Tempus AI Q3 2026 Revenue Rises 23%, Adjusted EBITDA Reaches $25.6M

Tempus AI reported a 23% year-over-year increase in third-quarter revenue, supported by higher diagnostic testing volumes and expansion in its Data and Applications business, while its net loss narrowed sharply and adjusted EBITDA rose to $25.6 million. The precision-medicine company also projected approximately 25% revenue growth for 2026.

Revenue for the three months ended September 30, 2026, reached $411.5 million, up from $334.2 million a year earlier. Gross profit increased 27% to $266.7 million, lifting GAAP gross margin to 64.8% from 62.8%. Non-GAAP gross margin was 65.9%, compared with 63.6% in the prior-year quarter.

Tempus posted a GAAP operating loss of $56.9 million, versus $61.0 million a year earlier. Its net loss narrowed to $14.9 million, or $0.08 per basic and diluted share, from $80.0 million, or $0.46 per share.

On a non-GAAP basis, income from operations was $14.4 million, compared with a loss of $8.7 million in the third quarter of 2025. Non-GAAP net income totaled $13.4 million, or $0.07 per share, reversing a $19.6 million loss, or $0.11 per share. Adjusted EBITDA increased to $25.6 million from $1.5 million. Tempus ended the quarter with $854.4 million in cash and marketable securities.

Diagnostics volumes support growth

Diagnostics revenue rose 20% to $303.5 million from $252.9 million. Oncology revenue increased 28%, while oncology testing volume climbed 32% to approximately 101,500 from about 77,000.

The segment generated GAAP gross profit of $189.4 million, up from $154.2 million, with gross margin expanding to 62.4% from 61.0%. Non-GAAP Diagnostics gross margin increased to 63.5% from 61.7%.

Minimal residual disease, or MRD, testing volume reached 12,000 in the third quarter, compared with 9,000 in the second quarter, 6,500 in the first quarter and 4,700 in the fourth quarter of 2025. Tempus said MRD volume grew 300% year over year, although only about 15% of its salesforce was selling the products. Its xM tumor-naive assay represented approximately 5% of total MRD volume.

Tempus also said regulatory review had been cleared for its proposed acquisition of Personalis, with a Personalis shareholder vote scheduled for November 30, 2026. The transaction remained subject to closing.

In reimbursement, the company said FDA approval of its tumor-only xT CDx assay would allow its DNA solid-tumor portfolio to begin migrating from laboratory-developed tests reimbursed at approximately $2,900 to xT CDx at $4,500 starting January 1, 2027. Based on its third-quarter assay and payer mix, Tempus expects reimbursement developments to support an increase of more than $750 in therapy-selection average selling price over the next several years. It also identified potential FDA clearance for xF and broader commercial coverage as additional possible contributors, while presenting a path from a current average selling price of $1,880 to more than $2,600.

Data and Applications revenue rises 33%

Data and Applications revenue increased 33% to $108.1 million from $81.3 million, including 29% growth in the Insights business. Year-to-date licensing bookings reached approximately $500 million.

GAAP gross profit for the segment rose to $77.3 million from $55.7 million, and gross margin increased to 71.5% from 68.5%. Its non-GAAP gross margin was 72.7%, compared with 69.7% a year earlier.

Tempus announced a collaboration with Bristol Myers Squibb covering licenses for oncology data and models. The arrangement also includes work with Pathos to build datasets and models in Alzheimer’s disease. Tempus said the collaboration could generate up to $192.5 million in Data and Applications revenue over five years.

2026 outlook targets approximately 25% growth

For 2026, Tempus expects revenue of $1.60 billion to $1.605 billion, representing approximately 25% year-over-year growth, and adjusted EBITDA of about $65 million, an improvement of roughly $72 million from 2025.

Fourth-quarter revenue is projected at $458 million to $463 million. The outlook assumes continued oncology growth, an improving hereditary-testing growth rate and approximately 30% year-over-year growth in Data and Applications revenue. Fourth-quarter adjusted EBITDA is expected to be about $34 million.

The full-year outlook also incorporates approximately $215 million of stock-based compensation, $40 million of interest expense, $110 million of depreciation and amortization, and $15 million of joint-venture losses.

Tempus presented an illustrative long-term framework calling for approximately 25% annual top-line growth over the next three years, supported by Diagnostics and the increasing scale of Data and Applications. Management plans to reinvest most incremental gross-profit growth in platform expansion while seeking to generate meaningful adjusted EBITDA and positive cash flow. The company said greater operating leverage could allow more growth to flow through to adjusted EBITDA as the platform matures, but emphasized that the framework does not constitute formal financial guidance.

The company cautioned that its forecasts are approximate and difficult to predict with complete accuracy. It also noted that its forward-looking statements are exposed to competitive conditions, a rapidly changing operating environment and other risks described in its regulatory filings. Tempus’s non-GAAP measures exclude items including stock-based compensation, acquisition-related costs and certain amortization, and may not be directly comparable with similarly named measures used by other companies.