Tempus AI (NASDAQ:TEM) Issues Earnings Results

Tempus AI (NASDAQ:TEM) posted its earnings results on Thursday. The company reported ($0.04) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.14) by $0.10, FiscalAI reports. The firm had revenue of $382.49 million for the quarter, compared to analysts’ expectations of $379.69 million. Tempus AI had a negative net margin of 17.77% and a negative return on equity of 49.56%. The company’s revenue was up 21.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.22) earnings per share.

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 Down 0.9%

Shares of Tempus AI stock traded down $0.42 during trading on Friday, hitting $43.87. The company’s stock had a trading volume of 7,294,347 shares, compared to its average volume of 4,757,049. The company has a debt-to-equity ratio of 2.96, a current ratio of 3.31 and a quick ratio of 3.15. Tempus AI has a 52 week low of $40.77 and a 52 week high of $104.32. The stock has a market cap of $7.88 billion, a price-to-earnings ratio of -30.47 and a beta of 3.46. The stock has a 50-day moving average price of $51.40 and a two-hundred day moving average price of $52.70.

Insider Buying and Selling

In related news, CEO Ryan Fukushima sold 33,284 shares of the firm’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $57.39, for a total transaction of $1,910,168.76. Following the completion of the transaction, the chief executive officer directly owned 167,763 shares of the company’s stock, valued at $9,627,918.57. This trade represents a 16.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric P. Lefkofsky sold 250,000 shares of the company’s stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $42.06, for a total value of $10,515,000.00. Following the completion of the sale, the chief executive officer owned 200,000 shares in the company, valued at $8,412,000. This trade represents a 55.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 699,793 shares of company stock valued at $33,763,231 in the last quarter. 24.26% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Victory Capital Management Inc. lifted its position in shares of Tempus AI by 1.5% in the 3rd quarter. Victory Capital Management Inc. now owns 11,078 shares of the company’s stock worth $894,000 after purchasing an additional 162 shares during the period. SeaCrest Wealth Management LLC increased its position in shares of Tempus AI by 3.7% during the third quarter. SeaCrest Wealth Management LLC now owns 6,488 shares of the company’s stock worth $524,000 after buying an additional 229 shares during the period. Northwestern Mutual Wealth Management Co. raised its stake in Tempus AI by 64.5% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 653 shares of the company’s stock worth $53,000 after buying an additional 256 shares during the last quarter. Pathstone Holdings LLC raised its stake in Tempus AI by 1.4% during the third quarter. Pathstone Holdings LLC now owns 18,338 shares of the company’s stock worth $1,480,000 after buying an additional 261 shares during the last quarter. Finally, Kestra Advisory Services LLC lifted its holdings in Tempus AI by 4.7% in the fourth quarter. Kestra Advisory Services LLC now owns 7,278 shares of the company’s stock valued at $430,000 after buying an additional 324 shares during the period. Institutional investors own 24.22% of the company’s stock.

Key Stories Impacting Tempus AI

Here are the key news stories impacting Tempus AI this week:

• Positive Sentiment: Q2 results beat expectations. Tempus reported an adjusted loss of $0.04 per share, narrower than the $0.14 consensus loss and improved from a $0.22 loss a year earlier. Revenue increased 21.6% year over year to $382.5 million, modestly above estimates. Tempus AI Q2 earnings report
• Positive Sentiment: Management raised or reaffirmed strong 2026 growth expectations. Full-year revenue guidance is approximately $1.595 billion to $1.605 billion, supported by momentum in oncology diagnostics, data and modeling. Tempus also outlined a potential $400 million revenue uplift by 2028 tied to its xT CDx and xF products. Tempus revenue outlook
• Positive Sentiment: Analyst support remains favorable. Needham reaffirmed its Buy rating and set a $75 price target, implying substantial upside from recent trading levels. Needham analyst rating
• Negative Sentiment: The earnings beat did not fully resolve profitability concerns. Tempus remains unprofitable, with a negative net margin and analysts projecting a full-year loss. Revenue guidance is broadly consistent with expectations rather than a major upside surprise, contributing to the post-earnings reset. Tempus earnings call highlights
• Negative Sentiment: CEO Eric Lefkofsky sold 250,000 shares. The $10.5 million sale reduced his direct holdings by more than half. Although it was conducted under a pre-arranged Rule 10b5-1 plan, the transaction can still weigh on sentiment, particularly while the stock trades well below its 52-week high. Tempus CEO stock sale

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. Jefferies Financial Group started coverage on Tempus AI in a report on Monday, April 13th. They set an “underperform” rating and a $35.00 price objective on the stock. Lake Street Capital cut Tempus AI to a “hold” rating in a report on Monday, July 20th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Tempus AI in a research report on Wednesday, June 17th. TD Cowen reissued a “buy” rating on shares of Tempus AI in a research note on Wednesday, July 15th. Finally, Needham & Company LLC restated a “buy” rating and set a $75.00 price target on shares of Tempus AI in a report on Friday. Nine analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Tempus AI currently has an average rating of “Hold” and a consensus price target of $68.92.

Tempus AI Company Profile

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.