TransMedics stock falls 50% after Q1 earnings miss but remains a strong buy on growth plans.

TransMedics saw its stock drop nearly 50% in 2026 after missing Q1 earnings estimates despite 21% revenue growth to $174 million, driven by strong liver segment sales. Higher costs squeezed margins and net income, but management maintains 2026 revenue guidance of $727–$757 million with 20–25% growth and aims for long-term gross margins around 60%. The company is expanding its portfolio with CHOPS and aggressively rolling out in Europe to grow its market. Despite recent setbacks, TransMedics remains a strong buy due to its robust long-term growth initiatives.