Tempus AI, Inc. (NASDAQ:TEM) shares advanced 4.18% in pre-market trading on Monday after the healthcare technology company reported stronger-than-expected third-quarter 2026 earnings and raised its full-year revenue outlook, supported by growth in oncology diagnostics and data services.
The company reported adjusted earnings of $0.07 per share, exceeding the analyst consensus of $0.01. Revenue increased 23% year over year to $411.5 million, compared with $334.2 million in the corresponding period of 2025.
Tempus also raised its full-year revenue guidance to between $1.60 billion and $1.605 billion, representing approximately 25% annual growth, while maintaining its adjusted EBITDA forecast of around $65 million.
Diagnostics Revenue Increases 20% as Oncology Volumes Grow
Tempus reported third-quarter diagnostics revenue of $303.5 million, an increase of 20% compared with the previous year.
The growth was supported by a 32% increase in oncology testing volumes, reflecting continued expansion in the company’s diagnostic services.
Minimal Residual Disease (MRD) testing volumes also increased substantially, rising 300% to approximately 12,000 tests during the quarter.
MRD testing is used to detect small amounts of cancer that may remain following treatment, providing information that can support clinical monitoring.
The increase in testing activity contributed to the company’s broader diagnostics growth.
Data and Applications Revenue Climbs 33%
Tempus reported revenue of $108.1 million from its Data and Applications segment, representing a 33% increase year over year.
The segment’s performance reflected continued expansion in the company’s data-related services and applications.
Founder and Chief Executive Officer Eric Lefkofsky highlighted the contribution of both business divisions.
“Q3 was another record quarter, as we delivered $411.5 million of revenue, led by accelerating unit growth of 32% in our oncology business and increasing momentum of 33% revenue growth in Data & Applications,” Lefkofsky said.
The results demonstrate growth across both Tempus’s diagnostics operations and its data-focused business.
Adjusted EBITDA Improves to $25.6 Million
Tempus reported adjusted EBITDA of $25.6 million for the third quarter, compared with $1.5 million in the same period last year.
The improvement accompanied higher revenue across its operating segments.
The company’s net loss also narrowed significantly to $14.9 million, compared with a loss of $80 million in the third quarter of 2025.
The reduction in losses indicates improving financial performance as Tempus expands its diagnostics and data operations.
However, the company remained loss-making on a reported net income basis during the quarter.
Pharmaceutical Partnerships Support Data Licensing Growth
Tempus announced strategic collaborations with Bristol Myers Squibb, Merck and Moderna during the quarter.
The agreements contributed to total data licensing bookings exceeding $550 million for the year to date.
The partnerships reflect demand for Tempus’s healthcare data capabilities among pharmaceutical companies.
Data licensing bookings represent contracted business activity and should not be interpreted as revenue already recognised.
The company did not disclose the individual financial terms of the three collaborations in the supplied announcement.
Full-Year Revenue Guidance Raised to $1.605 Billion
Following the third-quarter performance, Tempus increased its fiscal 2026 revenue forecast to a range of $1.60 billion to $1.605 billion.
The midpoint of $1.6025 billion is slightly above the analyst consensus estimate of $1.6 billion.
The updated outlook represents approximately 25% revenue growth for the full year.
Tempus also reaffirmed its expectation for adjusted EBITDA of approximately $65 million in 2026.
The maintained profitability forecast suggests that management continues to expect substantial improvement in adjusted operating performance alongside revenue expansion.
Outlook
Tempus AI’s third-quarter results demonstrated continued growth in oncology diagnostics and data services, with revenue increasing 23% to $411.5 million and adjusted earnings exceeding market expectations.
The company’s diagnostics business benefited from higher testing volumes, while Data and Applications revenue grew 33%.
Adjusted EBITDA improved to $25.6 million, and the net loss narrowed considerably from the previous year.
Investors will be monitoring continued oncology testing growth, MRD adoption, the conversion of data licensing bookings into revenue and progress towards the company’s updated annual revenue target.
The raised full-year guidance and expanding pharmaceutical partnerships provide additional indicators of Tempus’s commercial momentum heading into the final quarter of 2026.