8-K: Tempus AI Reports Strong Q2 2026 Results, Boosts Guidance

Tempus AI announced robust second quarter 2026 financial results, driven by significant year-over-year revenue growth in both Diagnostics and Data Licensing, leading to an increase in full-year revenue guidance.

Summary

• Tempus AI reported strong financial results for the second quarter ended June 30, 2026.
• Total revenue increased by 22% year-over-year to $382.5 million.
• Oncology Diagnostics volume grew 31% year-over-year, with Molecular Residual Disease (MRD) tests reaching 9,000.
• Data Licensing & Modeling (Insights) revenue saw a 36% year-over-year increase, with approximately $200 million in new licenses signed.
• The company achieved GAAP net income of $5.6 million and Adjusted EBITDA of $8.0 million.
• Cash and marketable securities stood at $820.7 million as of June 30, 2026.
• Full-year 2026 revenue guidance was raised to $1.595 to $1.605 billion, with an expected full-year Adjusted EBITDA of approximately $65 million.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive report, with significant revenue growth, improved profitability metrics, and increased forward guidance, alongside strategic acquisitions.

Positives

• Total revenue grew 22% year-over-year to $382.5 million.
• Oncology volume growth accelerated to 31% year-over-year.
• Molecular Residual Disease (MRD) test volume increased significantly to 9,000 tests.
• Data Licensing & Modeling revenue grew 36% year-over-year.
• Secured approximately $200 million in new Data and Applications licenses.
• Achieved positive GAAP net income of $5.6 million, a significant improvement from the prior year's net loss.
• Adjusted EBITDA turned positive at $8.0 million, up from a negative $5.6 million in the prior year.
• Increased full-year 2026 revenue guidance to $1.595 $1.605 billion, indicating strong future expectations.

Negatives

• Loss from operations was $(75.9) million for the quarter, an increase from $(61.8) million in the prior year.
• Non-GAAP loss from operations was $(2.7) million, an increase from $(17.0) million in the prior year.
• Stock-based compensation expense was $54.1 million for the quarter, a significant increase from $22.5 million in the prior year.
• Acquisition-related expenses were $1.0 million for the quarter.

Risks

• Risks related to the intended use of Tempus products and services.
• Risks associated with Tempus' financial performance and ability to manage growth and future expenses.
• Competition and new market entrants.
• Compliance with new laws, regulations, and executive actions, including evolving AI regulations.
• Ability to maintain, protect, and enhance intellectual property.
• Ability to attract and retain qualified team members and key personnel.
• Ability to repay or refinance outstanding debt, or access additional financing.
• Risks associated with future acquisitions, including the pending acquisition of Personalis, and realizing expected benefits.

Future Outlook

Tempus AI is increasing its full-year 2026 revenue guidance to a range of $1.595 billion to $1.605 billion, representing approximately 25% annual growth. The company continues to expect full-year 2026 Adjusted EBITDA to be around $65 million. This guidance does not include any impact from the pending acquisition of Personalis, which is anticipated to close in late Q4 2026 or early 2027.

Management Comments

• "Q2 was another exceptional quarter for us. 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."
• "Through our existing collaboration with Personalis, we have already demonstrated the strength of combining highly sensitive MRD technology with our commercial infrastructure. With clinical adoption and reimbursement momentum building, we believe we are collectively well positioned to capture this opportunity, which makes this acquisition particularly exciting."

Industry Context

StockSavvy.ai notes that Tempus AI's strong performance in AI-driven precision medicine, particularly in oncology diagnostics and data licensing, aligns with the broader industry trend of leveraging artificial intelligence to accelerate drug discovery, personalize treatment, and improve patient outcomes. The company's strategic acquisitions and collaborations further position it within this rapidly evolving landscape.

Comparison to Industry Standards

• Tempus AI's year-over-year revenue growth of 22% in Q2 2026 outpaces the average growth rate for many companies in the broader healthcare technology sector, though specific comparisons depend on sub-industry segmentation.
• The company's focus on AI and large-scale data aggregation for precision medicine is a key differentiator, with few direct competitors possessing a similar integrated platform.
• The reported Adjusted EBITDA of $8.0 million indicates a move towards profitability, which is a positive sign in a capital-intensive sector focused on long-term R&D and market penetration.

Related Party Transactions

• Includes related party revenue in Diagnostics and Data and Applications segments.
• Includes related party accounts receivable and payable.
• Includes related party deferred revenue.
• Includes related party investment.

Stakeholder Impact

• Shareholders: Positive impact from increased revenue guidance, improved profitability metrics, and strategic acquisition, potentially leading to stock price appreciation.
• Employees: Continued investment in AI and R&D may lead to job growth and opportunities, but also potential integration challenges from acquisitions.
• Customers: Enhanced diagnostic capabilities and data insights from AI platform and acquisitions like Personalis could lead to improved patient care and treatment options.
• Suppliers: Increased operational scale may lead to greater demand for services and supplies.

Next Steps

• Continue to drive growth in Oncology Diagnostics and Data Licensing businesses.
• Integrate Personalis' ultrasensitive NeXT Personal MRD technology into Tempus' diagnostic platform.
• Close the acquisition of Personalis, expected in late Q4 2026 or early 2027.
• Continue to leverage AI platform for precision medicine solutions.
• Monitor and adapt to evolving regulatory landscapes in AI and healthcare.

Key Dates

Recommendation

The company demonstrated strong top-line growth, significant improvements in profitability metrics (turning positive Adjusted EBITDA), and raised its full-year guidance. The strategic acquisition of Personalis further strengthens its market position in a key growth area (MRD). These factors, combined with a solid cash position, suggest a highly positive outlook.

Keywords

precision medicine, AI in healthcare, oncology diagnostics, data licensing, molecular residual disease, foundation model, convertible senior notes, FDA approval