Key Highlights

  • TEM reported third-quarter 2026 Revenue of $411.5 million, up 23.1% (calculated) from $334.2 million a year earlier.
  • Diagnostics revenue rose to $303.5 million, while data and applications revenue climbed to $108.1 million, up 32.9% (calculated).
  • The net loss narrowed to $14.9 million, or $0.08 per share, from $80.0 million, or $0.46 per share, in the prior-year quarter.
  • Adjusted EBITDA was $25.6 million, compared with $1.5 million a year earlier.
  • Oncology tests reached about 101,500, up from about 77,000, and cash and marketable securities ended the quarter at $854 million.

Diagnostics and Data Businesses Both Accelerate in the September Quarter

Tempus AI (NASDAQ:TEM) reported results for the third quarter ended Sep 30, 2026 on Nov 2, 2026, with total revenue of $411.5 million versus $334.2 million a year earlier. The company pairs laboratory testing with a large library of de-identified clinical and molecular data, using artificial intelligence to support cancer care and drug development.

Diagnostics revenue was $303.5 million, up from $252.9 million. Management said oncology revenue grew 28% to about $173 million on Volume growth of 32%, while hereditary testing contributed about $111 million.

Data and applications revenue reached $108.1 million, up from $81.3 million. The filing credited $19.9 million of the increase to Insights data licensing and $6.4 million to the Next product.

Narrower Net Loss Helped by Equity Gains as Adjusted EBITDA Turns Meaningfully Positive

Tempus AI posted a net loss of $14.9 million, or $0.08 per share, compared with $80.0 million, or $0.46 per share, a year earlier. Other income was $47.1 million, and the filing said a $44.0 million increase in unrealized gains on marketable equity securities drove the year-over-year change.

The loss from operations was $56.9 million versus $61.0 million. Adjusted EBITDA, a non-GAAP measure, was $25.6 million versus $1.5 million a year ago.

Cost of revenues was $144.8 million (calculated), implying a gross Margin of about 64.8% (calculated), up from 62.8% (calculated). Selling, general and administrative expense rose to $231.9 million from $187.9 million.

The company held $590.5 million of cash and cash equivalents on Sep 30, 2026, and the CEO put cash and marketable securities at $854 million.

Pharma Data Deals, a Pending Acquisition and an Oncology Pricing Step-Up Shape the Outlook

Management said it signed a deal to license oncology data and models from a large pharmaceutical company for up to $138 million over five years. A related Alzheimer's disease data collaboration adds $55 million over five years, for $193 million of expected additional revenue.

Tempus AI also agreed in July to acquire a molecular diagnostics company at a $1.5 billion enterprise value, or $16.25 per share, paid mainly in Class A stock. The CEO said regulatory review is cleared, a Shareholder meeting is set for Nov 30, and closing is expected in the fourth quarter.

Management raised its 2026 revenue guidance and kept its adjusted EBITDA target at about $65 million. The transcript garbles the new revenue range, so it is not stated here.

The CFO said updated pricing for a tumor-only version of an FDA-approved sequencing test starts Jan 1, 2027, adding about $80 million of oncology revenue uplift next year. Hereditary unit growth returned to low double digits in September and October.

Path to Sustained Adjusted Profit Depends on Reinvestment Pace and Deal Closing

Tempus AI delivered 23% revenue growth, a much narrower loss and positive adjusted EBITDA, and management targets Long-term Growth of about 25% a year. It plans to reinvest roughly two-thirds of incremental Gross Profit and to absorb the acquired business's losses after closing. Next markers are the Nov 30 shareholder vote and the fourth-quarter close.