Tempus AI (NASDAQ:TEM) Announces Earnings Results

Tempus AI (NASDAQ:TEM) released its earnings results on Monday. The company reported $0.07 EPS for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.16, FiscalAI reports. Tempus AI had a negative net margin of 17.77% and a negative return on equity of 50.28%. The company had revenue of $411.54 million for the quarter, compared to analysts’ expectations of $409.39 million. During the same quarter last year, the business earned ($0.46) EPS. The firm’s revenue was up 23.1% compared to the same quarter last year.

Here are the key takeaways from Tempus AI’s conference call:

• Strong Q3 performance: Revenue rose 23% year over year to $411.5 million, driven by 32% oncology unit growth and 33% growth in Data and Applications. Adjusted EBITDA reached $25.6 million, marking a meaningful profitability inflection.
• Tempus raised its 2026 revenue guidance to $1.60 billion-$1.605 billion while maintaining its approximately $65 million Adjusted EBITDA outlook. Management said gross-profit growth is increasingly supporting operating leverage, although it plans to continue reinvesting heavily.
• Recent strategic data collaborations with Bristol Myers Squibb, Pathos, Moderna, and Merck are expected to generate approximately $192.5 million of additional revenue over five years from the BMS and Pathos agreements alone. Management also reported stronger visibility into 2027-2029 as customers move toward multiyear subscriptions and AI-modeling arrangements.
• The pending Personalis acquisition could expand Tempus’s minimal residual disease (MRD) offering, but broader sales deployment is likely to wait until reimbursement improves and the tests generate positive gross profit per case. Management expects a potential acceleration in MRD growth from mid-to-late 2027 into 2028.
• Oncology testing is positioned for significant 2027 pricing tailwinds: the FDA-approved tumor-only xT assay is expected to add roughly $80 million of oncology ASP uplift, with further upside possible if xF receives FDA approval. Hereditary cancer testing is expected to return to low-double-digit unit growth, though reimbursement changes remain a potential headwind.

Tempus AI Trading Up 8.7%

Shares of TEM opened at $78.48 on Tuesday. The stock has a market capitalization of $14.16 billion, a PE ratio of -54.50 and a beta of 3.54. The company’s fifty day moving average is $70.80 and its 200 day moving average is $57.12. The company has a debt-to-equity ratio of 3.06, a quick ratio of 3.16 and a current ratio of 3.30. Tempus AI has a fifty-two week low of $40.77 and a fifty-two week high of $90.53.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on TEM shares. Needham & Company LLC increased their price objective on shares of Tempus AI from $75.00 to $89.00 and gave the company a “buy” rating in a report on Monday. Raymond James Financial set a $80.00 target price on shares of Tempus AI in a report on Wednesday, September 2nd. UBS Group started coverage on shares of Tempus AI in a research report on Wednesday, September 9th. They set a “neutral” rating and a $70.00 target price for the company. Wall Street Zen raised shares of Tempus AI from a “sell” rating to a “hold” rating in a research note on Saturday, July 25th. Finally, Roth Capital started coverage on shares of Tempus AI in a research note on Tuesday, September 8th. They issued a “neutral” rating and a $67.00 price target on the stock. Eleven analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Tempus AI currently has an average rating of “Hold” and an average price target of $76.11.

Key Tempus AI News

Here are the key news stories impacting Tempus AI this week:

• Positive Sentiment: Q3 earnings and revenue beat expectations. Tempus reported adjusted earnings of $0.07 per share versus the expected $0.09 loss, while revenue rose 23.1% year over year to $411.54 million, slightly above the $409.39 million consensus. The narrower loss and strong top-line growth were the primary catalysts for the stock’s advance. Tempus Reports Third Quarter 2026 Results
• Positive Sentiment: Management raised its 2026 revenue outlook. Tempus now expects approximately $1.60 billion to $1.605 billion in 2026 revenue and continues to target about $65 million in adjusted EBITDA. Investors were encouraged by growth in the Data and Applications segment, which expanded 33% and carries gross margins above 71%, as well as the company’s collaboration with Bristol Myers Squibb. Tempus 2026 Revenue Outlook
• Positive Sentiment: Analyst and trading signals improved. Needham raised its price target from $75 to $89 and maintained a Buy rating. Trading activity also showed elevated call-option demand, while Cathie Wood’s Ark Investment Management reportedly purchased about $11.2 million of TEM shares, adding to bullish sentiment.
• Neutral Sentiment: Analyst views remain mixed. UBS reiterated a Hold rating with an $80 price target, citing solid oncology execution but weaker hereditary testing. This suggests the earnings beat was encouraging, but some analysts remain cautious about the pace and quality of growth. Tempus UBS Rating
• Negative Sentiment: Personalis acquisition risks remain. Reports highlight potential challenges integrating Personalis, including execution complexity and the possibility that deal-related costs or operational disruption could weigh on future performance. Personalis Integration Risks

Insider Buying and Selling at Tempus AI

In other news, CEO Ryan Fukushima sold 41,095 shares of the business’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $49.61, for a total value of $2,038,722.95. Following the sale, the chief executive officer directly owned 562,463 shares in the company, valued at $27,903,789.43. The trade was a 6.81% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Eric P. Lefkofsky sold 250,000 shares of the company’s stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $77.47, for a total transaction of $19,367,500.00. Following the sale, the chief executive officer owned 100,000 shares in the company, valued at $7,747,000. This represents a 71.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,256,777 shares of company stock worth $86,356,352 over the last three months. 24.26% of the stock is owned by company insiders.

About Tempus AI

Tempus AI, Inc is a healthcare technology company that uses artificial intelligence and data analytics to support precision medicine. The company combines clinical, molecular and imaging data to help physicians make more informed treatment decisions and to help researchers and biopharmaceutical companies develop therapies.

Its offerings include genomic testing and analysis, such as tissue- and blood-based tests, as well as software tools designed to assist with clinical decision-making, patient matching for clinical trials and the management of healthcare data.