Shares of leading organ transplant technology company TransMedics (TMDX 12.75%) 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.

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.