Tempus AI Q3 Results Show Momentum

Tempus AI (TEM) reported third-quarter 2026 results on Nov. 2, showing accelerating oncology testing and Data & Applications growth alongside a positive adjusted EBITDA, prompting management to raise its full-year revenue guidance.

Quarter Results and Profitability

For the three months ended Sept. 30, 2026, Tempus reported total revenue of $411.5 million, a 23% increase year over year, with gross profit rising 27% to $266.7 million. The gains were broad-based across its diagnostic testing and data-services businesses.

Diagnostics revenue reached $303.5 million, up 20% from a year earlier, driven by 32% growth in oncology volume and a 3% increase in hereditary revenue. Data & Applications revenue rose 33% to $108.1 million, with Insights revenue up 29%, reflecting stronger demand for Tempus’s analytics and related services.

Adjusted EBITDA, a non-GAAP measure of earnings before interest, taxes, depreciation, and amortization adjusted for specified items, was positive at $25.6 million, compared with $1.5 million a year earlier. The company reported a net loss of $14.9 million, an improvement from an $80.0 million loss in the prior-year quarter. The 2026 result included $50.8 million in stock-based compensation and related employer payroll taxes and $42.8 million of unrealized gains on marketable securities. Cash and marketable securities totaled $854.4 million at quarter-end.

Guidance, Partnerships, and Personalis Acquisition

Following the strong quarter, Tempus raised its 2026 revenue guidance to a range of $1.60 billion to $1.605 billion, representing about 25% annual growth, while maintaining adjusted EBITDA guidance near $65 million.

The company disclosed a collaboration with Bristol Myers Squibb to license oncology data and models for up to $137.5 million over five years. A separate partnership involving Bristol Myers Squibb, Pathos, and Tempus is expected to generate $55 million over five years for Alzheimer’s disease datasets and models. These multi-year agreements highlight growing commercial demand for Tempus’s Data & Applications offerings.

Management also announced that regulatory review of the pending acquisition of Personalis had cleared. A Personalis shareholder meeting to approve the transaction is scheduled for Nov. 30, 2026, with shareholder approval required to complete the deal.

Together, the quarter’s revenue acceleration, positive adjusted EBITDA, raised full-year revenue outlook, new multi-year collaborations, and progress on the Personalis acquisition underpin management’s case for accelerating commercial momentum.