Why Tactile Systems Technology Stock Surged by Nearly 18% Today

Investors were wowed by both the company's trailing performance and its 2026 guidance.Next-generation medical device company Tactile Systems Technology (TCMD +17.82%) was the very picture of health on Wednesday, at least as far as its stock was concerned. Investors bid up the company's shares robustly, by nearly 18%, thanks to an impressive earnings report. Healthy increases Just after market close on Tuesday, Tactile published its fourth quarter and full-year 2025 figures. The company's total revenue rose by a sturdy 21% to $103.6 million, and net income in accordance with generally accepted accounting principles (GAAP) increased by 9% to $10.6 million ($0.46 per share). Image source: Getty Images. Both headline numbers beat the average analyst estimates. Prognosticators following Tactile were collectively expecting the company to post revenue below $94 million and per-share profit of $0.44. Tactile attributed the considerable revenue gain, in part, to a 66% increase in sales of its airway clearance products. It also recorded a 16% rise in both sales and rentals of its devices for treating lymphedema, a disorder of the body's lymphatic system. ExpandNASDAQ: TCMDTactile Systems TechnologyToday's Change(17.82%) $5.00Current Price$33.05Key Data PointsMarket Cap$627MDay's Range$32.82 - $37.7752wk Range$8.61 - $37.77Volume1.8MAvg Vol346KGross Margin74.16% Good guidance Investors were also cheered by Tactile's rather bullish guidance for the entirety of 2026. Management is expecting revenue to grow by 8% to 11% over the 2025 figure, specifically to $357 million to $365 million. This should shake out into a non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) number between $49 million $51 million. This would compare favorably to 2025's $44.8 million. I see almost nothing to dislike in both Tactile's quarter and its full-year 2025 results. The company has found more than one niche in which to thrive, and it is clearly effective at selling to those segments. Meanwhile, the medical device market is set to grow robustly, as the population ages and technology improves medical care. I'd consider buying Tactile's stock. Read NextFeb 20, 2024 •By Steve SymingtonWhy Tactile Systems Technology Stock Dropped TodayNov 8, 2021 •By Motley Fool TranscribersTactile Systems Technology, inc (TCMD) Q3 2021 Earnings Call TranscriptMay 3, 2021 •By Motley Fool TranscribersTactile Systems Technology, Inc. (TCMD) Q1 2021 Earnings Call TranscriptFeb 23, 2021 •By Motley Fool TranscribersTactile Systems Technology, Inc. (TCMD) Q4 2020 Earnings Call TranscriptMay 4, 2020 •By Motley Fool TranscribersTactile Systems Technology, Inc. (TCMD) Q1 2020 Earnings Call TranscriptFeb 26, 2020 •By Motley Fool TranscribersTactile Systems Technology, Inc. (TCMD) Q4 2019 Earnings Call TranscriptAbout the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanStocks MentionedTactile Systems TechnologyNASDAQ: TCMD$33.05 (+17.82%) $+5.00*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.