Tempus AI, Inc. (TEM): Results of Operations and Financial Condition
Tempus AI, Inc. (TEM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Tempus Reports Second Quarter 2026 Results CHICAGO, July 30, 2026 — Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the adoption of AI to advance precision medicine, today reported financial results for the quarter ended June 30, 2026. “Q2 was another exc
How this was made
The 30-second read
Why it matters
The most tradable elements are the raised 2026 revenue guidance range, expected full-year Adjusted EBITDA, and the stated assumption that Personalis will not affect 2026 guidance, plus the Personalis acquisition terms and FDA approval for tumor-only xT CDx.
Market read
This is a primary earnings-and-guidance disclosure with additional regulatory and M&A context, likely driving near-term repricing and positioning ahead of the call.
What to watch
Stock-based compensation and marketable security unrealized gains materially affect GAAP net income, so traders may focus more on cash flow and non-GAAP operating trajectory than GAAP earnings.
Tempus Reports Second Quarter 2026 Results
Revenue increased 22% year-over-year to $382.5 million, gross profit increased 26% year-over-year to $246.5 million, and the company reported GAAP net income of $5.6 million and Adjusted EBITDA of $8.0 million. Tempus increased full-year 2026 revenue guidance to $1.595 to $1.605 billion.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $382,486 | – | 22 % |
| Gross profitGAAP | $246,498 | – | 26 % |
| Loss from operationsGAAP | $ (75,913 ) | – | 23 % |
| Non-GAAP loss from operationsnon-GAAP | $ (2,708 ) | – | (84 )% |
| Net income (loss)GAAP | $ 5,642 | – | 113 % |
| Non-GAAP net lossnon-GAAP | $ (7,726 ) | – | (79 )% |
| Adjusted EBITDAnon-GAAP | $ 8,044 | – | 244 % |
| Net income (loss) per share, basicGAAP | $ 0.03 | – | 112 % |
| Non-GAAP net loss per share, basicnon-GAAP | $ (0.04 ) | – | (82 )% |
| Oncology volume growthother | 31% | – | 31% year-over-year |
| Molecular residual disease (MRD) volumeother | 9,000 tests | – | – |
| Stock compensation expense and related employer payroll taxesGAAP | $55.6 million | – | – |
| Unrealized gains on marketable securitiesGAAP | $98.5 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| DiagnosticsDriven by Oncology volume growth of 31%, offset by Hereditary revenue growth of 5%. | $289.3 million | – | 20% year-over-year growth |
| Data and ApplicationsInsights growing 36%. | $93.2 million | – | 28% year-over-year growth |
full year 2026 outlook
- Revenue$1.595 to $1.605 billion
- Note~25% annual growth
- NoteAdjusted EBITDA of ~$65 million
- NoteGuidance assumes no impact from the Personalis transaction, which is expected to close in late Q4 2026 or early 2027.
What drove it
- Diagnostics generated $289.3 million of revenue, driven by Oncology volume growth of 31%, offset by Hereditary revenue growth of 5%.
- Data and Applications generated $93.2 million of revenue, with Insights growing 36%.
- Gross profit increased 26% year-over-year to $246.5 million, led by growth in Data and Applications.
- Signed large deals with BioNTech, Daiichi Sankyo, Level Set Bio, and Incyte Pharmaceuticals, contributing to ~$200 million in total bookings this quarter.
- Received FDA approval for tumor-only xT CDx assay.
- Successfully delivered the first version of its foundation model to AstraZeneca.
Concerns
- GAAP loss from operations was $ (75,913 ).
- Non-GAAP net loss was $ (7,726 ).
- GAAP net income included $98.5 million in unrealized gains on marketable securities.
- Guidance assumes no impact from the Personalis transaction.
- The Personalis transaction is expected to close in late Q4 2026 or early 2027.
What to watch
- Oncology volume growth of 31% year-over-year and molecular residual disease volume of 9,000 tests.
- Data and Applications growth, including Insights growth of 36%.
- Execution on ~$200 million in new Data and Applications licenses and total bookings this quarter.
- Migration of tissue testing to ADLT pricing following FDA approval of xT Tumor Only.
- Timing of the Personalis transaction, expected to close in late Q4 2026 or early 2027.
- Delivery against full-year 2026 revenue guidance of $1.595 to $1.605 billion and expected Adjusted EBITDA of ~$65 million.
Balance sheet and cash flow
- Cash and marketable securities of $820.7 million as of June 30, 2026.
- Completed a $460 million offering of 0.0% convertible senior notes due 2032.
Analysis
Tempus reported second-quarter revenue of $382.5 million, up 22% year-over-year. Diagnostics generated $289.3 million, with 20% year-over-year growth, while Data and Applications generated $93.2 million, with 28% year-over-year growth. Within Diagnostics, Oncology volume growth was 31% year-over-year, compared with 28% last quarter, while Hereditary revenue growth was 5%. Within Data and Applications, Insights grew 36%.
Gross profit rose 26% year-over-year to $246.5 million, led by growth in Data and Applications. The company remained loss-making from operations, with a GAAP loss from operations of $ (75,913 ), although the non-GAAP loss from operations narrowed to $ (2,708 ) from $ (17,036 ). GAAP net income was $5.6 million, compared with a net loss of $(42.8 million) in Q2 of 2025, and included $98.5 million in unrealized gains on marketable securities and $55.6 million of stock compensation expense and related employer payroll taxes.
Adjusted EBITDA was $8.0 million, compared with ($5.6 million) in Q2 of 2025. Non-GAAP net loss was $ (7,726 ), and non-GAAP net loss per share, basic was $ (0.04 ). The quarter included 9,000 MRD tests, up from 6,500 last quarter. Tempus also cited large contracts with BioNTech, Daiichi Sankyo, Level Set Bio, and Incyte Pharmaceuticals contributing to ~$200 million in total bookings this quarter.
Capital resources included $820.7 million in cash and marketable securities as of June 30, 2026, and the company completed a $460 million offering of 0.0% convertible senior notes due 2032. Tempus raised its full-year 2026 revenue guidance to $1.595 to $1.605 billion, representing ~25% annual growth, while continuing to expect Adjusted EBITDA of ~$65 million. Guidance excludes any effect from the Personalis transaction, which is expected to close in late Q4 2026 or early 2027.
Strategically, the company announced an agreement to acquire Personalis for $16.25 per share (~$1.5 billion enterprise value), received FDA approval for tumor-only xT CDx assay, and delivered the first version of its foundation model to AstraZeneca. The reported period therefore combined accelerating Oncology volume growth, continued Data and Applications expansion, improved adjusted profitability, and a materially expanded strategic and financing agenda.
Management, verbatim
Q2 was another exceptional quarter for us,
Eric Lefkofsky, Founder and CEO of Tempus
Our strategy is working given the investments we have made in AI over the past several years are driving some of the best growth rates we have seen in our two largest businesses - Oncology Diagnostics and Data Licensing.
Eric Lefkofsky, Founder and CEO of Tempus
Through our existing collaboration with Personalis, we have already demonstrated the strength of combining highly sensitive MRD technology with our commercial infrastructure,
Eric Lefkofsky, Founder and CEO of Tempus
Not in the filing
stated, not guessed- GAAP gross margin
- Non-GAAP gross profit
- Non-GAAP gross margin
- GAAP operating expenses
- Non-GAAP operating expenses
- Operating cash flow
- Free cash flow
- Capital expenditures
- Debt balance
- Share repurchases
- Dividends
- Diluted net income (loss) per share
- Non-GAAP diluted net loss per share
- Prior-quarter revenue
- Prior-quarter gross profit
- Prior-quarter GAAP loss from operations
- Prior-quarter net income (loss)
- Prior-quarter Adjusted EBITDA
- Prior-quarter segment revenue
- Prior guidance and comparison with actual results
- Guidance for gross margin
- Guidance for operating expenses
- Guidance for tax rate
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Tempus filed an 8-K with Exhibit 99.1 reporting Q2 2026 results and updating full-year guidance, alongside deal and product/regulatory updates.
Ticker impact
Tempus reported Q2 2026 results and raised 2026 revenue guidance to $1.595 to $1.605 billion, plus expects ~$65M Adjusted EBITDA.
Bias upward on guidance credibility, with volatility around acquisition closing assumptions and any financing/dilution details.
The filing discloses concrete Q2 financials (revenue, Adjusted EBITDA) and a specific full-year guidance increase, while also stating guidance assumes no impact from the Personalis transaction and providing deal economics and timing.
Market effects
Strength in oncology diagnostics volumes and MRD test growth reinforces demand signals for precision oncology testing and AI-enabled clinical workflows.
Primarily US-listed healthcare/biotech sentiment, with potential spillover to precision medicine peers via read-across on diagnostics adoption.
FDA approval for tumor-only xT CDx and large pharma collaborations can influence global competitive positioning in companion diagnostics and MRD workflows.
Counterpoint
The guidance explicitly assumes no impact from the Personalis transaction, so upside may be limited until deal integration and closing effects are quantified.
Key entities
- issuerTempus AI, Inc.
NASDAQ-listed precision medicine AI and oncology diagnostics company reporting Q2 results and raising 2026 guidance.
- targetPersonalis
Tumor-informed MRD technology company Tempus agreed to acquire for $16.25 per share, with closing expected late Q4 2026 or early 2027.
- partnerAstraZeneca
Pharma partner referenced for delivery of Tempus’ first oncology foundation model.
- regulatorFDA
Approved Tempus tumor-only xT CDx assay, enabling migration of tissue testing to ADLT pricing.
