5.8% year over year.\n\nOperating profit totaled $36.6 million, reflecting a 192.3% jump from the prior-year quarter. The operating margin in the second quarter expanded 1230 bps to 23.2%.\n\nTransMedics exited second-quarter 2025 with cash of $400.6 million compared with $310.1 million at the end of first-quarter of 2025. Total long-term debt at the end of second-quarter 2025 was $59.5 million compared with $59.4 million at the end of first-quarter 2025.\n\nCummulative net cash provided by operations at the end of the second quarter was $88.8 million compared with $22.3 million at the second quarter of 2024-end.\n\nTransMedics currently carries a Zacks Rank #3 (Hold).\n\nSome better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP), West Pharmaceutical Services, Inc. (WST) and Boston Scientific Corporation (BSX).\n\nMedpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.\n\nMedpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.\n\nWest Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.\n\nWest Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.\n\nBoston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).\n\nBoston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.\n\nOur team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.\n\nThis top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

TMDX Stock Gains Post Q2 Earnings & Revenue Beat, Margins Up

TransMedics Group (TMDX) reported strong Q2 2025 earnings, with EPS rising 162.9% YoY and revenue up 37.7% YoY. The company's stock surged 10.5% following the results, outperforming the S&P 500. Other medical sector companies like Medpace, West Pharmaceutical, and Boston Scientific also exceeded earnings estimates.