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TEM Q1 Loss Narrower Than Expected, Revenues Beat, Stock Down
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Key Takeaways
TEM reported Q1 loss of 13 cents per share, narrower than last year and beat estimates.
Tempus AI revenue rose 36.1% to $348.1M, driven by Diagnostics and Data segments growth.
TEM raised 2026 revenue outlook to $1.59-$1.60B, expecting nearly 25% annual growth.
Tempus AI, Inc. (TEM - Free Report) reported a first-quarter 2026 adjusted loss of 13 cents per share compared with the year-ago quarter’s loss of 24 cents. The figure was narrower than the loss per share estimate by 38.1%.
GAAP loss per share was 70 cents compared with the year-ago quarter’s GAAP loss of 40 cents.
TEM’s Revenues
First-quarter revenues totaled $348.1 million, which beat the Zacks Consensus Estimate by 0.8%. The top line surged 36.1% on a year-over-year basis.
Following the announcement, shares of Tempus AI declined 3.1% yesterday, reflecting investor reaction to the company’s reported quarterly operating loss.
Details of TEM’s Q1 Revenues
Diagnostics generated revenues of $261.1 million, reflecting a 34.7% year-over-year increase.
Within this, Oncology volume grew 28% year over year and Hereditary volume rose 54%.
The Data and Applications segment reported sales of $87 million, up 40.5% year over year. This was driven by Insights (data licensing), which grew 44.1% year over year.
TEM’s Margin Performance
The gross profit in the first quarter was $222 million, up 43.1% from the year-ago quarter’s level. The adjusted gross margin expanded 309 bps to 63.8% despite a 25.4% rise in the cost of revenues.
Total adjusted operating expenses were $260.8 million, up 36.9% from the year-ago quarter’s level. The company incurred an operating loss of $38.8 million compared with the year-ago quarter’s loss of $35.3 million.
TEM’s Liquidity Position
At the end of the first quarter of 2026, the company had cash and cash equivalents of $521.2 million compared with $604.8 million at the end of the fourth quarter of 2025.
Cumulative net cash used in investing activities at the end of the reported quarter was $73.3 million compared with $105.6 million a year ago.
Tempus AI’s Full-Year 2026 Outlook
The company raised its revenue guidance for 2026. Full-year revenues are now expected to be in the range of $1.59-$1.60 billion (up from $1.59 billion), indicating nearly 25% annual growth. The Zacks Consensus Estimate for revenues is pinned at $1.59 billion.
Adjusted EBITDA for the year is expected to be $65 million.
Tempus AI ended the first quarter of 2026 on a positive note, with revenues surpassing estimates and loss per share being narrower than expected. Also, loss reduced on a year-over-year basis. The company’s strong financial and operational performance in the quarter underscores the accelerating demand for its AI-driven diagnostic platform and the immense value of multimodal data and corresponding AI models. Supported by the strong quarterly performance and multiple catalysts, management raised its 2026 revenue outlook.
It achieved several milestones in the first quarter, including its strategic collaborations with Merck, NYU Langone Health and Blood Cancer United. TEM also launched first-of-its-kind pan-cancer algorithm that utilizes RNA expression data to identify Homologous Recombination Deficiency (“HRD”).
Yet, the company’s quarterly operating loss looks discouraging.
TEM’s Zacks Rank and Key Picks
Tempus AI currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Intuitive Surgical (ISRG - Free Report) and Phibro Animal Health (PAHC - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $1.28, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an earnings yield of 4.7% compared to the industry’s negative yield of 1.4%. The company’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.79%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a first-quarter 2026 adjusted EPS of $2.50, which exceeded the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% in contrast to the industry’s negative yield of 0.9%. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of 87 cents, which outpaced the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.
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TEM Q1 Loss Narrower Than Expected, Revenues Beat, Stock Down
Key Takeaways
Tempus AI, Inc. (TEM - Free Report) reported a first-quarter 2026 adjusted loss of 13 cents per share compared with the year-ago quarter’s loss of 24 cents. The figure was narrower than the loss per share estimate by 38.1%.
GAAP loss per share was 70 cents compared with the year-ago quarter’s GAAP loss of 40 cents.
TEM’s Revenues
First-quarter revenues totaled $348.1 million, which beat the Zacks Consensus Estimate by 0.8%. The top line surged 36.1% on a year-over-year basis.
Following the announcement, shares of Tempus AI declined 3.1% yesterday, reflecting investor reaction to the company’s reported quarterly operating loss.
Details of TEM’s Q1 Revenues
Diagnostics generated revenues of $261.1 million, reflecting a 34.7% year-over-year increase.
Within this, Oncology volume grew 28% year over year and Hereditary volume rose 54%.
The Data and Applications segment reported sales of $87 million, up 40.5% year over year. This was driven by Insights (data licensing), which grew 44.1% year over year.
TEM’s Margin Performance
The gross profit in the first quarter was $222 million, up 43.1% from the year-ago quarter’s level. The adjusted gross margin expanded 309 bps to 63.8% despite a 25.4% rise in the cost of revenues.
Total adjusted operating expenses were $260.8 million, up 36.9% from the year-ago quarter’s level. The company incurred an operating loss of $38.8 million compared with the year-ago quarter’s loss of $35.3 million.
TEM’s Liquidity Position
At the end of the first quarter of 2026, the company had cash and cash equivalents of $521.2 million compared with $604.8 million at the end of the fourth quarter of 2025.
Cumulative net cash used in investing activities at the end of the reported quarter was $73.3 million compared with $105.6 million a year ago.
Tempus AI’s Full-Year 2026 Outlook
The company raised its revenue guidance for 2026. Full-year revenues are now expected to be in the range of $1.59-$1.60 billion (up from $1.59 billion), indicating nearly 25% annual growth. The Zacks Consensus Estimate for revenues is pinned at $1.59 billion.
Adjusted EBITDA for the year is expected to be $65 million.
Tempus AI, Inc. Price, Consensus and EPS Surprise
Tempus AI, Inc. price-consensus-eps-surprise-chart | Tempus AI, Inc. Quote
Our Take on TEM Stock
Tempus AI ended the first quarter of 2026 on a positive note, with revenues surpassing estimates and loss per share being narrower than expected. Also, loss reduced on a year-over-year basis. The company’s strong financial and operational performance in the quarter underscores the accelerating demand for its AI-driven diagnostic platform and the immense value of multimodal data and corresponding AI models. Supported by the strong quarterly performance and multiple catalysts, management raised its 2026 revenue outlook.
It achieved several milestones in the first quarter, including its strategic collaborations with Merck, NYU Langone Health and Blood Cancer United. TEM also launched first-of-its-kind pan-cancer algorithm that utilizes RNA expression data to identify Homologous Recombination Deficiency (“HRD”).
Yet, the company’s quarterly operating loss looks discouraging.
TEM’s Zacks Rank and Key Picks
Tempus AI currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Intuitive Surgical (ISRG - Free Report) and Phibro Animal Health (PAHC - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $1.28, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an earnings yield of 4.7% compared to the industry’s negative yield of 1.4%. The company’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.79%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a first-quarter 2026 adjusted EPS of $2.50, which exceeded the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% in contrast to the industry’s negative yield of 0.9%. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of 87 cents, which outpaced the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.