Tempus Raises 2026 Revenue Outlook to $1.605 Billion After 23% Quarterly Growth
Key Facts
Tempus reported on November 2 results for the quarter ended September 30, posting revenue of $411.5 million, up 23% year over year, and raised its full-year revenue outlook to a range of $1.60–1.605 billion. Founder and Chief Executive Officer Eric Lefkofsky said, "The third quarter was another record quarter," citing 32% growth in oncology volume and accelerating 33% revenue growth in the data and applications segment. Adjusted EBITDA was $25.6 million, compared with $1.5 million in the third quarter of 2025. Still, the company posted a net loss of $14.9 million, down from a loss of $80 million a year earlier. The results reflect growth in diagnostics and data alongside an improvement in the adjusted operating metric, while the net loss presents a different financial picture from that metric's profitability.
The diagnostics segment generated revenue of $303.5 million, up 20% year over year, according to the company statement. Tempus attributed the growth to a 32% increase in oncology volume, while genetic testing revenue rose 3%. Minimal residual disease testing volume reached about 12,000 tests during the quarter, up 300% from the comparable period. The figures show diagnostics growth alongside an expansion in oncology activity, while genetic testing recorded slower growth. Lefkofsky said oncology volume growth was one of the drivers of the record quarter, linking the segment's performance to volume as well as revenue.
The data and applications segment posted revenue of $108.1 million, up 33% year over year, while Insights revenue rose 29%, the company said. Gross profit increased 27% to $266.7 million, with Tempus saying growth in the data and applications segment drove the increase. In October, the company announced a strategic collaboration with Bristol Myers Squibb and said year-to-date data licensing bookings had exceeded $550 million. The agreements include licensing oncology data and models for up to $137.5 million over five years, as well as licensing Alzheimer’s or dementia patient data for $55 million over the same period. These contracts add a contracted revenue source for the data business alongside the revenue the segment recorded during the quarter.
Tempus also announced a multiyear strategic collaboration with Merck and Moderna to support the potential commercialization of a personalized neoantigen-based therapy. The therapy is being evaluated with Keytruda for patients with stage IIB to IV melanoma and other cancer types, according to the company statement. On the financial results, the $14.9 million net loss included $50.8 million in stock-based compensation expense and related payroll taxes. It also included $42.8 million in unrealized gains on marketable securities. The company had $854.4 million in cash and marketable securities at the end of the quarter. These items provide context for reading the net loss alongside improved adjusted earnings, without changing the loss figure reported by the company.
Tempus raised its 2026 revenue outlook to a range of $1.60–1.605 billion, equivalent to year-over-year growth of about 25%, and also expects adjusted EBITDA of about $65 million. With this update, the annual outlook incorporates the revenue range announced on November 2, instead of relying only on the July guidance cited in the previous draft. The company also said it had completed regulatory review of its pending acquisition of Personalis. Personalis scheduled a virtual shareholder meeting for November 30, 2026, at 9:00 a.m. Pacific time to vote on the deal. Completion requires approval from holders of a majority of Personalis’s outstanding common shares, according to the company’s filing with the U.S. Securities and Exchange Commission.
Tempus shares closed at $72.22 on October 30, the last close before the results announcement on November 2, according to EL7 data. The available evidence did not include the share price after the announcement or a comparison of earnings per share with analyst estimates. The results focus investors on whether the company can achieve its annual revenue range and its adjusted earnings outlook for 2026. Personalis shareholder approval is also a near-term milestone in the acquisition process, with the vote scheduled for the November 30 meeting. These dates and forecasts remain part of the information announced by the company and disclosures related to the deal.