GET DAILY SIGNALSTempus AI (TEM) Delivers Solid Q3 Results with Revenue Up +23%
Key Takeaways
- Total revenue reached $411.5 million, up 23% year over year and ahead of the roughly $409 million consensus estimate.
- Adjusted earnings per share (EPS) came in at $0.07, versus analyst expectations for a loss of $0.08 per share.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $25.6 million, a meaningful profitability milestone for the company.
- Oncology testing volumes accelerated to 32% growth, while minimal residual disease (MRD) testing surged roughly 300% year over year.
- Management raised full-year 2026 revenue guidance to $1.60–$1.605 billion and reaffirmed about $65 million in adjusted EBITDA.
- The pending Personalis acquisition cleared regulatory review, with a shareholder vote scheduled for November 30.
Why These Results Matter
Tempus AI runs a dual business that combines precision-medicine diagnostics with a data and applications segment serving pharmaceutical partners. Given the company’s history of net losses, investors have been watching closely for signs of sustained profitability, and this quarter’s numbers provide a useful checkpoint on operating leverage. Following a strong first half of 2026, the third-quarter report also tested whether oncology volume momentum and data-licensing demand could continue at a larger scale. With several high-profile collaborations signed this year and a pending acquisition that would broaden cancer-detection capabilities, the results offer insight into both near-term execution and longer-term strategy. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
For the third quarter of 2026, ended September 30, Tempus AI (TEM) reported revenue of $411.5 million, an increase of 23% year over year and slightly above Wall Street’s forecast of roughly $409 million. Adjusted EPS was $0.07, a clear beat against consensus expectations for a loss of $0.08 per share, and adjusted EBITDA reached $25.6 million.
Diagnostics revenue rose 20% year over year to $303.5 million, led by oncology revenue of $172.6 million (up 28%) and hereditary cancer testing revenue of $111.3 million. Oncology unit volumes grew 32%, while MRD testing volumes surged roughly 300% to about 12,000 tests. Data and applications revenue increased 33% to $108.1 million, with the Insights data-licensing segment up 29%.
On a GAAP basis, the company narrowed its net loss to $14.9 million from $80.0 million a year earlier, helped by unrealized investment gains. Tempus raised its full-year revenue outlook to a range of $1.60 billion to $1.605 billion and reiterated approximately $65 million in adjusted EBITDA, while ending the quarter with $854 million in cash and marketable securities. From what I see, the combination of volume growth and data revenue is worth tracking closely.
Market Reaction and Investor Sentiment
Shares of Tempus AI (TEM) rose sharply following the report, climbing roughly 10% to 11% on Monday after gaining about 3.9% in premarket trading. The move reflected investor enthusiasm for the company’s first quarter of positive adjusted EPS, better-than-expected revenue, and raised full-year guidance. Sentiment was further supported by the announcement that the Personalis acquisition had cleared regulatory review, which investors viewed as progress toward strengthening Tempus’s position in the fast-growing MRD testing market. Still, the stock remains well below its 2025 all-time highs, and some participants continue to weigh the company’s premium valuation against its history of net losses and elevated operating expenses.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors will be watching whether Tempus can sustain its recent momentum across both business lines. Management has pointed to long-term revenue growth of roughly 25% annually, supported by rising oncology testing volumes and a data-licensing business that has gained traction through large pharmaceutical collaborations.
Several catalysts sit on the near-term horizon. The Personalis shareholder vote, scheduled for late November, is a key milestone for completing the acquisition and scaling the MRD franchise. Investors will also monitor reimbursement and pricing dynamics, particularly the rollout of updated oncology pricing tied to recent FDA approvals, which management expects to provide an uplift beginning in 2027.
On the cost side, the company continues to invest in research, sales, and AI infrastructure, so sustained progress toward positive adjusted EBITDA will depend on gross-profit growth outpacing operating expenses. Data-licensing contract renewals, competitive pressure in diagnostics, and the pace of new collaboration signings are additional factors that could shape results in the quarters ahead. I’m watching this closely as the company works through these variables.
Exploring AI Tools for Stock Research
In my own process, I occasionally turn to Tickeron’s AI Screener when I want to compare a name like Tempus AI against peers using technical patterns, fundamentals, and AI-driven signals. It helps surface trade ideas and build a more focused watchlist without replacing deeper fundamental work. The tool has become a regular part of how I scan for context around earnings reports and sector trends.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
TEM's Stochastic Oscillator sits in overbought zone for 3 days
The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for TEM moved out of overbought territory on September 29, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 14 similar instances where the indicator moved out of overbought territory. In 12 of the 14 cases, the stock moved lower in the following days. This puts the odds of a move lower at 86%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TEM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 86%.
TEM broke above its upper Bollinger Band on October 28, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for TEM entered a downward trend on November 02, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on TEM as a result. In 31 of 36 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 86%.
The Moving Average Convergence Divergence (MACD) for TEM just turned positive on October 28, 2026. Looking at past instances where TEM's MACD turned positive, the stock continued to rise in 20 of 23 cases over the following month. The odds of a continued upward trend are 87%.
TEM moved above its 50-day moving average on October 27, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TEM crossed bullishly above the 50-day moving average on November 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 7 of 8 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 88%.
Following a +7.89% 3-day Advance, the price is estimated to grow further. Considering data from situations where TEM advanced for three days, in 116 of 131 cases, the price rose further within the following month. The odds of a continued upward trend are 89%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 11 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: TEM's P/B Ratio (32.024) is slightly higher than the industry average of (4.699). TEM has a moderately low P/E Ratio (-54.500) as compared to the industry average of (13.248). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.133). Dividend Yield (0.000) settles around the average of (0.011) among similar stocks. P/S Ratio (8.696) is also within normal values, averaging (6.065).
The Tickeron Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating steady price growth. TEM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 98 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 99 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TEM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 96, placing this stock worse than average.
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