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Why Is Tempus (TEM) Down 11.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Tempus AI (TEM - Free Report) . Shares have lost about 11.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Tempus due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Q1 Loss Narrower Than Estimate, Revenues Beat the Mark
Tempus AI 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.
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.
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.
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.
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.
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.
Adjusted EBITDA for the year is expected to be $65 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -50.55% due to these changes.
VGM Scores
At this time, Tempus has a nice Growth Score of B, a score with the same score on the momentum front. However, the stock was allocated a score of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tempus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Tempus (TEM) Down 11.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Tempus AI (TEM - Free Report) . Shares have lost about 11.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Tempus due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Q1 Loss Narrower Than Estimate, Revenues Beat the Mark
Tempus AI 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.
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.
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.
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.
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.
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.
Adjusted EBITDA for the year is expected to be $65 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -50.55% due to these changes.
VGM Scores
At this time, Tempus has a nice Growth Score of B, a score with the same score on the momentum front. However, the stock was allocated a score of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tempus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.