Tempus AI (NASDAQ:TEM) Releases Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Tempus AI (NASDAQ:TEM) announced its quarterly earnings results on Thursday. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.14) by $0.10, FiscalAI reports. Tempus AI had a negative net margin of 22.20% and a negative return on equity of 53.83%. The firm had revenue of $382.49 million for the quarter, compared to analysts’ expectations of $379.69 million.

Here are the key takeaways from Tempus AI’s conference call:

• Q2 revenue rose 22% to $382.5 million, with diagnostics revenue up 20% and data and applications revenue up 28%; Insights revenue increased 36%. Management raised 2026 revenue guidance to $1.595 billion–$1.605 billion and expects adjusted EBITDA of approximately $65 million.
• FDA approval of tumor-only xT CDx enables unified ADLT pricing for Tempus’ solid-tumor DNA portfolio, which management estimates could add about $85 million of annual revenue beginning in 2027. A future xF liquid-biopsy approval could bring total revenue uplift from the two products to approximately $400 million in 2028.
• The data business showed strong commercial momentum, including a multi-year BioNTech agreement, deals with several other biopharma companies, and approximately $200 million in quarterly bookings. Management said demand for its Lens platform, data licensing, and modeling capabilities is strengthening visibility into 2026 and 2027 growth.
• Tempus completed a $460 million zero-coupon convertible-notes offering and used part of the proceeds to repay Ares Capital debt, reducing annual interest expense by more than $30 million. Operating cash use improved to $7.5 million, and management expects to achieve positive free cash flow by year-end.
• Tempus agreed to acquire Personalis in an all-stock transaction, adding its MRD testing platform to the portfolio; MRD test volumes increased 38% sequentially to approximately 9,000 in Q2. However, Tempus plans to expand sales coverage gradually because current MRD economics are near break-even, and the deal may involve additional debt and some shareholder dilution.

Tempus AI Trading Up 6.6%

Shares of NASDAQ:TEM traded up $2.74 during mid-day trading on Thursday, reaching $44.29. 7,418,942 shares of the company were exchanged, compared to its average volume of 5,879,973. Tempus AI has a 1 year low of $40.77 and a 1 year high of $104.32. The company has a debt-to-equity ratio of 2.96, a current ratio of 3.31 and a quick ratio of 3.15. The firm’s 50-day simple moving average is $51.49 and its 200 day simple moving average is $52.92. The firm has a market cap of $7.95 billion, a price-to-earnings ratio of -25.75 and a beta of 3.46.

Insider Buying and Selling

In related news, CEO Eric P. Lefkofsky sold 166,250 shares of the business’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $57.48, for a total value of $9,556,050.00. Following the sale, the chief executive officer owned 8,775,283 shares in the company, valued at approximately $504,403,266.84. The trade was a 1.86% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jennifer A. Doudna sold 2,673 shares of the firm’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $55.00, for a total value of $147,015.00. Following the transaction, the director owned 25,942 shares of the company’s stock, valued at $1,426,810. This trade represents a 9.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 449,793 shares of company stock valued at $23,248,231 over the last quarter. 24.26% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. JPL Wealth Management LLC purchased a new stake in Tempus AI during the 3rd quarter worth approximately $26,000. Los Angeles Capital Management LLC acquired a new position in shares of Tempus AI in the fourth quarter worth $27,000. Harvest Fund Management Co. Ltd purchased a new stake in shares of Tempus AI during the third quarter worth $38,000. EverSource Wealth Advisors LLC raised its stake in shares of Tempus AI by 88.8% in the second quarter. EverSource Wealth Advisors LLC now owns 691 shares of the company’s stock valued at $44,000 after acquiring an additional 325 shares in the last quarter. Finally, Danske Bank A S purchased a new position in Tempus AI in the third quarter valued at $48,000. Hedge funds and other institutional investors own 24.22% of the company’s stock.

Analyst Upgrades and Downgrades

TEM has been the topic of a number of recent analyst reports. Guggenheim upped their price objective on Tempus AI from $60.00 to $65.00 and gave the company a “buy” rating in a report on Thursday, July 16th. HC Wainwright reissued a “buy” rating on shares of Tempus AI in a research note on Friday, July 24th. TD Cowen reaffirmed a “buy” rating on shares of Tempus AI in a research note on Wednesday, July 15th. Lake Street Capital cut Tempus AI to a “hold” rating in a report on Monday, July 20th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Tempus AI in a research report on Wednesday, June 17th. Nine research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Tempus AI currently has a consensus rating of “Hold” and an average price target of $68.92.

About Tempus AI

Tempus is a technology-driven healthcare company that applies artificial intelligence and machine learning to clinical and molecular data in order to advance precision medicine. Its primary focus lies in oncology, where the company offers comprehensive genomic profiling, digital pathology services and data-driven insights to inform personalized cancer care. By integrating DNA and RNA sequencing with structured clinical information, Tempus enables clinicians and researchers to identify targeted treatment options for patients based on the genetic characteristics of their tumors.

The company’s core offering centers on a scalable, cloud-based analytics platform that aggregates vast amounts of molecular and clinical data.