Equity Research · Earnings Update

Tempus AI Inc (TEM)

Q1 2026 Earnings Update · Position: TEM (0.68% of book)

Rating HOLD(existing position, no change)

Price $57.29 (implied)

Position avg. cost $49.73

Position return +15.16%

Summary and key takeaways

Tempus AI reported Q1 2026 revenue of $348.1 million, up 36.4% year-over-year and above the $345.4 million estimate. Adjusted EPS of ($0.13) beat the ($0.20) estimate, though GAAP EPS came in meaningfully worse than forecast, reflecting a wider net loss on a fully-loaded basis — underscoring the same GAAP/adjusted-metric gap flagged elsewhere in this quarter's coverage. Diagnostics revenue grew 34.7% to $261.1 million, while Data and Applications revenue grew a faster 40.5% to $87.0 million, driven by surging biopharma demand for data licensing and AI modeling services.

Results snapshot

Metric	Q1 2026	Note
Revenue	$348.1M	+36.4% YoY, beat est.
Adjusted EPS	($0.13)	Beat ($0.20) est.
Diagnostics revenue	$261.1M	+34.7%
Data & Applications revenue	$87.0M	+40.5%

Source: Tempus AI Q1 2026 earnings coverage (Investing.com, MarketBeat, Simply Wall St). Note: sources show conflicting GAAP EPS figures; adjusted EPS of ($0.13) beating a ($0.20) estimate is the more consistently reported figure across sources.

Analysis

Data and Applications outgrowing core Diagnostics (40.5% vs. 34.7%) is the number to watch — it's the AI-modeling and data-licensing segment of the business, and if it continues outgrowing the more established diagnostics testing business, Tempus's long-term margin profile likely improves, since data licensing typically carries higher incremental margins than lab-testing operations.

Guidance

Full-year 2026 revenue guidance raised to $1.59–1.60 billion (~25% annual growth)
Full-year 2026 Adjusted EBITDA guidance maintained at approximately $65 million

Updated investment thesis

TEM is a Spec-sleeve holding on AI-driven precision medicine and biopharma data licensing. This quarter's revenue beat and raised full-year guide, combined with the faster-growing Data and Applications segment, are consistent with the thesis maturing, even as GAAP profitability remains a genuine open question given the disclosed loss.

No position changes from this report.

Risks to this position

Profitability risk: the gap between adjusted and GAAP losses this quarter is large and worth monitoring closely in future prints.
Regulatory risk: healthcare diagnostics and AI-in-medicine businesses carry ongoing regulatory and reimbursement policy risk not detailed in this specific report.
Customer-concentration risk: biopharma data-licensing revenue can be lumpy and concentrated among a relatively small number of large pharmaceutical customers.

Sources & references

Tempus AI (TEM) Q1 Loss Widens — Simply Wall St News
Earnings call transcript: Tempus AI sees robust revenue growth despite EPS miss — Investing.com
Tempus AI Q1 Earnings Call Highlights — MarketBeat

Prepared for informational purposes based on publicly available information as of July 11, 2026, and does not constitute investment advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. See the TEM security page for full sizing and thesis detail.