Tempus AI (NASDAQ:TEM) Announces Quarterly Earnings Results

Tempus AI (NASDAQ:TEM – Get Free Report) issued its earnings results on Monday. The company reported $0.07 EPS for the quarter, topping the consensus estimate of ($0.09) by $0.16, FiscalAI reports. The firm had revenue of $411.54 million during the quarter, compared to the consensus estimate of $409.39 million. Tempus AI had a negative return on equity of 48.29% and a negative net margin of 12.54%. The business’s quarterly revenue was up 23.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.46) earnings per share.

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 Down 0.9%

NASDAQ TEM opened at $77.80 on Wednesday. The business’s 50-day moving average price is $71.04 and its two-hundred day moving average price is $57.17. The company has a current ratio of 3.30, a quick ratio of 3.16 and a debt-to-equity ratio of 3.06. The firm has a market capitalization of $14.04 billion, a PE ratio of -73.40 and a beta of 3.61. Tempus AI has a 12 month low of $40.77 and a 12 month high of $89.09.

Key Tempus AI News

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

• Positive Sentiment: Tempus reported Q3 revenue of $411.5 million, up 23.1% year over year, and adjusted earnings of $0.07 per share versus analysts’ expected loss. Data and Applications revenue grew 33%, helping support the results. Tempus Reports Third Quarter 2026 Results
• Positive Sentiment: The company raised its 2026 revenue outlook to about $1.6 billion, citing oncology demand and expanding data partnerships. Management also pointed to reimbursement-related pricing gains as a potential growth driver in 2027. Q3 Earnings Call Highlights
• Positive Sentiment: Analysts raised targets after the results: Needham lifted its target to $89, while Baird and Cantor Fitzgerald raised theirs to $92, maintaining positive ratings. A broader rise in AI stocks also provided a favorable sector backdrop. Needham Analyst Says Stock Expected to Rise AI Stocks Rise at U.S. Market Open
• Negative Sentiment: Some coverage cautions that shares may be fully valued after a sharp recent run. Cash burn and the need to deliver on growth expectations remain concerns; UBS reiterated a Hold rating, citing weaker hereditary testing results relative to oncology execution. Stock Looks Fully Priced Following Its Run UBS Hold Rating
• Negative Sentiment: The proposed Personalis acquisition carries execution and integration risks that could weigh on future performance. Personalis Acquisition Integration Risks

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. Needham & Company LLC boosted their price objective on Tempus AI from $75.00 to $89.00 and gave the stock a “buy” rating in a research report on Monday. Rothschild & Co Redburn started coverage on Tempus AI in a research report on Tuesday, September 8th. They issued a “neutral” rating and a $67.00 target price for the company. Raymond James Financial set a $80.00 price target on Tempus AI in a research note on Wednesday, September 2nd. TD Cowen restated a “buy” rating on shares of Tempus AI in a report on Wednesday, July 15th. Finally, Stifel Nicolaus lowered their price objective on Tempus AI from $60.00 to $50.00 and set a “hold” rating for the company in a research note on Monday, August 3rd. Eleven research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $79.37.

Get Our Latest Research Report on Tempus AI

Insiders Place Their Bets

In other news, EVP Andrew Polovin sold 2,951 shares of the stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $75.00, for a total transaction of $221,325.00. Following the completion of the sale, the executive vice president directly owned 135,189 shares in the company, valued at $10,139,175. This represents a 2.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nadja West sold 3,000 shares of Tempus AI stock in a transaction on Friday, August 28th. The stock was sold at an average price of $69.00, for a total transaction of $207,000.00. Following the transaction, the director directly owned 31,981 shares of the company’s stock, valued at $2,206,689. This represents a 8.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,256,777 shares of company stock valued at $86,356,352 over the last three months. Insiders own 24.26% of the company’s stock.

About Tempus AI

(Get Free Report)

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.

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