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

Tempus AI (NASDAQ:TEM) announced its earnings results on Thursday. The company reported ($0.04) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.14) by $0.10, FiscalAI reports. Tempus AI had a negative return on equity of 53.83% and a negative net margin of 22.20%.The business had revenue of $382.49 million for the quarter, compared to analyst estimates of $379.69 million. During the same period in the previous year, the company earned ($0.22) earnings per share. The company’s revenue for the quarter was up 21.6% compared to the same quarter last year.

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 Price Performance

TEM stock traded down $1.07 during trading hours on Friday, hitting $43.22. 2,304,038 shares of the stock traded hands, compared to its average volume of 5,853,512. Tempus AI has a one year low of $40.77 and a one year high of $104.32. The company has a current ratio of 3.31, a quick ratio of 3.15 and a debt-to-equity ratio of 2.96. The company has a market cap of $7.76 billion, a P/E ratio of -25.22 and a beta of 3.46. The stock has a 50-day simple moving average of $51.45 and a 200 day simple moving average of $52.77.

Tempus AI News Summary

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

• Positive Sentiment: Q2 results exceeded expectations. Tempus AI 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 $382.49 million, slightly above estimates of $379.69 million. Tempus AI Q2 earnings report
• Positive Sentiment: Growth outlook remains strong. Management highlighted accelerating growth in its oncology diagnostics and data businesses, driven by investments in artificial intelligence. Tempus is targeting approximately $1.595 billion to $1.605 billion in 2026 revenue and outlined a potential $400 million revenue uplift by 2028 tied to its xT CDx and xF products. Tempus revenue outlook
• Positive Sentiment: Needham reaffirmed its bullish view. Needham & Company maintained a “Buy” rating and set a $75 price target, implying substantial upside from recent trading levels. Needham analyst rating
• Neutral Sentiment: Profitability remains unresolved. Although the adjusted loss narrowed, Tempus continues to operate at a negative net margin and analysts expect a full-year loss, leaving the stock dependent on continued high revenue growth.
• Negative Sentiment: CEO Eric Lefkofsky sold 250,000 shares. The $10.5 million transaction reduced his direct ownership by 55.56%. Because the sale was made under a pre-arranged Rule 10b5-1 plan, it may not reflect a change in his business outlook, but the size of the sale could still create an overhang for investors. SEC insider transaction filing

Insider Activity

In related news, CEO Eric P. Lefkofsky sold 250,000 shares of the stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $42.06, for a total value of $10,515,000.00. Following the completion of the transaction, 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. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Ryan M. Bartolucci sold 4,116 shares of Tempus AI stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $44.07, for a total value of $181,392.12. Following the completion of the transaction, the chief accounting officer directly owned 74,041 shares in the company, valued at $3,262,986.87. This represents a 5.27% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 699,793 shares of company stock valued at $33,763,231 in the last ninety days. 24.26% of the stock is owned by company insiders.

Institutional Trading of Tempus AI

A number of hedge funds have recently bought and sold shares of TEM. ARK Investment Management LLC increased its position in shares of Tempus AI by 5.3% in the fourth quarter. ARK Investment Management LLC now owns 7,557,583 shares of the company’s stock worth $446,275,000 after acquiring an additional 381,816 shares in the last quarter. State Street Corp grew its position in Tempus AI by 9.8% during the 4th quarter. State Street Corp now owns 1,616,338 shares of the company’s stock worth $95,445,000 after purchasing an additional 143,676 shares in the last quarter. Voloridge Investment Management LLC lifted its holdings in shares of Tempus AI by 183.0% in the third quarter. Voloridge Investment Management LLC now owns 1,607,083 shares of the company’s stock valued at $129,708,000 after purchasing an additional 1,039,176 shares in the last quarter. Franklin Resources Inc. boosted its position in shares of Tempus AI by 0.4% in the third quarter. Franklin Resources Inc. now owns 1,456,120 shares of the company’s stock worth $117,523,000 after buying an additional 5,375 shares during the period. Finally, AQR Capital Management LLC grew its holdings in shares of Tempus AI by 6.4% during the third quarter. AQR Capital Management LLC now owns 904,872 shares of the company’s stock valued at $73,032,000 after buying an additional 54,692 shares in the last quarter. 24.22% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

TEM has been the subject of a number of recent analyst reports. BTIG Research restated a “buy” rating and set a $80.00 price objective on shares of Tempus AI in a research note on Monday, June 1st. HC Wainwright reiterated a “buy” rating on shares of Tempus AI in a research note on Friday, July 24th. Wolfe Research started coverage on shares of Tempus AI in a research note on Tuesday, June 2nd. They issued a “peer perform” rating for the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $75.00 price target on shares of Tempus AI in a report on Friday. Finally, Guggenheim increased their price objective on shares of Tempus AI from $60.00 to $65.00 and gave the company a “buy” rating in a research note on Thursday, July 16th. Nine equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Tempus AI presently has a consensus 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.